Globe Telecom Inc.’s financial arm Mynt, which operates the mobile wallet service GCash, has moved closer to profitability as it achieved positive earnings before interest, taxes, depreciation and amortization (EBITDA) as well as net income after tax (NIAT) in June this year.
As of end-June 2021, GCash has over 43 million registered users with over 2.5 million merchants and social sellers, and monthly gross transaction value already breaching P200 billion.
“More importantly, as a testament to GCash’s industry leadership, it reached a milestone by achieving positive EBITDA and NIAT last June,” Globe said.
Globe reported a net income of P13 billion for the first semester of 2021, up 13 percent from the same period of 2020, as the decline in non-operating charges and taxes fully covered for the increase in depreciation expenses.
Lower non-operating expenses this period was mainly due to the significantly lower equity share in Mynt losses, as the company moves closer to profitability, coupled with the one-time adjustment from investment in Vega related to the Corporate Recovery and Tax Incentives for Enterprises Law, according to Globe.
“We are pleased to report strong financial and operating results for the first half of 2021 with healthy balance sheet and cash flows despite the re-imposition of stricter lockdowns during the second quarter,” said Ernest Cu, Globe president and chief executive officer.
The company’s core net income stood at P13.2 billion, up by 19 percent from P11.1 billion in same period of 2020. Globe’s core net income excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges.
Globe said consolidated service revenues six months into 2021 closed at P75.5 billion, up 4 percent from P72.4 billion a year ago, amid the sustained economic challenges the country is facing.
The main growth driver continues to be data, mostly from Home Broadband, owing to the increase of digital activities among Filipinos, Globe added. Total data revenues accounted for 79 percent of total service revenues from 76 percent last year. – Myla Iglesias
