Globe’s net income down 5% in H1

MANILA, Philippines — Globe Telecom Inc. posted lower earnings and revenues in the first half as mobility restrictions implemented due to the COVID-19 pandemic took its toll on its business operations.

Globe said consolidated net income fell by five percent in the first semester to P11.5 billion from P12 billion in the same period last year, while core net income, which excludes the impact of non-recurring charges, one-time gain, foreign exchange gains and mark-to-market charges, declined eight percent year-on-year to P11.1 billion.

The Ayala-led telco finished the first half with total operating revenues of P78.8 billion, down three percent from the P81.5 billion last year, mainly due to the impact of the community quarantines to its business operations.

Globe’s consolidated service revenues for the six-month period dipped one percent to P72.4 billion, while non-service revenues plunged 26 percent year-on-year.

Globe said total data revenues, which now account for 75 percent of total service revenues, was again the top revenue contributor during the first half given the surge in consumption as customers stayed in their homes and shifted into online activities.

“While we expect revenues for full year 2020 to decline by low single digit against last year, given the impact of community quarantine restrictions, we do see growth opportunities on the home broadband front and ICT space,” Globe president and CEO Ernest Cu said.

“Higher demand for internet connectivity and cloud solutions are expected as companies have been forced to embrace remote working for employees and to fast-track their digitalization efforts. Mobile data and digital solutions will also increase traction with more customers adopting a digital lifestyle in the new normal,” he said.

Globe said it has invested P20.9 billion in its network in the first half, 10 percent higher than last year.

The telco said its revised capex guidance for 2020 is estimated to be P50.3 billion, lower than the original guidance of P63 billion given the delays in the rollout during the ECQ/MECQ period.

“Globe’s network has withstood and continues to prove its resilience during this COVID-19 pandemic. Our priority to keep our network up to speed has allowed us to continuously serve our customers and ensure that communities stay connected during these tough times,” Cu said.