GLOBE Telecom, Inc. anticipates its non-telecommunications revenues to grow in the next three years mainly driven by its diversification strategies, its top official said.
“The non-telco earnings will grow. They could either be consolidated into our P and L (profit and loss statement) or they could be in a sharing equity earnings of a subsidiary if we become a significant minority investor,” Ernest L. Cu, president and chief executive officer of Globe, said in a media release on Sunday.
The listed telecommunications company said its non-telco revenues will fuel its overall revenues.
“The other way that it brings value to Globe is it adds to our overall market cap and market value as we create companies that may not be as profitable yet but do create significant value in terms of market valuation that will also show in the stock price of Globe,” Mr. Cu said.
The company said its shift from telco to techno — its strategy of venturing into fintech, health tech, edutech, climate tech, adtech, shared services, investments and entertainment — has allowed the company to boost its revenues.
For the first half, Globe said its non-telco revenues reached P2.8 billion, up by 47.4% from P1.9 billion in the same period last year, and accounted for about 3.5% of the company’s total gross service revenues.
The company reported a 17.7% increase in its attributable net income to P7.07 billion for the second quarter from P6.01 billion in the same period last year.
From April to June, the company’s gross revenues reached P44.49 billion, an increase of 1.7% from P43.76 billion in the corresponding period of 2022. — Ashley Erika O. Jose