Globe Telecom targets cost cuts - Mobile World Live

Globe Telecom targets cost cuts

07 FEB 2023

Globe Telecom highlighted moves to lower operating expenses to maintain profitability and offset anticipated margin pressure, after booking profit and revenue gains in 2022.

In a statement, president and CEO Ernest Cu noted 2022 was a challenging year marked by inflationary pressures, high interest rates and weakened consumer confidence, but argued the company showed resilience.

The operator forecast mid-single-digit revenue growth in 2023 and profit to be hit by the increasing contribution of lower-margin data-related products, offset by cost reductions.

Capex rose 9 per cent year-on-year to PHP101.4 billion ($1.8 billion) in 2022, with the operator stating it aims to bring free cash flow back to a more sustainable level by cutting the outlay this year.

Mobile service revenue increased 3 per cent to PHP107.5 billion, with 8 per cent growth in data services offsetting 13 per cent and 5 per cent declines in voice and SMS revenue, respectively.

Prepaid ARPU declined 1 per cent to PHP98 and post-paid rose 2 per cent to PHP839.

Its prepaid subscriber base remained at 84.2 million and post-paid was up 1 per cent to 2.5 million.

Net profit increased 46 per cent to PHP34.6 billion, with total service revenue rising 4 per cent to PHP158 billion.

Corporate data revenue grew 21 per cent to PHP17.2 million and home broadband fell 8 per cent to PHP27.1 million.

The operator upgraded around 13,600 mobile sites to LTE and installed 2,267 5G sites nationwide.

A government SIM registration drive is expected to reduce its subscriber base as non-active modules are “churned out of the system”, but the company expects no impact on 2023 revenue.



Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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