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 corporate saw its attributable net income decline 12.8% to P5.25 billion within the third quarter from P6.02 billion a yr earlier, as lower revenues and better expenses weighed on profits.
Gross revenue for the period fell 1.68% to P44.36 billion from P45.12 billion in the identical period last yr.
“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 an announcement on Friday.
“Looking ahead, our focus stays firmly on our customers, with our key differentiator being the flexibility to raise their experience and strengthen loyalty,” he added, noting that business-to-business growth could be the corporate’s next catalyst for expansion.
“We remain steadfast in our vision of becoming the most beneficial, trusted, and admired operator within the country within the medium term, by investing in world-class connectivity and driving innovations that help construct 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 identical period last yr. Gross revenue fell 2.34% to P131.59 billion, while gross expenses rose 1.14% to P120.08 billion.
Mobile services remained the majority of Globe’s revenue at P95.99 billion, followed by fixed line and residential 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 corporate’s net income before tax.
“As GCash continues to dominate the e-wallet space and moves toward IPO readiness, Globe stands to learn each 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 may be reinforced by continued monetization of its tower and data center assets, in addition to expanding contributions from its digital ventures.”
Mr. Arce noted that Globe’s fourth-quarter performance is prone to improve modestly, supported by seasonally higher mobile data traffic, stronger demand for broadband and enterprise solutions throughout the holiday period, and easing inflation that would boost consumer spending.
He cautioned, nonetheless, that persistent competition amongst telecommunications players and elevated financing costs will proceed to challenge Globe’s earnings.
“Overall, while Globe’s near-term profitability stays under pressure, its diversified portfolio and consistent push into fintech, enterprise tech, and infrastructure partnerships provide a foundation for recovery over the subsequent few quarters — positioning it for gradual earnings rebound and more sustainable growth in 2025,” he said.
Individually, Globe said on Sunday that it’s expanding testing of its satellite-powered mobile services.
The Ayala-led company has partnered with global low earth orbit (LEO) satellite providers to check direct-to-cellular technology, allowing extraordinary mobile phones to hook up with satellites without additional equipment.
These trials aim to increase coverage to distant and hard-to-reach areas beyond traditional cell towers. Globe has already accomplished a pilot with Lynk Global, Inc.
On the stock exchange, shares in Globe closed P15, or 0.14%, higher at P1,460 apiece on Friday. — A.E.O. Jose