Connect with us

Hi, what are you looking for?


Globe’s 2020 income down 13% due to pandemic

GLOBE TELECOM, Inc. said the aggressive investments made in its network should allow revenues to increase by low to mid single digit from 2020 level. — BW FILE PHOTO

By Arjay L. Balinbin, Senior Reporter

GLOBE TELECOM, Inc. posted a 13.04% decline in its core net income for 2020 mainly due to the impact of the coronavirus pandemic on its businesses except for the home broadband.

The listed Ayala-led telco’s core net income for 2020, which excludes the impact of non-recurring charges, foreign exchange and mark-to-market charges, went down to P19.52 billion from P22.45 billion in 2019.

Full-year service revenues from mobile, home broadband, corporate data, and fixed line voice decreased 1.76% to P146.39 billion from P149.01 billion in the previous year.

Broken down, mobile revenue declined 7.08% to P103.11 billion from P110.97 billion, while broadband revenue jumped 23.23% to P26.80 billion from P21.75 billion.

Globe President and Chief Executive Officer Ernest L. Cu said at a virtual media briefing that the main driver of Globe’s performance in 2020 was the home broadband segment, as most subscribers stayed home.

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) for 2020 totaled P73.51 billion, down 3.31% from P76.03 in the previous year.

Core net income for the fourth quarter decreased 14.75% to P3.91 billion, as service revenues went down 2.90% to P37.28 billion from P38.40 billion posted in the same period in 2019.

Broken down, Globe saw its fourth-quarter mobile revenue decrease 10.31% to P25.80 billion from P28.77 billion reported in the same period in 2019, while home broadband revenue grew 27.75% to P7.25 billion from P5.68 billion in the previous year.

The listed telco saw its fourth-quarter EBITDA decrease 5.05% to P17.26 billion from P18.18 billion posted in the same period in 2019.

Mr. Cu said the company is optimistic about regaining momentum this year as the Philippine economy continues to recover.

At the same briefing, Globe Chief Finance Officer Rizza Maniego-Eala said the company expects its revenues to increase by “low to mid single digit” from 2020 level.

For 2021, Globe has set a capital expenditure (capex) budget of about P70 billion, higher than last year’s revised capex guidance of P50 billion.

“This year will likewise be impacted by the upswing in depreciation charges given the elevated capex programs,” the company said in an e-mailed news release on Wednesday.

As for the competition this year with the expected commercial rollout of telco startup DITO Telecommunity Corp., Mr. Cu said: “I think, on the mobile side, the competition will remain pretty much the way it is…”

“Where the competition will come, I think, will be in the fixed lines base,” he noted. “With Converge (Converge ICT Solutions, Inc.) having very significant builds alongside with PLDT, Inc. and Globe, what was once a free area for Converge to play has now become a crowded area.”

Meanwhile, e-wallet GCash, operated by Globe’s fintech arm Mynt (Globe Fintech Innovations, Inc.), announced separately that the tax payments processed on its platform last year had surged by 286%, “leading to close to P1.5 billion in tax collections.”

Globe noted its “lower share in equity losses of Mynt is seen to continue” this year.

“No additional asset impairment is expected for 2021,” Globe added.

Mynt recently raised more than $175 million in fresh capital from investment firm Bow Wave Capital Management and its existing shareholders in multiple tranches, with post-money valuation of the final tranches at close to $1 billion.

Globe Telecom shares closed 1.90% higher at P2,038 apiece on Wednesday. — Arjay L. Balinbin

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...


By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...


THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...


THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...


THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...


With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.