Sans one-off gain, Globe income dips by 47%

MANILA  -Despite posting a revenue growth, Globe Telecom Inc. recognized a 47-percent decline in net income during the first quarter in the absence of a one-off gain that it had previously booked from the monetization of assets.

The Ayala-led telco reported net earnings attributable to equity holders of the parent company amounted to P7.25 billion in the January to March period, lower than the P13.65 billion it registered in the same period last year.

Total revenues climbed by 3 percent to P45.03 billion from P43.56 billion a year ago.

“The continued top line growth was mainly fueled by the steady rise in data revenues in step with the increasing use of technology and digitalization in work, business and other aspects of daily life among Filipino consumers,” Globe said.

The first quarter was without a gain on sale, which bloated bottom line previously. To recall, Globe sold last year a controlling interest in its data center for P10.51 billion.

Mobile business revenues for the first three months inched up by 1 percent to P27.1 billion while home broadband contributed P6.5 billion in revenues, a dip from P7 billion a year ago.

Corporate data segment saw revenues improve by 15 percent to P4.5 billion amid the momentum from information and communication technology services.

Also during the period, Globe spent P17.6 billion in capital expenditures for its data infrastructure expansion.

It built 220 new cell sites and upgraded over 3,000 mobile sites to LTE. Globe now has 97.21-percent 5G outdoor coverage in the National Capital Region and 90.28 percent in the key cities of Visayas and Mindanao.

Globe recently completed transferring 132 towers to Phil-Tower Consortium under a sale and lease back deal.

The telco has several tower deals covering 7,059 towers amounting to P91 billion. Globe has received P40.5 billion so far, with total transactions already 44-percent completed.

“We believe that we are well-positioned to sustain this business momentum and unlock new areas of growth as we strive to future-proof our network, provide better customer experience and continue with various digital innovations to achieve a better life for our fellow Filipinos,” Globe president and CEO Ernest Cu said.

—Tyrone Jasper C. Piad

READ MORE:

https://business.inquirer.net/385485/globe-2022-earnings-surge-on-record-high-sales

https://business.inquirer.net/386437/globe-secures-p39b-so-far-from-sale-of-towers

https://business.inquirer.net/377251/globe-to-cut-network-spending-next-year-after-record-investments-in-2022