Globe Telecom Inc. said over the weekend net income fell 27 percent in the first nine months of 2023 from a year ago on increased depreciation expenses and higher non-operating charges.
The telecom unit of the Ayala Group said net income amounted to P19.36 billion from January to September, down from P26.5 billion it earned in the same period last year.
The company blamed lower profit 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.”
It said excluding the one-time gain, normalized net income would have been P14.8 billion, or down by 11 percent from the previous year.
Globe said third-quarter profit also went down by 12 percent to P4.98 billion from P5.7 billion a year earlier.
Core net income, which excludes the impact of non-recurring charges and foreign exchange and mark-to-market charges, closed at P14.8 billion in the first nine months, lower by 8 percent than P16.01 billion in the same period in 2022.
“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 [technology company] 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, “ Globe president and chief executive Ernest Cu said.
“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,” he said.
Globe Group closed the first nine months of 2023 with all-time high consolidated service revenues of P121.1 billion, up 3 percent from P117.95 billion a year ago, despite the extended macroeconomic headwinds faced by the industry.
It said the performance fueled by the strong contributions from its mobile, corporate data and non-telco services, which fully offset the anticipated decline in home broadband.
Globe’s non-telco revenue grew 44 percent to P4.1 billion from P2.8 billion last year on improved revenues across subsidiaries led by ECPay, Adspark, Asticom and Yondu.
Mobile business revenues hit a record P83.2 billion, up 3 percent from P80.6 billion reported in the same period last year.
Home broadband business generated P19 billion in revenues, down by 7 percent from last year’s P20.5 billion. Total home broadband subscribers now stand at 1.7 million (post SIM registration), or down by 35 percent from the previous year with the expected normalization of the fixed wireless base as the market shifts to a more reliable wired connectivity.