Globe earnings drop by 14% to P 17.7B

Globe Telecom Inc.’s profits continue to hit a rough patch, chalking up a 14-percent decline in net earnings dragged down by lower revenues, higher depreciation and financing costs.

In a disclosure on Friday, Globe said its net income dropped to P17.7 billion from last year’s nine-month period earning of P20.6 billion.

This was despite the easing inflation and increase in household spending capacity in the recent months.

“Persistent industry competition and the localized economic impact of the typhoons that struck during the period added further pressure,” the telco said in a statement.

The three-quarter bottom line includes non-recurring gains coming from the deemed disposal of shares in Mynt—the parent firm of e-wallet platform GCash— and higher equity earnings from affiliates.

“Mynt continued to be a key contributor to earnings, reaffirming the expanding role of our digital platforms. Together, these pillars demonstrate how Globe continues to drive sustainable growth and long-term value through innovation, disciplined execution, and a deep commitment to the communities we serve,” said Carl Raymond Cruz, president and CEO of Globe. These helped partly offset increased depreciation, interest expense,and other non-operating charges.

Excluding such one-off items, normalized net income reached P15.2 billion, down 15 percent.

Meanwhile, core net income—which strips out non-recurring items including gains from asset disposals, forex movements and mark-to-market adjustments —slid down by 11.9 percent to P15.5 billion, compared to P17.6 billion.

Across all segments, the Ayala-led telco said that its mobile business was the main contributor to its top line. This was recorded at P86.2 billion, down 2 percent from P87.7 billion previously.

“We remain steadfast in our vision of becoming the most valuable, trusted and admired operator in the country in the medium term, by investing in world-class connectivity and driving innovations that help build a more inclusive and digitally empowered Philippines,” Cruz said.

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Still, Globe said it reduced its cash capital expenditures by 23 percent to P31.4 billion from P41 billion.

Globe said the decrease reflects its “sharper focus on strategic capital management while continuing to channel resources toward essential network improvements, in line with its full-year capex guidance of below $1 billion.”

From January to September this year, Globe built 1,375 new cell sites, upgraded 8,699 existing ones and rolled out 60,193 fiber-to-the-home lines.

Globe also reinforced its 5G footprint, rolling out 877 new 5G sites across the country.