telecommunications companies

Globe profits up 13% to P13 billion in H1 2021

Aika Rey
Data revenues continue to drive Globe's income from January to June 2021

Telco giant Globe Telecom sustained its rebound during the first half of 2021, growing its bottom line 13% to P13 billion.

This gain, however, is not rooted in revenue growth but from the lower share in equity losses and the continued impact of the Corporate Recovery and Tax Incentives for Enterprises or CREATE law that lowered corporate income tax.

Globe’s service revenues inched up 4% to P75.5 billion, with data revenues as the main driver for growth.

From January to June, Globe’s data revenues already accounted for 79% of the total. Globe sold 1,761 petabytes of data, 59% up from the same period in 2020.

Looking at its segments, mobile data grew 7% year-on-year to P38.6 billion as its users grew 12% to 38.6 million.

The home broadband segment also sustained its swift growth by 16% to P14.5 billion, given the prevailing stay-at-home rule at work and in schools. Quarter-on-quarter, however, the home broadband business was down 2%.

Laggard mobile SMS business, meanwhile, declined 17% to P4.8 billion year-on-year. The second quarter revenues for the said business also remained flat, inching up by 1% from the first quarter results.

“We are pleased to report strong financial and operating results for the first half of 2021, with healthy balance sheet and cash flows despite the reimposition of stricter lockdowns during the second quarter,” said Globe president and chief executive officer Ernest Cu.

“Going forward, we will stay focused on innovation in the areas of fintech, healthcare, education, and e-commerce, among others, to help Filipinos thrive in this pandemic and best position ourselves for the remainder of 2021 and beyond,” he added.

So far, Globe has already spent P43.3 billion for capital expenditures, with 88% of the investments going to data builds. As of June, 641 new towers were built while 8,175 mobile sites were upgraded. The telco also ramped up its 5G network with 1,759 sites nationwide.

Globe has 81.7 million subscribers as of the first semester of 2021. Telcos are also expecting movement of 1 million subscribers across networks when the Mobile Number Portability Act is implemented by end-September. – Rappler.com

Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.