The Globe Group closed the year 2023 with a new all-time high consolidated service revenues amounting to P162.3 billion, outpacing last year’s record level of P158.0 by 3%. This was mainly driven by the exceptional contribution from mobile, corporate data, and non-telco services. Boosted by the company’s data-centric offerings, Globe’s total data revenues as a percentage of total consolidated service revenues increased to 83% from 81% last year, with the digital lifestyle becoming an integral part of Filipino life. Also, the company’s non-telco revenues posted an 18% yearly growth and now accounts for 3% of total consolidated service revenues from 2.6% last year. This result was achieved notwithstanding the deconsolidation of ECPay from Globe’s books (with the sale of its 77% stake in ECPay to Mynt last September 20231). On a comparable basis, if we adjust the prior period assuming the deconsolidation of ECPay2, Globe’s total gross service revenues still would have grown by 3% year-on-year and quarter-on-quarter.
The mobile business continued to perform strongly, ending the year with a historic high of P112.4 billion compared to the previous record level of P107.5 billion reported in 2022. The notable 5% year-on-year improvement was largely contributed by prepaid with the pent-up demand for affordable mobile devices, alongside the increasing time spent on high-bandwidth online video services and social media content over smartphones. Total mobile revenues comprised 69% of the total service revenues, with the total mobile customer base ending (post sim registration) at 57.0 million in 2023.
From a product view, mobile data revenues peaked at P90.9 billion for the full year of 2023 or up a robust 9% versus last year’s high of P83.8 billion. Mobile data traffic likewise soared to 5,960 petabytes as of end-December of 2023, surpassing the 4,658 petabytes reported a year ago. Mobile data now accounts for 81% of total mobile revenues from 78% last year. Mobile voice and mobile SMS revenues on the other hand, ended the year 2023 at P13.5 billion and P8.0 billion, lower year-on-year by 9% and 10%, respectively.
As Globe’s information and communication technology (ICT) solutions and services continue to gain ground achieving an 14% annual increase, Globe’s corporate data revenues posted P18.3 billion or 7% better than last year, the highest in the company’s history. This sustained growth trajectory is a testament to Globe’s strong commitment to lead the digital transformation of enterprises across the country.
In contrast, Home Broadband business softened by 7% against the P27.1 billion revenues from 2022, due mainly to the drop in fixed wireless but was partly cushioned by the positive growth of postpaid fiber. Postpaid fiber subscribers and revenues posted increases of 1% and 14%, respectively, for the year. Meanwhile, the fixed wireless access revenues and operating metrics continued to normalize. Consistent with the Company’s guidance, the quarterly decline in the fixed wireless subscribers is decelerating and the downward pressure from this business is expected to ease in 2024.
Total Home Broadband subscriber count now stands at 1.8 million (post SIM registration) or down by 32% year-on-year, with HPW data traffic declining to only 289 petabytes as of end-December 2023 from 450 petabytes a year ago.
In addition, as the Globe Group continue to deliver life-enabling innovations to solve the everyday pain points of the Filipinos with an unparalleled ecosystem of products and services in the area of financial technology, virtual healthcare, e-commerce, business outsourcing, edutech, as well as media and entertainment, Globe’s non-telco revenues grew to P4.9 billion in 2023 from P4.2 billion last year.
Meanwhile, total operating expenses including subsidy stood at P80.9 billion for the full year of 2023, or 3% higher from the year earlier. 2023 remains to be a challenging year with the persistent macroeconomic and external factors causing almost all expense line items to increase. These increases were partially offset by the savings from marketing and subsidy as well as staff cost due to cost management initiatives done by the company.
Consolidated EBITDA stood at a record 81.4 billion or 3% higher from 2022 with the topline expansion of 3% offsetting the growth in operating expenses (including subsidy). This enabled overall EBITDA margin to hover around 50% which is broadly in line with the Company’s full year guidance.
However, this period’s EBITDA expansion was negated by the 4% increase in depreciation charges plus this year’s non-operating charges resulting in a 29% decline in net income of only P24.6 billion from last year’s P34.6 billion. Total non-operating income of P10.7 billion reported in 2022 included the one-time net gain of P8.5 billion (post-tax) on the partial sale of Globe’s data center business. Excluding these one-time gains, normalized net income would have been P19.1 billion, or down by 4% year-on-year.
Also contributing to the Globe Group’s bottom line was Mynt’s continued upward trajectory as GCash expands globally to empower more Filipinos here and abroad with digital financial tools and services.
