Globe Starts To Reap Gains From Strategy To Go Beyond Telco
Non-telco revenues up 118%
Globe has started reaping gains from its strategic shift to go beyond telco to empower the Filipino digital lifestyle.
Globe President and CEO Ernest Cu reported that the rapid growth of its non-telco businesses is complementing the company’s strong revenue performance from telco core products and services in the first half of the year.
“When it comes to the subsidiaries, you can see them affecting our profit and loss statement now, both top line and bottom line. This remarkable progress brings Globe closer to its vision of going beyond telco. Whether through fintech, adtech, health tech, e-commerce, or entertainment, we strive to bring value to the overall digital ecosystem,” said Cu at Globe’s Q2 2022 media briefing.
Non-telco revenues soared to P1.9 billion as of end June, up 118% from the corresponding period of 2021 and contributing 2.4% to gross service revenue.
The increase was driven by growth across all of Globe’s subsidiaries. IT and e-commerce solutions ECPay and staffing solutions and shared services enterprise Asticom Group of Companies contributed the most, followed by digital and mobile marketing solutions agency AdSpark and IT solutions company Yondu.
Globe’s other joint ventures and affiliates are also adding to its bottom line, with net share in equity gains growing by 17% to almost P1 billion or 3.8% of net income before tax.
Globe’s share in GCash also improved as the platform remains to be the number one finance app in the country, having 66 million users and P3 trillion in gross transaction value for the first half of the year.
Globe’s pivot to becoming a digital solutions platform is in line with its goal to digitally enable more Filipinos as part of its commitment to innovation and infrastructure as drivers of economic growth under the United Nations Sustainable Development Goals.
Fueled by the vision of seeing a Philippines that is admired, Globe is constantly looking for new ways to enrich and empower the lives of Filipinos through digitalization. It is set to bring more exciting solutions to the market in the coming months.