Globe Telecom stated in its Q2 results its full-year revenue projection will be lower than expected due to continuing macroeconomic pressures, extended high inflation, and low consumer spending power.
In a statement, the Philippines operator stated service revenue for the full year 2023 has changed from “mid-single digit growth” to “mid-to-low single-digit growth” from 2022 levels.
Meanwhile, net income dropped by 27% year-on-year in H1 to PHP 14.4 billion (US$256.1 million), which was blamed on increased depreciation expense as well as the 78% decline in total non-operating income due to a one-time net gain of PHP8.5 billion from the partial sale of Globe’s data centre business last year.
Consolidated service revenues were flat at an increase of 2% to PHP80.4 billion in H1, supported by growth in data revenue across mobile and its corporate data businesses.
Mobile service revenue was flat at 1% growth to PHP54.8 billion, and 5% data growth in data cushioned double-digit declines in voice and SMS.
Globe Telecom said it does not expect the expulsion of non-active SIMs due to the government’s recent SIM registration programme to affect its future financials. Prepaid users decline 5% to 80.3 million, and post-paid subscribers stayed stable at 2.5 million.
Capex spending was cut by 25% to PHP37.7 billion. Prepaid ARPU grew 2% to PHP101, while post-paid fell 1% to PHP845.
“The Globe Group continues to perform well during the first half of the year, despite facing macroeconomic challenges. We were consistent in delivering revenue growth on our mobile and corporate data businesses. More notable, we outperformed the industry with the upbeat growth trajectory of our digital solutions platforms” said Ernest Cu, President and CEO of Globe Telecom.