Globe’s consolidated gross service revenues increased by 3% to P41.1 billion in the first quarter of 2024, driven by significant growth in its mobile and corporate data businesses. This uptick occurred despite declines in home broadband and non-telco services.
The strong performance was primarily attributed to mobile revenues, which rose by 8%, and corporate data revenues, which climbed by 10%. These segments together accounted for 83% of the company’s revenue. Data revenues, in particular, saw a notable increase, constituting 85% of total revenues compared to 82% the previous year.
Globe’s mobile business showcased resilience amid challenging economic conditions, recording P29.1 billion in revenues by the end of March 2024, up from P27.1 billion in the same period last year. This growth was attributable to Globe’s focus on network quality and service differentiation, leading to a customer base expansion to 58.8 million mobile users. Mobile data revenues increased by 10% to P23.8 billion, reflecting Filipinos’ growing reliance on mobile devices for activities like online shopping, streaming, and social media. Correspondingly, mobile data traffic surged to 1,610 petabytes from 1,352 petabytes in the previous year.
Traditional mobile voice and SMS revenues, however, saw slight declines, dropping by 2% and 3% respectively, ending at P3.4 billion and P1.9 billion.
The corporate data segment also demonstrated robust growth, with revenues rising 10% year-on-year to approximately P5 billion. This was driven by a 12% growth in core data services and a 7% increase in information and communication technology (ICT) services.
Operating expenses
Home broadband revenues fell by 6% to P6.1 billion from P6.5 billion a year earlier, largely due to a decline in fixed wireless services. However, postpaid fiber, which comprises 84% of the home broadband segment, experienced positive growth, with a 3% increase in both subscribers and revenues.
The company reported that its fixed wireless revenue decline is decelerating, a trend expected to stabilize with the introduction of GFiber Prepaid. The GFiber Prepaid service has been well-received since its launch, with a 53% growth in acquisitions in Q1 and a threefold increase in April, suggesting continued positive growth.
Globe’s operating expenses, including subsidies, rose slightly to P19.8 billion from P19.5 billion a year earlier. Cost-saving measures were balanced by increases in leases, repairs, maintenance, staff costs, and administrative expenses. Despite this, Globe’s consolidated EBITDA increased by 4% to P21.4 billion, and its EBITDA margin improved from 51% to 52%, reflecting the company’s commitment to operational efficiency.