Globe Telecom is looking to diversify revenue streams to offset continued declines in its fixed-line businesses, aiming to tap experience gained in launching mobile payment services to move into new sectors, Bloomberg reported. 

In an interview with the news outlet, CEO Ernest Cu (pictured) acknowledged the company is concerned its now-healthy mobile business could flatten out, as has been witnessed in other markets.

Cu stated it is considering moves into healthcare and other sectors where it can add value with its fintech offering. Its payment app GCash ended April with 81 million active users.

The operator’s fintech services includes loans, wealth management and insurance for consumers.

While mobile service revenue grew 8 per cent year-on-year in Q1 2024 to PHP41.1 billion ($706.9 million), home broadband and its fixed-line voice business continued to decline. Overall operating revenue was broadly flat at PHP45 billion, with non-telco revenue dropping 31 per cent PHP567 million.

Globe’s fintech arm Mynt accounted for 11 per cent of pretax net income in the quarter, up from 4 per cent in 2023.

In early February, the operator issued a conservative guidance for the year, forecasting low- to mid-single-digit revenue growth as the contribution from lower-margin data products increases.

Over the past year, Globe slashed capex which peaked at $1.9 billion in 2022, falling to $1.3  billion last year and forecast at $1 billion in 2024.  

The operator ended March with 58.8 million mobile subscribers, marginally behind rival Smart Communication with 59 million.

Singtel holds a near 47 per cent stake in Globe.