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The President of Globe Telecom Inc., Ernest L Cu, issued a statement. He said it is ensuing mobile stock trading and providing to unattended consumers after diminishes in its traditional business growth. Globe’s largest shareholders include Singapore Telecommunications Limited and merging Ayala Corporation. The company is establishing its lending business via its G-Cash platform.

However, Globe’s G-Cash platform already has a loan portfolio of $680 million (P40 billion). Cu said the company seeks to broaden access to loans. Globe is also lending to a normally moving to the informal sector because of higher interest rates. Cu also considers its take-up remarkably tremendous as G-Cash has added various other essential financial services.

Cu said hundreds of thousands come in when banks asked the company to obtain bank deposit accounts as a channel. He said these numbers could reach the millions and had never seen before like that. However, he is hopeful that it will double or triple at today’s exchange with a smaller amount of money. Glob’s growth is considered a major challenge like its peers around the world.

Globe will Reduce its Expenses in 2023

This significant challenge is tapering off as typical mobile service has now developed. Globe will also decrease its capital spending expenses in 2023, with constant benefits. Cu added that it is very frequent to discover businesses with a 50% margin around the world. He affirmed that the company will significantly maintain the level. It will offer Globe the base and capital to establish the G-Cash of the world.

Meanwhile, Globe Telecom is maintaining record revenues and continuously sustaining profitability. It has powerfully brought the company into the telecommunication industry in the Philippines with PLDT as its only competitor. The company is extending its growth opportunities via non-telecom services. This is significantly sustainable for the future with increasing numbers of subscribers, better marketing efforts, and excellent profitability.

Quarterly Performance and Record Earnings

Globe closed its first half of 2022 with record service earnings of P78.9 billion. This is an increase of 4% from P75.9 billion in 2021. The powerful earning performance was higher than the growth rates prior to the pandemic. It significantly contributed data-related items and services throughout mobile and corporate data. However, it recorded 81% growth of the total service earnings than 79% in 2021.

Moreover, Mobile Business earnings showed a considerable increase of 3%. It efficiently reached P54 billion from P52.6 billion in 2021. The easing of pandemic-related restrictions in the country offered significant growth from prepaid brands. Experts believe that online classes also contributed to increasing mobile revenues. The mobile customer base increased by 7% and 87.4 million compared to 2021.

Home Broadband Business Dropped Significantly

Meanwhile, the Home Broadband Business experienced a 5% consecutive drop from P14.5 billion to just P13.8 billion. The migration of HPW (Home Prepaid Wi-fi) subscribers to Fiber was the major reason. The Corporate Data service earnings continuously increased by 21% from the P6.7 billion reported in the first half of 2021. Most of the revenue came from ICT (information and communication technology) and ILL (international leased line) services.

However, Corporate Data earnings boosted by 8% in 2022, on a quarterly basis compared to 2021. The fixed line voice earnings reported a Year-over-year 14% and quarterly 8% drop. Globe currently offers various non-telecom items and services in the Philippines. The company reported diverse growth-increase enterprises in fintech, tech, health, and ecommerce.