GLOBE TELECOM, Inc. said it expects better performance in the second half of the year as gross service revenue returns to growth, signaling a more stable footing for the company.
“If one takes a look from a quarter-on-quarter perspective, gross service revenue is now back in the growth area,” Globe President and Chief Executive Officer Carl Raymund R. Cruz said at a briefing last week.
“This turnaround really indicates stability and solid footing for the company, with which we can build upon for better growth in the second half of the year,” he added.
For the second quarter, Globe’s attributable net income fell by 29.46% to P5.46 billion as weaker revenues and higher expenses weighed on earnings.
Its combined revenues for the second quarter declined by 1.92% to P43.47 billion from P44.32 billion in the second quarter of 2024, while gross expenses rose by 0.72% to P39.21 billion from P38.93 billion in the same period last year.
Quarter-on-quarter, the company’s mobile service revenues improved by 2% to P28.78 billion from P28.29 billion in the first quarter of this year.
The Ayala-led telecommunications company said it expects operational efficiency and capital optimization to drive growth in the second half.
“We’re ensuring that we have the right amount of capital for all our initiatives. This is part of our broader effort to diversify funding sources and optimize our capital structure, so we can manage the cost of funding while supporting strategic programs,” Globe Chief Finance Officer, Treasurer and Chief Risk Officer Juan Carlo C. Puno said.
For the first half, the company’s attributable net income dropped 14.5% to P12.44 billion from P14.55 billion in the same period last year, following lower revenue for the six months ending in June.
Globe’s gross revenue for the January-to-June period declined by 2.68% to P87.23 billion from P89.63 billion a year earlier.
Additionally, ST Telemedia Global Data Centres (STT GDC) Philippines said it is on track to increase its capacity to over 30 megawatts (MW) by yearend through ongoing construction.
“This expansion aligns with our strategic growth initiatives and addresses increasing market demand,” Globe said.
STT GDC Philippines, a joint venture among Globe Telecom, Ayala Corp., and ST Telemedia Global Data Centres, operates seven data centers in the country with a combined IT load of 150 MW.
The company expects to complete two new data centers — the 124-MW STT Fairview and 6-MW STT Cavite 2 — this year, with a combined investment of up to $1.56 billion.
Shares in Globe Telecom were last traded at P1,720 each, down 1.15% or P20. — Ashley Erika O. Jose
