Globe’s non-telco gamble paying off

MANILA, Philippines — Wireless giant Globe Telecom Inc. is reaping the fruits of its investments in non-telco segments, earning P2.6 billion from its tech ventures in 2023.

Based on its financial report, Globe made P2.6 billion in profit from its non-telco business, lifted largely by its share in GCash operator Mynt.

Globe also grew its non-core revenues by 18 percent to P4.93 billion last year, from P4.18 billion in 2022, a development attributed to the expansion of its subsidiaries.

Mynt solidified its position as the largest contributor among all affiliates, making up 7.3 percent, or P2.37 billion, of Globe’s income before taxes. Mynt operates e-wallet leader GCash, the biggest finance app in the Philippines.

GCash is eyeing to go public as soon as market conditions permit it to. For now, it is working on broadening its user base abroad, setting its sights on launching the app in the Middle East within the first quarter.

In bringing the app to the Middle East, GCash hopes to provide overseas Filipino workers in the region with an alternative remittance channel, offering them a free way to send money home.

Here on domestic soil, GCash is becoming a lending source of choice by millions of Filipinos, as it has disbursed more than P118 billion in loans as of 2023.

Meanwhile, Globe traced 1.2 percent of its pre-tax income to ST Telemedia Global Data Centers (STT GDC) Philippines and one percent to Vega Telecom Inc.

STT GDC Philippines serves as the data center builder of the telco. The company runs five data centers and is putting up an additional two: one in Quezon City and another in Cavite, with capacities of 124 megawatts and six MW, respectively.

STT GDC Philippines maintains 22 MW in capacity at present, but this will increase to 33 MW in 2025 and 52 MW in 2026. Eventually, the company will reach 150 MW of capacity, making it one of the largest suppliers in the emerging market for data centers.

Globe also owns a 50 percent share in Vega Telecom, the telco it bought out, together with PLDT Inc., from San Miguel Corp. in a P69-billion deal.