Globe Telecom records profit, revenue boost

Globe Telecom records profit, revenue boost

Globe Telecom recorded profit and revenue gains in 2022 but will bring down capex and operating expenses in 2023.  

The operator stated capex at the end of its 2022 financial year peaked at PHP101.4 billion (US$1.9 billion) a 9% year-on-year rise. Total operating expenses stood at PHP78.9 billion, a rise of 2% from a year ago. The operator noted 2022 was a “challenging year with several macroeconomic and external factors” forcing almost all operating expenses to increase.

Mobile service revenue which accounts for 68% of consolidated service revenues, was up 3% to PHP107.5 billion, boosted by a 25% surge in mobile traffic data. Data services grew 8% while declines were seen in voice (13%) and SMS (5%) revenue. Net income reached PP34.6 billion up from PHP23.7 billion, a 46% surge.

The operator built 1,702 new cell sites and upgraded 13,600 mobile sites to LYTE and installed 2,267 5G sites across the country.

Globe Telecom predict a contraction in subscriber numbers due to the government’s SIM registration mandate, as non-active SIM cards ate churned out of the network. But it does not expect the top line to be affected and will result in improved ARPU and active subscriber numbers.

In a statement, Globe Telecom CEO Ernest Cu said: “Despite 2022 being a challenging year marked by inflationary pressures, high-interest rates and weakened consumer confidence,

“Globe once again showed resilience. We are happy that the Globe Group closed the year with strong top-line and EBITDA growth. We also achieved momentous milestones in 2022 where we closed the country’s largest-ever tower sale and leaseback agreement.

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