Globe maintains growth plan despite earnings dip

Despite its first-half earnings slump, Globe Telecom Inc. is pursuing sustainable growth through disciplined capital spending, asset monetization, and operational efficiencies to drive long-term value creation.

“The Q2 results indicated momentum after two consecutive quarters of decline. Our sharpened pricing strategies, segmented offers, and consistent network experience helped offset spending fatigue, particularly among prepaid users,” Globe chief commercial officer Darius Delgado said.

“We are optimistic that in the next quarters or balance of the year, this momentum shall continue,” he added.

Globe posted a first-half net income of P12.4 billion, down 14 percent from P14.5 billion in the same period last year, as higher depreciation, interest costs, and non-operating charges offset gains from its Mynt investment.

MUFG windfall

The total includes a P2.6-billion gain from MUFG’s purchase of an 8 percent stake in GCash operator Mynt, as well as higher equity earnings from affiliates. Excluding one-time gains, normalized net income fell 16 percent to P10 billion.

Gross service revenues rose 1 percent from the previous quarter on improving mobility and stronger digital engagement. Mobile remained the top revenue source, while Home Broadband grew 1 percent on stronger fiber demand.

Globe rolled out 937 new cell sites, 4,512 LTE upgrades, over 35,800 new fiber-to-the-home lines, and 444 new 5G sites, boosting outdoor coverage to 98.71 percent in Metro Manila and 98.19 percent in key Visayas and Mindanao cities, and converted more than 600 towns to full fiber.

The company is in the final phase of its tower sale and leaseback program, with 6,945 towers turned over to date, raising about P89.3 billion. Its latest deal in July sold 96 towers to MIDC and PhilTower for over P1.3 billion.