LEADING digital solutions group Globe sustained revenue growth in the first quarter of the year on the back of easing pandemic restrictions, posting record-high consolidated revenues of P39.2 billion, higher than pre-pandemic levels.
Globe saw a four-percent consolidated revenue growth at the close of March, a rise from P37.8 billion the same quarter last year amid gains from data-related products and services with sustained Internet use and improved mobility.
Globe’s gross service revenues were also higher by three percent than the fourth quarter of 2021. Total revenues across mobile, broadband, and corporate data accounted for 81 percent of total service revenues, up from 79 percent last year.
“We are pleased to report that our top-line growth momentum was sustained. We saw encouraging results, particularly in the mobile business, as pandemic restrictions eased and the economy opened up,” said Ernest Cu, Globe president and chief executive officer.
As of end-March 2022, mobile business revenues comprised 69 percent of overall service revenues, improved by two percent from last year’s P26.3 billion, mostly from prepaid brands. Mobile customers are now at 87.4 million, or 10-percent higher than the previous year.
However, the Home Broadband business showed a four-percent year-on-year decline, although still better than pre-pandemic levels. From the P7.4 billion generated as of end-March 2021, it went down slightly to P7.0 billion for the same period this year.
This was primarily due to the continued transition and migration of the broadband subscriber base to fiber, particularly those using Home Prepaid WiFi. The decline in Fixed Wireless products fully offset the sustained growth from the fixed wired segment.
Total Home Broadband subscriber count now stands at 3.5 million, down by 15 percent year-on-year. As of end-March of 2022, Home Prepaid WiFi data traffic likewise decreased to 138 petabytes from 211 petabytes the year before.
On the other hand, Globe’s strong commitment to deliver fiber technology to more homes in the country resulted in an increase in fiber revenues and subscribers against last year by 165 percent and 155 percent, respectively.
Meanwhile, Corporate Data revenues posted double-digit growth at 18 percent to reach an all-time high of P3.9 billion this period from P3.3 billion a year ago. Its solid revenue performance was mainly driven by the growth of information and communication technology (ICT) businesses, particularly business application services and cloud solutions, and supported by the sustained growth of domestic services.
Globe’s total operating expenses, including a subsidy of P19.5 billion for the first three months of 2022, remained relatively unchanged from the same period last year. This period’s higher spending on utilities, interconnect costs, staff costs, maintenance, and services was fully offset by lower ads, promos, leases, provisions, and taxes.
Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the first three months of the year stood at P19.7 billion, up eight percent versus the same period of 2021 due to the four percent improvement in the topline and the relatively flat operating expenses and subsidy.
As a result, EBITDA margin for the period rose to 50 percent from last year’s 48 percent. With higher EBITDA and lower non-operating expenses, which fully offset the increase in depreciation charges, net income reached an all-time high of P13.7 billion, or 86-percent higher than the P7.3 billion reported a year ago.
Lower non-operating expenses during this period were mainly due to the net gain of P8.5 billion on the partial sale of Globe’s data center business. Excluding this one-time gain, normalized net income would have been P5.1 billion, or up by two percent year-on-year.
Core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, ended at P5.1 billion for the quarter. Similarly, normalized core net income was kept flat year on year.
Globe’s balance sheet remained strong and geared comfortably within bank covenants despite increased debt from P210.1 billion as of end-March 2021 to P217.7 billion this year.
Globe’s gross debt-to-equity is at 1.75x while gross debt-to-EBITDA is at 2.40x. Net debt-to-equity ratio is 1.63x, net debt-to-EBITDA is at 2.24x, and debt service coverage ratio is 7.06x.
To learn more about Globe, visit www.globe.com.ph. (PR)