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Globe Telecom Q3 result shows mobile customer growth

Globe Telecom has achieved service revenues of ₱124 billion, a 2 percent increase both year-on-year and quarter-on-quarter, setting new records despite challenges in home broadband business.

Mobile and corporate data contributed significantly to revenues, making up 83 percent of total gross service revenues (up from 80 percent last year). Mobile revenues rose by 5 percent and corporate data by 14 percent. Data revenues account for 86 percent of total service revenues, an increase from 82 percent in 2023.

Globe Telecom said mobile revenues reached a record ₱87.7 billion, driven by market initiatives and network enhancements. The mobile subscriber base also grew, reaching 60.2 million by the end of September 2024.

Home broadband revenue dropped 6 percent to ₱17.9 billion, mainly due to reduced demand for fixed wireless services as customers shifted to fiber. Fiber revenue grew by 2 percent, reflecting demand for high-speed connectivity.

Corporate data revenue set a record at ₱15.5 billion, up 14 percent. Business applications solutions were a major growth driver, with a 31 percent increase.

Operating expenses, including subsidies, declined by 2 percent to ₱59.1 billion due to cost-saving measures and the deconsolidation of ECPay. However, expenses rose by 2 percent compared to the previous quarter.

Globe’s capex for the first nine months was ₱41.0 billion, down 24 percent. Most of the investment (91 percent) was directed toward meeting data requirements to ensure continuous digital connectivity for customers in the Philippines.

Globe’s mobile subscriber base grew by 10 percent, reaching 60.2 million as of September 2024, up from 54.7 million a year earlier. This growth was largely due to an improvement in churn rates.

Globe’s churn rate declined from 7.6 percent in 2023 to 2.0 percent in 2024, driving the net incremental gain of 3.1 million subscribers. Prepaid brands, including Globe Prepaid, GOMO, and TM, represented 98 percent of total new SIM acquisitions.

The prepaid segment, which includes Globe Prepaid and TM brands, made up 96 percent of Globe’s total subscriber base. Prepaid subscribers increased by 11 percent to 57.7 million.

Globe reversed the prior year’s net reduction of 32 million subscribers, despite a decline in gross acquisitions, marking a significant recovery.

Globe Postpaid segment experienced a 4 percent decline in its subscriber base, reaching 2.5 million by September 2024. Gross acquisitions dropped by 24 percent, resulting in a net reduction of 93,276 subscribers compared to a net gain of 29,473 in the previous year.

Globe Telecom Postpaid’s Average Revenue Per User (ARPU) grew by 6 percent to ₱901, compared to ₱848 a year earlier, and rose 5 percent quarter-on-quarter from ₱886.

Baburajan Kizhakedath

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