Connect with us

Globe

Globe Sustains Top-line Growth, Hits Record Consolidated Service Revenues in Q1 2022

Published

on

Leading digital solutions group Globe sustained revenue growth in the first quarter of the year on the back of easing pandemic restrictions, posting record-high consolidated revenues of P39.2 billion, higher than pre-pandemic levels.

 

Globe saw a 4% consolidated revenue growth at the close of March, a rise from P37.8 billion the same quarter last year amid gains from data-related products and services with sustained Internet use and improved mobility.

 

Globe’s gross service revenues were also higher by 3% than the fourth quarter of 2021. Total revenues across mobile, broadband, and corporate data accounted for 81% of total service revenues, up from 79% last year.

Advertisement

 

“We are pleased to report that our top-line growth momentum was sustained. We saw encouraging results, particularly in the mobile business, as pandemic restrictions eased and the economy opened up,” said Ernest Cu, Globe President and CEO.

 

As of end-March 2022, mobile business revenues comprised 69% of overall service revenues, improved by 2% from last year’s ₱26.3 billion, mostly from prepaid brands.  Mobile customers are now at 87.4 million, or 10% higher than the previous year.

 

However, the Home Broadband business showed a 4% year-on-year decline, although still better than pre-pandemic levels.  From the ₱7.4 billion generated as of end-March 2021, it went down slightly to ₱7.0 billion for the same period this year.

Advertisement

 

This was primarily due to the continued transition and migration of the broadband subscriber base to fiber, particularly those using Home Prepaid WiFi.  The decline in Fixed Wireless products fully offset the sustained growth from the fixed wired segment.

 

Total Home Broadband subscriber count now stands at 3.5 million, down by 15% year-on-year. As of end-March of 2022, Home Prepaid WiFi data traffic likewise decreased to 138 petabytes from 211 petabytes the year before.

 

Advertisement

On the other hand, Globe’s strong commitment to deliver fiber technology to more homes in the country resulted in an increase in fiber revenues and subscribers against last year by 165% and 155%, respectively.

Meanwhile, Corporate Data revenues posted double-digit growth at 18% to reach an all-time high of ₱3.9 billion this period from ₱3.3 billion a year ago.  Its solid revenue performance was mainly driven by the growth of information and communication technology (ICT) businesses, particularly business application services and cloud solutions, and supported by the sustained growth of domestic services.

 

Globe’s total operating expenses, including a subsidy of ₱19.5 billion for the first three months of 2022, remained relatively unchanged from the same period last year. This period’s higher spending on utilities, interconnect costs, staff costs, maintenance, and services was fully offset by lower ads, promos, leases, provisions, and taxes.

 

Advertisement

Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the first three months of the year stood at ₱19.7 billion, up 8% versus the same period of 2021 due to the 4% improvement in the topline and the relatively flat operating expenses and subsidy.

 

As a result, EBITDA margin for the period rose to 50% from last year’s 48%.  With higher EBITDA and lower non-operating expenses, which fully offset the increase in depreciation charges, net income reached an all-time high of ₱13.7 billion, or 86% higher than the ₱7.3 billion reported a year ago.

 

Lower non-operating expenses during this period were mainly due to the net gain of ₱8.5 billion on the partial sale of Globe’s data center business.  Excluding this one-time gain, normalized net income would have been ₱5.1 billion, or up by 2% year-on-year.

Advertisement

 

Core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, ended at ₱5.1 billion for the quarter.  Similarly, normalized core net income was kept flat year on year.

 

Globe’s balance sheet remained strong and geared comfortably within bank covenants despite increased debt from ₱210.1 billion as of end-March 2021 to ₱217.7 billion this year.

 

Advertisement

Globe’s gross debt-to-equity is at 1.75x while gross debt-to-EBITDA is at 2.40x. Net debt-to-equity ratio is 1.63x, net debt-to-EBITDA is at 2.24x, and debt service coverage ratio is 7.06x.

 

To learn more about Globe, visit www.globe.com.ph.

 

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Globe

Globe earns recognition as Climate Leader in Asia-Pacific for second year in a row

Published

on

For two consecutive years, leading digital solutions platform Globe has been recognized as one of Asia Pacific’s Climate Leaders. The list developed by the Financial Times and Global Market Research Firm, Statista honors companies that are making significant strides in reducing their greenhouse gas (GHG) emissions.

 

Globe is the only Philippine telco company included in this year’s line up. The company sees this recognition as a testament to its commitment to climate action, backed by its energy-efficient technologies and sustainable network operations.

 

“Being recognized by the Financial Times as a Climate Leader for the second time reaffirms our commitment to make a positive impact to the environment.  This inspires us to continue on our path to net zero. We believe that collaboration between us and our stakeholders is key in our roadmap towards a more sustainable, low-carbon future,” said Yoly Crisanto, Globe Group’s Chief Sustainability and Corporate Communications Officer.

 

Advertisement

Globe’s inclusion in the list was a result of the rigorous process conducted by the Financial Times and Statista, where they examined the carbon footprint of thousands of companies in the region.

 

The assessment considered factors such as revenues, independent emissions data reporting, adherence to Scope 1 and Scope 2 emissions reporting, and CDP (formerly Carbon Disclosure Project) ratings among others.  Globe stood out for its substantial reductions in its core emissions intensity between 2016 and 2021, demonstrating not only its financial growth but its dedication to climate action.

A core part of Globe’s success comes from the implementation of numerous climate action initiatives over the years, from deploying green network solutions, piloting off-grid network technologies in remote and disaster-prone areas, adopting eco-friendly batteries, adopting green, low-carbon optical networks technologies, and shifting to renewable energy consumption in its key sites.

 

Advertisement

In line with these, Globe has also ventured into engaging its supply chain, establishing sustainability criteria in its procurement and vendor assessment processes, and rallying business partners to support and follow sustainable practices.  The move propelled a collective, company-wide journey towards greener operations, in line with its commitment to achieving net zero GHG emissions by 2050.

 

Coming from the company’s commitment to set science-based targets through the Science Based Targets Initiative (SBTi) in 2021, Globe is set to submit targets to SBTi for validation and approval this year. Ahead of its submission, Globe achieved a 4.42% reduction in its total Scope 1 and 2 emissions driven by the company’s energy management programs and continued shift to renewable energy sources for its high energy sites. This exceeded its interim voluntary reduction target of 4.2% Linear Annual Reduction Rate (LARR) set in 2022, aligned with the SBTi reduction rate for the 1.5˚C global warming scenario.

 

To learn more about Globe’s sustainability commitments and strategies, visit Globe’s Sustainability page. For the latest Globe Integrated Report, click this link.

Advertisement
Continue Reading

Globe

Globe leads 5G speeds in key Mindanao cities

Published

on

Globe dominated major areas in Mindanao in terms of 5G speeds for the first quarter of the year, as it remains firm in its commitment to providing faster and more reliable connectivity to Filipinos nationwide.

Based on Ookla® Speedtest Intelligence® Q1 2023 data, Globe topped the 5G mobile segment in Cagayan de Oro with a median download speed of 159.298 Mbps, Misamis Oriental with 157.795 Mbps, and Zamboanga with 99.916 Mbps. Globe’s 5G outdoor coverage has reached 90.2 percent in key cities of Mindanao.

This latest wireless internet connectivity offers huge advantages over 4G. With speeds up to 100 times faster, higher bandwidth, and a more stable internet connection, 5G can revolutionize the way people live, work, and play, and help bridge the digital divide.

Globe 5G speeds Mindanao

As a 5G pioneer in the Philippines, Globe helps drive the adoption of 5G technology in the country and paves the way for the next generation of digital innovation. This is in line with its commitment to driving economic growth and development through innovation and infrastructure under the United Nations Sustainable Development Goals.

“The importance of 5G connectivity cannot be overstated. It can unlock countless opportunities for growth and development, not just for businesses but also for individuals and communities. 5G can bring new education and health services to remote areas, create new job opportunities, and spur economic development in the region. This is why Globe is committed to bringing 5G connectivity all over the Philippines so Filipinos anywhere can have access to the same opportunities and services,” said Globe Chief Transformation and Customer Experience Officer Rebecca Eclipse.

In the first quarter of 2023, Globe deployed 66 new 5G sites in 74 cities and towns across the country, expanding its 5G outdoor coverage to 97.21% of the National Capital Region and 90.28% of key cities in Visayas and Mindanao. Globe also logged 4.3 million devices in its 5G network as of March 2023.

Advertisement

To learn more about Globe, visit www.globe.com.ph.

Continue Reading

Globe

Globe donates 100 Home Prepaid WiFi units to DepEd

Published

on

Reliable and high-speed connectivity has become an essential component of effective education in today’s digital age as students and teachers need access to the internet to engage in various online learning activities and resources.

But many schools in underserved areas still struggle with connectivity issues. To address this challenge, Globe is supporting the Department of Education’s (DepEd) MATATAG Agenda, which aims to improve the delivery of basic education facilities and services in far-flung places in the country.

The company recently donated 100 Home Prepaid WiFi units to DepEd, which have been distributed to various schools in the Cordillera Administrative Region (CAR) and Region 1. Globe Home Prepaid WIFi offers budget-friendly yet fast and reliable internet access.

By bringing technology and the internet closer to teachers and students, Globe is helping facilitate better and more efficient learning. High-speed internet connectivity allows teachers and students to access digital textbooks and multimedia learning resources, as well as engage in collaborative online activities.

 Globe donates 100 Home Prepaid WiFi units to DepEd

This provides students with a more comprehensive and meaningful education and supports the development of critical digital literacy skills that are necessary for success in the 21st century.

Advertisement

“Globe hopes to contribute to the achievement of the MATATAG Agenda and make a positive impact on the lives of students and teachers in CAR and Region 1. Globe is committed to continuing its efforts to improve internet connectivity in schools across the Philippines and provide quality education for all,” said Globe Group Chief Sustainability and Corporate Communications Officer Yoly Crisanto.

The MATATAG Agenda has four critical components, including making the curriculum relevant to produce competent and job-ready citizens, accelerating the delivery of basic education facilities and services, giving support to teachers to teach better, and strengthening partnerships and collaborations of the education sector with other sectors.

This is aligned with Globe’s commitment to the United Nations Sustainable Development Goals, including SDG No. 4 which advocates for equitable access to quality education and tools for digital upskilling.

Globe’s involvement in the DepEd program shows its dedication to ensuring that every student has an equal chance to succeed, regardless of socioeconomic status or geographical location. Through its efforts to enhance internet connectivity in schools, Globe helps create more opportunities for students to access quality education and develop critical digital literacy skills.

To learn more about Globe, visit https://www.globe.com.ph/.

Advertisement
Continue Reading

Trending