GLOBE Telecom, Inc.’s shares rose last week following an international partnership and the launch of its private fifth-generation (5G) network for enterprises.
The telecommunications company was the 13th most actively traded stock last week, with 206,520 shares amassing P469.52 billion, data from the Philippine Stock Exchange showed.
Globe stock closed at P2,300 apiece on Friday, up 6.3% from the P2,164 finish on Jan. 3. To date, the stock climbed by 5.3% since its P2,184 close on Dec. 27, 2024.
Jasper Timoteo A. Ondap, equity analyst at Regina Capital Development Corp., said in a Viber message that Globe’s heavy trading activity can be attributed to its business-to-business (B2B) 5G network rollout.
The Ayala-led company deployed the first private 5G network in the Philippines last week to accommodate secure connectivity among businesses.
“This milestone demonstrates our drive to provide cutting-edge connectivity solutions that cater to the varying needs of our clients,” said Gerhard Tan, senior director and head of technology strategy and innovations at Globe.
The network was deployed at a Globe facility in Makati City, offering tailored, high-speed, and secure connectivity solutions for specific enterprise operations.
Jash Matthew M. Baylon, an analyst at First Resources Management and Securities, said that Globe’s private B2B 5G network will be available to its clients at ports, mining, and manufacturing sectors, which could boost their operations and business flow.
“Investors were also optimistic about the company as it continued to improve its services to cope with the rapid evolution of digitalization,” Mr. Baylon said in a separate Viber message.
Mr. Ondap also said that Globe’s partnership with Ria Money Transfer bolstered its performance on the local bourse.
Electronic wallet platform GCash partnered with Euronet Worldwide, Inc. subsidiary Ria Money Transfer to serve Filipino remittance needs overseas.
Ria Money Transfer is a global cross-border money transfer platform, serving 160 countries.
The partnership enables customers using the Ria Money Transfer platform to send remittances directly to GCash wallets from users in the US, Australia, Europe, and Singapore, without the need for GCash overseas accounts.
“We’re continuing to strengthen partnerships around key corridors so we can help Filipinos wherever they may be. We are also strengthening our presence in Ria money transfer stores all over the world as a sign of our commitment to grow with Ria,” said GCash International General Manager Paul Albano in a media release on Tuesday.
Mr. Baylon said that GCash’s initiative to strengthen its partnership may increase its presence globally and introduce its services to new users.
“The continued expansion globally by GCash may serve the rising number of overseas Filipino workers in terms of their remittances which may translate to higher earnings moving forward.”
GCash services are currently available in 16 markets, including the US, United Kingdom, United Arab Emirates, Australia, Canada, Germany, Hong Kong, Italy, Japan, Saudi Arabia, Kuwait, Qatar, Singapore, South Korea, Spain, and Taiwan.
Globe owns 36% ownership interest in Mynt, the parent company of GCash.
“Mynt’s increasing contribution to earnings and strong double-triple digit growth in its subscriber base across product offerings would ramp up GLO performance,” said Mr. Ondap.
Mr. Baylon said that Globe’s revenues will increase by 3-4%, mainly driven by its expansion plans and continued rollout of its 5G and LTE services, which may attract new users.
Additionally, Mr. Ondap said that simultaneous developments in the company have had a combined effect on Globe’s performance.
“Valuation wise, when these announcements pan out and are executed, GLO is expected to ramp up its profitability and the market perceives it positively, hence, the increase of GLO’s stock price of about more than 6% this week.”
In the July-to-September quarter, Globe’s consolidated revenues rose by 1.9% to P45.12 billion, from P44.27 billion.
Meanwhile, net income attributable to the owners of the parent company was up by 21.3% to P6.02 billion, from P5 billion a year ago.
Mr. Baylon pegged his support for the stock at P2,160 and resistance at P2,400.
Mr. Ondap pegged his support level between P2,180 and 2,100 a share, and resistance at P2,390 to high P2,400. — Pierce Oel A. Montalvo
