Globe Telecom Inc.’s net income dropped 27 percent to P19.4 billion in the first nine months of the year from P26.5 billion in the same period last year due to increased depreciation expense and one- time gain on partial sale of its data center business in 2022.
Excluding the one-time gain, Globe said its normalized net income would have been P14.8 billion, or down by 11 percent compared to the previous year P16.7 billion.
Globe’s core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, dipped 8 percent to P14.8 billion versus the same period last year’s P16 billion.
Globe closed the first nine months of 2023 with an all- time high consolidated service revenue amounting to P121 billion up 3 percent from P118 billion despite the extended macroeconomic headwinds faced by the industry.
This is mainly fueled by the strong contribution from its mobile, corporate data and non telco businesses which reported revenue growth by 3 percent, 8 percent and 44 percent, respectively.
The growth of these business segments offset the 7 percent decline in home broadband revenues to P18.9 billion in the first nine months versus last year’s P20.5 billion revenues.
In third quarter, Globe service revenues and core net income were up by 1 percent to P40.7 billion and P4.8 billion, respectively, versus the previous quarter.
“Our third quarter results show that our telecom business performance is very much aligned to the guidance we have set. On the other hand, our pivot to a techco business is showing signs of momentum. We are happy that more of the non-telco businesses are contributing to the Group’s overall business growth and resilience. We will continue to look for opportunities to thrive amidst the macroeconomic challenges and competition. We believe that our renewed focus on innovation, collaboration, sustainability and service, backed by our unwavering commitment to network excellence are the imperatives that will keep us ahead and will pave the way for a digitally inclusive and prosperous Philippines,” said Ernest Cu, Globe president and chief executive officer.
Globe’s consolidated earnings before interest, taxes, depreciation and amortization (EBDITDA) reached a record P60.7 billion or 1 percent above year-on year as the 3 percent topline expansion was partly cushioned by the 5 percent surge in operating expenses. EBITDA margin stood at 50 percent this period, remains within Globe’s guidance for the year.
