Globe Telecom Inc. saw its profits plunge by more than a quarter in January to September despite posting all-time high consolidated service revenues due to higher depreciation costs and a non-operate charge versus last year.
The company said in a statement that its net income during the period dropped by 27 percent “due to the increased depreciation expense as well as this period’s non-operating charges versus last year’s non-operating income which included the partial sale of Globe’s data center business.”
“Excluding this one-time gain, normalized net income would have been P14.8 billion, or down by 11 percent compared to the previous year,” the company said.
It closed the period ending September with all-time high consolidated revenues of P121.1 billion, up by 3 percent from a year prior “despite the extended macroeconomic headwinds faced by the industry.”
“This remarkable performance was mainly fueled by the strong contributions from its mobile, corporate data, and non-telco services, which fully offset the anticipated decline in home broadband,” the company said.
Meanwhile, Globe’s total operating expenses including subsidy as of the nine-month period of 2023 amounted to P60.4 billion, up from P57.6 billion reported last year.
“The group continued its efforts to control costs as evidenced by lower marketing and subsidy, lease, and provisions. However, these savings were fully offset by increases in repairs and maintenance, services and others, as well as administrative expenses.”
Its core net income was also down by 8 percent to P14.8 billion.
“Our third quarter results show that our telecom business performance is very much aligned to the guidance we have set. On the other hand, our pivot to a techco business is showing signs of momentum. We are happy that more of the non-telco businesses are contributing to the Group’s overall business growth and resilience.
We will continue to look for opportunities to thrive amidst the macroeconomic challenges and competition. We believe that our renewed focus on innovation, collaboration, sustainability and service, backed by our unwavering commitment to network excellence are the imperatives that will keep us ahead and will pave the way for a digitally inclusive and prosperous Philippines,” Globe President Ernest L. Cu said.
