MANILA, Philippines — Ayala-led Globe Telecom Inc. eyes to sustain the growth of its non-telco segment in the second semester, as it strengthens its foundations in going beyond telco services moving forward.
Globe president and CEO Ernest Cu yesterday said the telco giant is showing signs that its non-telco units are growing as much as its traditional offerings.
For instance, non-telco revenues more than doubled to P1.88 billion in the first semester from P859 million a year ago, on improved contributions from Adspark, Yondu and Asticom.
Further, Globe’s other affiliates and joint ventures added to its bottom line, growing its net share in equity gains by 17 percent to almost P1 billion. Revenues from non-telco enterprises contributed 2.4 percent of Globe’s gross income.
“When it comes to subsidiaries, you can see them affecting our profit and losses statement now, both top line and bottom line. This remarkable progress brings Globe closer to its vision of going beyond telco,” Cu said.
“Whether through fintech, adtech, health tech, e-commerce, or entertainment, we strive to bring value to the overall digital ecosystem,” he said.
Similarly, Globe’s share in e-wallet leader GCash improved as the finance app remains to be the leader in the Philippine market.
For the first half, GCash recorded a user base of 66 million and a gross transaction value of P3 trillion.
For 2022, Globe plans to spend P89 billion for its capital expenditures to enhance fiber assets, build new cell sites, upgrade towers to 4G and LTE and expand 5G capability.
As such, Globe’s capex to revenue ratio stays elevated, posting one of the highest reinvestment ratios in Asia.
The Ayala-led telco plans to make additional investments on network expansion for the rest of the year. As part of this, Globe wants to enhance its digital ventures to capitalize on its non-telco portfolio moving forward.
“We are consistently delivering value to our customers and uplifting lives through connectivity or other digital solutions,” Cu said.
“As we expand our digital strategy, we will continue improving our network and service delivery, even as we manage our costs,” he said.