Globe 2022 profit jumps on asset sales

Ayala-led Globe Telecom finished 2022 with earnings surging 46 percent to P34.6 billion on the back of strong mobile revenues coupled with one-time net gains.

Excluding one-time gains from the partial sale of its data center business as well as from the sale and leaseback of its tower assets, Globe’s normalized net income would have increased 13 percent year-on-year to P20 billion.

Core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, fell 10 percent to P19.2 billion.

“Despite 2022 being a challenging year marked by inflationary pressures, high interest rates and weakened consumer confidence, Globe once again showed resilience,” Globe president and CEO Ernest Cu said.

Globe’s EBITDA stood at a record P79.1 billion, six percent higher than the previous year with topline expansion offsetting the growth in operating expenses.

Consolidated service revenues reached an all-time high of P158 billion, up four percent year-on-year.

Globe said corporate data and mobile services, complemented by the continuous growth from non-telco services, drove the topline expansion as more Filipinos adopt the digital lifestyle.

Its mobile business recorded the second highest revenue in company history at P107.5 billion, which came mostly from prepaid with greater public mobility and the resumption of face-to-face classes and work.

Home broadband revenue, on the other hand, declined by eight percent to P27.09 billion, with subscriber count dropping 30 percent year-on-year to 2.6 million.

Corporate data, meanwhile, posted an all-time high revenue of P17.2 billion, an increase of 21 percent due , driven by the strong traction from information and communication technology services as more companies rely on business application, cloud, and data center service.

“As we strive to future proof our network performance, provide better customer experience, and continue with various digital innovations to address the everyday pain points of our fellow Filipinos, we are optimistic that our beyond-telco initiatives will help enable the Philippines to become a truly digital nation,” Cu said.