Globe Telecom Inc. is on track to solidify its expansion into a digital solutions platform as its affiliates and subsidiaries registered strong growth in 2021.
In a statement, Ernest Cu, Globe president and chief executive officer, said the continued rise of the company’s roster of businesses, saying they could replicate the sustained success of Mynt, operator of leading e-wallet and fintech platform GCash.
The flagship telco business, he said, remains a strong launching pad for new ventures in Globe’s expanding portfolio.
“We do think that telco continues to be a very viable platform and a good springboard for new businesses to develop much like what we’ve done with Mynt,” he said.
For one, Globe’s digital advertising agency AdSpark generated a revenue of over P1.2 billion in 2021, higher by 32 percent from full-year 2020.
RUSH, the country’s leading loyalty solutions provider, also posted more than 100 percent revenue growth versus full-year 2020. It has also grown its user base to 3.8 million, supporting businesses in their entry into the digital space.
Meanwhile, online grocery shopping platform PureGo, a partnership with Puregold, registered sales growth of over 75 percent in 2021, quickly expanding its reach. The service is now available in all cities in Metro Manila, and in Cavite, Bulacan, and Rizal.
AdSpark, RUSH, and PureGo are among portfolio companies under 917Ventures, a wholly-owned subsidiary of Globe. Other start-ups include the country’s largest e-wallet GCash and telehealth service platform KonsultaMD, which both posted stellar growth in 2021.
“Using our core telco business and spurred by rapid consumer digital adoption, we are doubling down on the shift to become a digital solutions platform. Globe currently offers several diverse high-growth enterprises in healthtech, fintech, adtech, e-commerce, e-learning, and entertainment, among others. We will continue to innovate to deliver services that empower and uplift Filipinos’ lives,” said Cu.
Globe also continues to scale up information technology solutions and services through multi-payment platform Electronic Commerce Payments Inc. (ECPay), which now has a general trade retail base of over 89,000.
Meanwhile, Globe’s corporate venture capital arm Kickstart Ventures now has $255 million aggregate assets under management, a staggering growth from $2.4 million in 2012. It focuses on media, content and advertising, fintech, and logistics tech, among others.
Globe’s wholly-owned subsidiary Asticom Technology Inc., has logged a compound annual growth rate (CAGR) of 33 percent from 2015. The shared services company has also formed four subsidiaries as it aspires to be the leading-edge local solutions provider for the telecom and technology industries. Asticom manages about 4,500 people and serves more than 120 clients from all over the country.
Globe Telecom continues to post positive numbers despite the pandemic.
In a disclosure to the Philippine Stock Exchange recently, Globe reported its net income rose 27 percent year-on-year to P23.7 billion in 2021.
The Ayala-led firm’s service revenues grew 4 percent to P151.5 billion by the end of the year, beating 2019 levels by 2 percent
For 2021, the mobile business accounted for 69 percent of service revenue, rising a percent year-on-year to P103.7 billion by year-end. Its subscriber base grew by 13 percent to 86.8 million in the period.
Globe’s home broadband segment posted a record-high P29.4 billion in revenues in 2021, expanding 10 percent year-on-year and even 2019 levels by 35 percent.