Globe Telecom Inc. said Friday net income dropped 47 percent in the first quarter from a year earlier in the absence of a one-time gain.
The telecom unit of the Ayala Group said net income amounted to P7.3 billion from January to March, down from P13.7 billion a year earlier.
It said excluding the one-time gain, which related to the partial sale of Globe’s data center business, normalized net income would have been P5.1 billion, or flat year-on-year.
“We are encouraged by the results in the first three months of the year with healthy topline and EBITDA growth amidst high inflation, interest rates and other economic challenges,” said Globe president and chief executive Ernest Cu.
“Our mobile business remains fundamentally strong given the success of the programs that we have implemented empowering our customers to thrive in today’s fast-paced digital landscape,” he said.
Cu said Globe is “upbeat and optimistic about the growth prospects of our digital solutions platforms, which posted successive quarters of significant revenue gains. “
“We believe that we are well-positioned to sustain this business momentum, and unlock new areas of growth as we strive to future-proof our network, provide better customer experience, and continue with various digital innovations to achieve a better life for our fellow Filipinos,” he said.
Globe closed the first three months with consolidated service revenues of P40 billion, up 2 percent from the same period last year despite the macroeconomic headwinds.
Mobile business revenues increased 1 percent to P27.1 billion from P26.9 billion. The Home Broadband business ended the first quarter with P6.5-billion revenues, down from P7 billion a year ago.
Corporate data generated P4.5 billion in revenues, representing a 15-percent increase from the same period in 2022.
Globe set a capital expenditure budget of $1.3 billion this year, a reduction of over 30 percent from the 2022 record spending as the company shifts its focus to capital efficiency and optimization.
The company aims to further reduce its CAPEX to $1 billion as part of its efforts to optimize existing infrastructure and refocus capital deployment.