Philippines-based Globe Telecom lowered its full-year revenue growth target, highlighting extended macroeconomic pressures including rising inflation which weakened consumers’ purchasing power.
Its service revenue growth forecast for 2023 was changed from a mid-single digit to a mid-to-low single digit figure. In addition to general economic factors, the operator stated the adjustment was spurred by a continued decline in its legacy broadband business.
Net profit in H1 fell 27 per cent year-on-year to PHP14.4 billion ($256.1 million), attributed to increased depreciation expenses and a decline in non-operating income due to a one-off gain of PHP8.5 billon from the partial sale of its data centre business in the same period in 2022.
Consolidated operating revenue rose 3 per cent to PHP89.5 billion, backed by data growth across its mobile and enterprise businesses.
Mobile service revenue grew 1 per cent to PHP54.8 billion, with 5 per cent data growth offsetting double-digit declines in voice and SMS.
Its prepaid user base declined 5 per cent to 80.3 million, due to a government SIM registration initiative. Post-paid subscribers remained at 2.5 million.
While non-active SIMs are churned out of the system, resulting in lower prepaid subscribers, the company does not expect any impact on its top-line.
Prepaid ARPU rose 2 per cent to PHP101 and post-paid number fell 1 per cent to PHP845.
Home broadband revenue dropped 7 per cent to PHP12.8 billion and corporate data improved 11 per cent to PHP9.1 billion.
Non-telecom units booked 47.4 per cent growth to PHP2.8 billion.
Capex dropped 25 per cent to PHP37.7 billion.
The operator said 5G outdoor coverage in greater Manila reached 97.4 per cent at end-June.