Globe reports strong financial results

Globe Telecom announced it had defied a six-year-old prediction that pointed to a global decline in the telco business.

Globe took aim at a 2013 report by analysts of London-based consultancy Ovum, which received plenty of attention for its warnings for the telco industry.

The report stated that global telecom service revenue would contract for the first time ever in 2018 and that the compounded annual growth rate (CAGR) from 2012 to 2018 would stay below 3 percent except in Africa.

But Globe, in its statement, said it had recorded a 9.1-percent CAGR, which measures a return on investment over a period of time, for service revenues from 2014 to 2018. It said this was faster than the 5.6 percent CAGR from 2009 to 2013.

“We are proud that our strategy of disrupting the telco business model delivered consistent financial results in the past five years,” Globe CEO Ernest Cu said in a statement.

“We will step up our efforts on managing costs, growing revenues and driving efficiencies to fuel further our digitalization efforts for our customers,” he added.

The company cited recent initiatives such as the delivery of cloud-based intelligent omni-channel routing and so-called interactions management to support its customer services in 2018.

The company committed to further improvements this year as it set a record P63-billion spending plan, up 45 percent from the level in 2017. —MIGUEL R. CAMUS