Globe ended the first half of 2024 with a 2% increase in consolidated gross service revenues, reaching P82.2 billion. This growth occurred despite challenges in the home broadband and non-telco sectors, driven primarily by robust performances in the mobile and corporate data segments.
According to Globe, these two areas combined contributed 83% of the total consolidated gross service revenues, an increase from 79% in the same period last year.
Globe’s operating expenses, including subsidies, dropped by 2% to P39.3 billion, thanks to cost-saving measures and the deconsolidation of ECPay. These efforts, along with a 2% increase in gross service revenues, contributed to a 6% rise in earnings before interest, taxes, depreciation, and amortization (EBITDA), which reached P43 billion. The company’s EBITDA margin also improved, reaching 52% compared to 50% last year.
“We are happy that our financial performance for the first half of the year remained robust,” said Ernest Cu, president and CEO of Globe. “Our EBITDA margin held steady at 52%, while Core NIAT grew by an impressive 21%, demonstrating our consistent growth and unwavering resilience amidst economic headwinds.”
The mobile business remains a key revenue driver for Globe, with mobile revenues reaching P58.4 billion by the end of June 2024, a 7% increase compared to the previous year. This was largely due to effective market strategies and sustained network quality, which has kept customer loyalty strong. Mobile revenues now account for 71% of the total consolidated gross service revenues, up from 68% last year.
The company reported a mobile data revenue surge to P48 billion in the first half, representing a 9% increase year-on-year. This growth can be attributed to the increasing reliance on mobile applications for various online activities, such as e-commerce, streaming, and social networking.
However, traditional mobile services like voice and SMS saw a decline, with voice revenues dropping by 2% and SMS revenues by 6%. In contrast, mobile data usage grew significantly, with data traffic rising to 3,256 petabytes from 2,814 petabytes last year, highlighting the ongoing shift toward data-driven services.
Corporate data
Globe’s corporate data business also experienced strong growth, with revenues increasing by 8% to P9.8 billion. This performance was boosted by a 9% increase in information and communication technology (ICT) services and a 7% rise in core data services. The company’s focus on delivering digital solutions to enterprise clients has been key in supporting this growth, as businesses continue to embrace digital transformation.
While the mobile and corporate data segments performed well, Globe’s home broadband revenues fell by 6% to P12.1 billion. This decline was primarily driven by a reduction in fixed wireless services as consumers shifted toward more stable wired connections post-pandemic. Despite the overall decline, postpaid fiber services saw a 3% increase in subscribers and revenues, partially offsetting the downturn in the broader home broadband market.
The company’s non-telco revenues also declined sharply, dropping by 58% year-on-year. This significant reduction was largely due to the deconsolidation of ECPay following Globe’s sale of a 77% stake in the company to Mynt in September 2023. However, on a comparable basis, excluding ECPay, non-telco revenues would have decreased by only 26%.
Globe’s balance sheet remains strong, with total debt improving slightly to P248.7 billion as of June 2024. The company’s key gearing ratios, such as gross debt to EBITDA, are within healthy ranges, supporting its ongoing financial stability.