GLOBE TELECOM, INC. may post a stronger fourth-quarter (Q4) performance, buoyed by seasonal increases in mobile data traffic and continued momentum in its enterprise solutions segment.
The company saw its attributable net income decline 12.8% to P5.25 billion in the third quarter from P6.02 billion a year earlier, as lower revenues and higher expenses weighed on profits.
Gross revenue for the period fell 1.68% to P44.36 billion from P45.12 billion in the same period last year.
“Our third-quarter results underscore Globe’s consistent performance and our ability to create impact beyond connectivity for more Filipino families and businesses,” Globe President and Chief Executive Officer Carl Raymond R. Cruz said in a statement on Friday.
“Looking ahead, our focus remains firmly on our customers, with our key differentiator being the ability to elevate their experience and strengthen loyalty,” he added, noting that business-to-business growth would be the company’s next catalyst for expansion.
“We remain steadfast in our vision of becoming the most valuable, trusted, and admired operator in the country in the medium term, by investing in world-class connectivity and driving innovations that help build a more inclusive and digitally empowered Philippines,” Mr. Cruz said.
For the January-to-September period, Globe posted an attributable net income of P17.69 billion, down 14.04% from P20.58 billion in the same period last year. Gross revenue fell 2.34% to P131.59 billion, while gross expenses rose 1.14% to P120.08 billion.
Mobile services remained the bulk of Globe’s revenue at P95.99 billion, followed by fixed line and home broadband services at P33.81 billion.
Globe’s equity share in Globe Fintech Innovations, Inc. (Mynt), the operator of GCash, grew 52% to P5.3 billion for the nine-month period, accounting for 25% of the company’s net income before tax.
“As GCash continues to dominate the e-wallet space and moves toward IPO readiness, Globe stands to benefit both from equity earnings and potential valuation uplift, providing a meaningful non-core growth driver heading into 2025,” said Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., in a Viber message to BusinessWorld.
He added, “Growth could also be reinforced by continued monetization of its tower and data center assets, as well as expanding contributions from its digital ventures.”
Mr. Arce noted that Globe’s fourth-quarter performance is likely to improve modestly, supported by seasonally higher mobile data traffic, stronger demand for broadband and enterprise solutions during the holiday period, and easing inflation that could boost consumer spending.
He cautioned, however, that persistent competition among telecommunications players and elevated financing costs will continue to challenge Globe’s earnings.
“Overall, while Globe’s near-term profitability remains under pressure, its diversified portfolio and consistent push into fintech, enterprise tech, and infrastructure partnerships provide a foundation for recovery over the next few quarters — positioning it for gradual earnings rebound and more sustainable growth in 2025,” he said.
Separately, Globe said on Sunday that it is expanding testing of its satellite-powered mobile services.
The Ayala-led company has partnered with global low earth orbit (LEO) satellite providers to test direct-to-cellular technology, allowing ordinary mobile phones to connect to satellites without additional equipment.
These trials aim to extend coverage to remote and hard-to-reach areas beyond traditional cell towers. Globe has already completed a pilot with Lynk Global, Inc.
At the stock exchange, shares in Globe closed P15, or 0.14%, higher at P1,460 apiece on Friday. — A.E.O. Jose