Globe weans away from telco reliance
The other way that it brings value to Globe is it adds to our overall market cap and market value as we create companies that may not be as profitable yet but do create significant value
Daily TribuneThe other way that it brings value to Globe is it adds to our overall market cap and market value as we create companies that may not be as profitable yet but do create significant value
Industry giant Globe Telecom Inc. is expecting to generate higher non-telco revenues in the next two to three years due to an ongoing initiative to transform into a digital solutions provider from being a traditional telco firm.
Ernest Cu, Globe president and CEO, over the weekend, said he anticipates the company's non-telco earnings to significantly grow.
"They could either be consolidated into our P and L (Profit and Loss Statement) or they could be shared as equity to a subsidiary if we become a significant minority investor," Cu said.
"The other way that it brings value to Globe is it adds to our overall market cap and market value as we create companies that may not be as profitable yet but do create significant value in terms of market valuation that will reflect in the stock price of Globe," he added.
Under Globe's transformation from telco to techno, the company leverages its diversified portfolio.
Diversification as key strategy
It has so far ventured into various sectors such as fintech, health tech, edutech, climate tech, adtech, shared services, investments and entertainment.
As of the end of the first half, Globe's non-telco revenues ballooned to P2.8 billion from P1.9 billion during the same period in 2022.
They could either be consolidated into our P and L (Profit and Loss Statement) or they could be shared as equity to a subsidiary if we become a significant minority investor.
The 52 percent year-on-year growth showed that the company's non-telco revenues now represent 3.5 percent of the company's total gross service revenues.
Globe attributed the surge in non-telco revenues to the growth across Globe subsidiaries led by ECPay and Asticom, and closely followed by AdSpark and Yondu.
Likewise, its joint ventures and affiliates have also helped grow its bottom line. The company's net share in equity gains grew by 13 percent year on year to P1.1 billion.
Particularly, Globe's share in Mynt, saw a 63 percent year-on-year increase, reaching close to P1 billion in the first half of the year.
Mynt's contribution now accounts for 5.1 percent of the Globe Group's income before tax.
