Globe’s 9-month profit jumps on gain from asset sale

Globe Telecom Inc. saw its profits rise by nearly half from January to September, thanks to gains made from the sale of its data center and tower businesses.

The telecommunications company headed by Ayala recorded a net profit of 26.5 billion pesos, an increase of 48% compared to 18 billion pesos the previous year. This was mainly due to a 3% increase in revenue to 118 billion pesos as well as the one-time net gain of 8.4 billion pesos from the sale of its data center business and the sale-leaseback transaction of 1.4 billion pesos of its tower assets.

Its basic net income, which excludes the impact of one-time charges, foreign exchange charges and market value, was 16 billion pesos for the period.

“We are pleased with Globe Group’s performance in a difficult economic climate and rapid changes in our industry. We believe our decision to pivot and expand our growth opportunities through non-telecom services has paved the way for us to remain relevant and competitive,” said Globe President Ernest L. Cu.

“We will remain committed to our promise to improve our network and deliver new products and services to meet changing market needs and support the digital empowerment of Filipinos. Looking ahead, we are confident that our digital transformation will improve the shareholder value and unlock Globe’s sustainable growth trajectory.

Globe’s mobile data business continued to carve out the lion’s share of the revenue pie, hitting a record 62.5 billion pesos from 57.9 billion pesos as Filipino consumers used 3,365 petabytes of data from January to September.

Its home broadband business, meanwhile, slipped further to 20.5 billion pesos from 22.4 billion pesos, despite customers continuing to migrate from copper to fiber.

Enterprise data revenue grew 21% to 12.5 billion pesos as companies rely on Globe for their business applications, cloud and data center needs.

Finally, Globe’s non-telecom revenues increased by 101% to reach 2.8 billion pesos due to contributions from the companies ECPay, Yondu and Asticom.

The telecom operator has so far spent 74.4 billion pesos in capital expenditure (capex), investing in data needs such as additional LTE upgrades, new 5G sites, more construction of towers and the deployment of fiber to the home.

Globe has allocated 89 billion pesos to its investment program this year to build more cell sites, upgrade existing ones, deploy 4G and 5G radios and add more fiber lines across the country.