Globe Telecom sees its wireless business bouncing back as the government drops COVID-19 pandemic movement restrictions.
With Metro Manila and other areas being returned to the most relaxed COVID-19 alert status beginning March 1, Globe said it would see “better prepaid data uptake and mobile revenues this year.”
“During the lockdowns, we see our prepaid top-ups decline. It’s because those who have broadband connections at home offload their usage to broadband, while those whose incomes are affected by the lockdowns control their spending,” Darius Delgado, Globe head of consumer mobile business, said in a statement on Tuesday.
“But then we see recovery as soon as restrictions are lifted. So we expect improvements in the take-up of our prepaid data packs,” he added.
Hit by lockdowns
Globe’s mobile revenues were nearly flat last year at P104.29 billion while home broadband sales jumped 10 percent to P29.4 billion.
The company said its mobile brands were “most vulnerable to mobility restrictions given high broadband penetration.” Globe said customers were also affected by the economic recession during the pandemic, which added pressure on mobile sales.
“As restrictions ease and people get to move around more freely, the financially constrained segment can start rebuilding their spending capacity,” Globe said.
Meanwhile, Delgado said it could take time for the mobile segment to return to its prepandemic level with data usage currently split between mobile and broadband.
“We expect our mobile business to grow in step with total industry growth, which is now a low single-digit growth,” he said.
Globe earlier reported a core profit of P21.2 billion in 2021 against P19.5 billion the previous year while service revenues added 4 percent to P151.5 billion.
It also plans to spend an estimated P89 billion in capital spending for 2022 from a record P92.8 billion deployed the previous year. INQ