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By Arjay L. Balinbin, Senior reporter
GLOBE TELECOM, Inc. posted a 13.04% decline in its core net revenue for 2020 primarily due to the impact of the coronavirus pandemic on its businesses, except for domestic broadband.
Ayala-led publicly traded telecom company core net income for 2020, which excludes the impact of non-recurring charges, foreign exchange and market value charges, was reduced to P19.52 billion from P22.45 billion in 2019.
Annual revenues from mobile telephony, residential broadband, corporate data and fixed line voice services decreased 1.76% to P146.39 billion from P149.01 billion in the prior year.
Broken down, mobile revenues decreased 7.08% to P103.11 billion from P110.97 billion, while broadband revenues increased 23.23% to P26.80 billion from P21.75 billion.
Globe President and CEO Ernest L. Cu told a virtual press conference that the main driver of Globe’s performance in 2020 was the home broadband segment, as the majority of subscribers stayed at home.
The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) for 2020 totaled P73.51 billion, 3.31% less than P76.03 in the previous year.
Basic net income for the fourth quarter decreased 14.75% to P3.91 billion, as service revenues fell 2.90% to P37.28 billion from P38.40 billion recorded in the same period in 2019 .
Broken down, Globe saw its fourth quarter mobile revenue decline 10.31% to P25.80 billion from P28.77 billion reported in the same period in 2019, while domestic broadband revenue grew 27.75% to P7.25 thousand. million to P5.68 billion in the previous year.
The publicly traded telecommunications company saw its fourth quarter EBITDA decrease 5.05% to P17.26 billion from P18.18 billion recorded in the same period in 2019.
Mr. Cu said the company is optimistic about regaining momentum this year as the Philippine economy continues to recover.
In the same briefing, Globe CFO Rizza Maniego-Eala said the company expects its revenue to increase in the “low to medium digits” from the 2020 level.
For 2021, Globe has set a capital expenditure budget (capex) of approximately P70 billion, higher than last year’s revised investment guidance of P50 billion.
“This year will also be affected by the rebound in depreciation charges due to high capital investment programs,” the company said in an emailed press release on Wednesday.
Regarding the competition this year with the expected commercial launch of the telecommunications company DITO Telecommunity Corp., Mr. Cu said: “I think that on the mobile side, the competition will remain pretty much as it is …”
“I think where the competition will come will be on the basis of fixed lines,” he said. “With Converge (Converge ICT Solutions, Inc.) having major developments alongside PLDT, Inc. and Globe, what was once a free area for Converge to play has now become a busy area.”
Meanwhile, electronic wallet GCash, operated by Mynt (Globe Fintech Innovations, Inc.), Globe’s fintech arm, separately announced that tax payments processed on its platform last year had increased by 286. %, “Which led to about P1.5 billion in tax collection.”
Globe noted that its “lower share of Mynt’s capital losses will continue” this year.
“No further asset impairment is expected for 2021,” Globe added.
Mynt recently raised more than $ 175 million in fresh capital from investment firm Bow Wave Capital Management and its existing shareholders in multiple tranches, with a post-money valuation of the final tranches at close to $ 1 billion.
Globe Telecom shares closed 1.90% higher at P2.038 each on Wednesday. – Arjay L. Balinbin
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