Having made a record investment of ₱51 billion, we have made strong strides aligned to our vision of redefining the customer experience, enabling last-mile connectivity and vitalizing the digital economy of the country. We were able to deliver strong financial performance while making a substantial positive impact on our society and environment.
Our company emerged with strong performance despite market changes, the domestic and global economic slowdown of the economy. We posted a service revenue of ₱149 billion, 12% higher compared to 2018. This growth was primarily fueled by the gains we were able to make from data services spanning mobile, broadband, and corporate data services. Total data revenues at the end of 2019 accounted for 71% of total service revenues, evidencing more Filipinos embracing a digitally enabled lifestyle.
IMPROVED CAPABILITIES ON SERVICES
It is a matter of immense delight that today, we are the service provider of choice for over 96 million customers nationwide. This positions us as an important player in connecting minds and inspiring ideas across the Philippines through digitization.
With an increasing customer base and emerging customer needs, we made substantial investments towards building our infrastructural prowess. As of December 2019, we put up 139% more sites and 28% more 3G and 4G base stations compared to 2018. These investments have translated to more customers enjoying higher data speeds, specifically improved LTE download and upload speeds, and lower latency as confirmed by a third-party network quality test provider.
We have also extended our partnerships with leading providers of content, mobile messaging, social media, and other popular OTT applications to provide products and services that anticipate and cater to shifting customer preferences. As our customers realize the potential of digitization, our service proposition will focus on “owning our customers” through superior service experience. We anticipate enhanced customer delight, given our improved service delivery capabilities coupled with unique offerings encompassing personalized plans and attractive product/device bundles.
LIVING OUT OUR PURPOSE
For us at Globe, the true value we create lies in the impact we have on the lives of people: our customers, employees, business associates, suppliers, vendors, and Filipinos at large.
Our employees are at the forefront of helping us achieve our goals and vision of ensuring that we create value for all our stakeholders. They share our desire to do sustainable practice and are key to furthering our sustainability agenda. We make it known to our employees that the ideas and innovation they bring to the company are central to the success we achieve year on year. In recognition of our employee-centric organizational culture, we have achieved a score of 91% on the Sustainable Engagement score in 2018 (net of retention score) and a score of 88% on the Organizational Health Index Score in 2018.
Globe aspires to be an industry leader with purpose, helping customers discover new ways to enjoy life. As a company driven by passion and purpose we are proud to share the result of our Purpose Survey with three Purpose Index Indicators as follows: (1) Role and Work contribution to Globe Purpose: 91 in 2019 vs. 87 in 2018; (2) Persona Purpose contribution to Globe Purpose: 88 in 2019 vs. 87 in 2018; (3) Employer NPS is the likeliness to recommend Globe as an EMPLOYER: 53.40 vs. 43.38 in 2018. The Purpose Survey serves as a gauge to determine how our employees resonate with Globe Purpose and their insights on factors that contribute to how they can live out Purpose in Globe e.g. culture, clarity, and ways of working.
NEW DIGITAL BUSINESSES
Aside from our employees, our business partners, vendors, and suppliers play a vital role in furthering our business in a sustainable manner. We have formed an ecosystem that creates a mutually inspiring atmosphere to achieve greater integration of sustainability in business.
This year we reinforced our position as a change agent leading Filipinos to digitally enabled lifestyle by incubating, developing, and operating new non-telecom businesses. By leveraging Globe’s strengths and assets, these startups are nurtured by Globe to maximize the value they generate.
We launched our subsidiary Globe Capital Ventures Holdings (GCVH) to 917 Ventures, a wholly owned subsidiary of Globe that houses Globe Fintech Innovations (Mynt), the company that operates mobile wallet GCash, as well as digital advertising firm AdSpark Holdings and telehealth firm, KonsultaMD. 917 Ventures will now hold all of Globe’s incubated products and services that are beyond telecommunication.
Globe’s push for new digital businesses is seen to play an important role in actualizing the company’s vision while sealing its future growth trajectory. Through this initiative, we are confident that the Philippines can catch up with the rest of the region in terms of ICT adoption, especially in areas of great importance like advanced medicine, health and wellness, delivery of basic services, and education.
DEPLOYING GREEN NETWORK SOLUTIONS
As natural resources play an indispensable role in the well-being of the society, we strive to conduct our expansion and capability building in a manner that exerts a minimum impact on the environment. We strive to find innovative avenues to offset the impact we could have on the environment.
We have focused on deploying green network solutions and have rolled out almost 7,000 solutions in 2019. Indeed, we are now living in times where we are experiencing the impacts of climate change. We have worked towards instating a robust Business Continuity Management Plan to mitigate the risks arising from extreme weather events and climate-linked risks. We are also actively contributing to climate change mitigation. For instance, we have been able to save over 650 tons of paper through customers shifting to paperless billing. In addition, by automating and migrating to a paperless process, we were able to save over 20 tons of paper, equivalent to saving 480 trees.
We also institutionalized the avoidance of Single-Use Plastics (SUP) in our office and engaged our concessionaires to look for SUP alternatives. Last September, we held the Plastic Exchange Program in seven barangays in Metro Manila in partnership with Ayala Land and Green Antz, where 31,419 pieces of single-use plastic waste were collected, which were turned into 24,500 ecobricks by Green Antz Builders, Inc.
WHAT LIES BEYOND 2019 FOR GLOBE
In 2019, Globe became a signatory to the United Nations Global Compact, and we commit to implement universal sustainability principles and integrate these into the business. For the global telecom sector, interesting and promising times lie ahead.
To sustain the momentum we have gained, we will ramp up infrastructure to improve network experience with a committed spending of ₱63 billion in capital expenditures in 2020. Our acquisitions and partnerships in the areas of electronic payments (EC Pay) and information technology (Yondu) point toward how we intend to grow new businesses by leveraging our core assets. For 0917 Lifestyle, we are excited for next year, as we expand outside our Globe stores and online shop to open our first flagship 0917 Store in Makati. Our flagship store will be carrying our exclusive Vanguard collection—infusing Fashion and Tech in our Apparel collection, as well as key collaborations to give life to our vision for 0917 to become a Fashion and Tech Brand that consumers desire.
I hope you find this integrated report informative, relevant, and engaging. This report will enable you to understand our shared value creation story and approach toward entrenching the culture of sustainability in our business endeavors.