GLOBE TELECOM, Inc. on Monday said it expects 2023 to be a challenging year, citing inflation as among the major pressures to overcome.
“It’s not going to be an easy turn from 2022 to 2023. There are some headwinds, and I think those would be quite challenging to overcome,” Globe Chief Finance Officer Rizza Maniego-Eala said at a briefing.
“But there are some positive sides that the company can use, both from the topline and expense sides. Those are what we are seeing as we complete our budget for 2023,” she added.
According to the Philippine Statistics Authority (PSA), annual inflation accelerated to its fastest pace in almost 14 years in October, as food prices rose as a result of the recent typhoons. Headline inflation quickened to 7.7% last month, from 6.9% in September and 4% in October 2021.
Globe’s Ms. Maniego-Eala said the company is already seeing inflation hit the wallets and spending ability of its lower-end customers.
She said that Globe is interested to see if remittances will drive Christmas spending and “whether there will be additional savings from our customers that would flow into top-ups and connectivity spending.”
Globe’s attributable total comprehensive income for the third quarter reached P5.7 billion, up 16% from P4.9 billion in the same period a year ago.
The company attributed the results to revenue growth in its corporate data and mobile services, as well as non-telco services.
Third-quarter revenues, both service and non-service, grew 3% to P42.9 billion from P41.7 billion previously.
For the nine months ended Sept. 30, Globe saw its attributable total comprehensive income increase 37% to P24.9 billion from P18.2 billion previously.
Total revenues for the period went up 3% to P130.2 billion from P126.4 billion in 2021.
The growth was “led by corporate data and mobile services, supplemented by the sustained growth from non-telco services,” Globe said in a statement.
However, revenues from its home broadband business decreased further in the third quarter. Nine-month revenues reached P20.5 billion, lower than the previous year’s P22.4 billion.
“Total home broadband subscriber count now stands at 2.7 million or down by 27% year on year,” Globe noted. — Arjay L. Balinbin