GLOBE Telecom, Inc. saw its first-quarter (Q1) attributable net income rise by 2.65% to P6.98 billion, driven by contributions from its e-wallet platform GCash, the Ayala-led telecommunications company said.
“Notwithstanding our first-quarter results, we remain steadfast in driving our strategic agenda forward and unlocking greater operational efficiency across the business,” Globe President and Chief Executive Officer Carl Raymond R. Cruz said in a media release on Sunday.
Globe’s first-quarter net income was fueled by equity earnings from affiliates, especially from Globe Fintech Innovations, Inc. (Mynt). Mynt, a unit of Globe, is the holding company of the e-wallet platform GCash.
To recall, Mitsubishi UFJ Financial Group (MUFG) acquired an 8% stake in Mynt, which helped offset the impact of higher depreciation, increased interest expenses, and other non-operating charges, Globe said.
Globe said Mynt expanded its user base and profitability, with Globe’s share in Mynt’s equity earnings surging to P1.8 billion in the first three months of the year, an 86% increase from the P962 million in the same period last year, which also accounts for 22% of Globe’s pre-tax net income.
Excluding one-off items, such as gains from the deemed disposal of Mynt and tower sales, Globe’s core net income would have decreased by 22% to P4.5 billion for the first quarter, compared with P5.8 billion in the same period last year.
For the first quarter, Globe’s combined revenue declined by 3.42% to P43.76 billion from P45.31 billion a year ago.
Broken down, service revenues, which account for the majority of Globe’s total topline, dropped by 3.16% to P39.85 billion from P41.15 billion previously, while non-service revenues fell by 6.25% to P3.9 billion from P4.16 billion.
Costs and expenses also surged for the period to P40.54 billion, marking an increase of 2.1% from P39.72 billion in the first quarter last year.
“While acknowledging the maturity of the telecommunications industry, we are particularly encouraged by the opportunities for growth in other significant verticals, notably the enterprise sector and the strong growth momentum of our GFiber Prepaid, all while maintaining our position as the number one mobile network in the Philippines,” Mr. Cruz said.
Globe’s capital expenditures for the period reached P8.5 billion, 38% lower than P13.7 billion last year, it said, noting that this is part of the company’s continued effort to optimize capital allocation while also maintaining strong network investments.
At present, Globe has officially turned over 6,849 out of the 7,506 towers included in its sale-and-leaseback portfolio, which generated P87.9 billion in proceeds.
Further, Globe continues to focus on the rollout of 5G, with 235 new sites deployed nationwide. To date, the company reaches 98.71% of the National Capital Region and 97% of key cities in the Visayas and Mindanao.
On Friday, shares in Globe fell by P20, or 1%, to close at P1,980 apiece. — Ashley Erika O. Jose
