GLOBE Telecom, Inc. expects better business in 2024 amid the continued expansion of its data center operations and as the company ventures into climate technologies, the company said on Thursday.
“We remain optimistic for 2024. We are hopeful that inflation and interest rates have already reached peak levels,” Ernest L. Cu, president and chief executive officer of Globe, said in a media release.
“We are very confident that given the state of competition in the market, given our people’s continued efforts, and our market position, we’ll be able to sustain a lot of what has happened in our mobile and fixed line side of our telco business this year,” he added.
The listed telecommunications company said it is “positive” of maintaining its business trajectory after recording an all-time high consolidated revenues from January to September this year.
In the third quarter, Globe posted an attributable net income of P4.97 billion, lower by 27% from P6.81 billion a year ago, amid higher non-operating charges.
Globe reported consolidated revenues of P44.27 billion in the quarter, a 3.2% increase from P42.88 billion a year ago, amid strong service revenues.
Service revenues, totaling P40.66 billion, accounted for the majority of the company’s third-quarter top line, rising by 4% year on year from P39.1 billion.
Globe’s nine-month attributable comprehensive net profit fell by 27.1% to P19.29 billion from P26.46 billion in the same period last year. Its consolidated revenues stood at P133.79 billion for the period, 2.8% higher than the previous year’s P130.2 billion.
For next year, Globe’s optimism for its business operations is hinged on an expectation of rate cuts and the continued expansion of its data centers.
Globe through ST Telemedia Global Data Centres (Philippines) is building data centers, which the one in Fairview, Quezon City anticipated to come online by the first quarter of 2025 at a potential capacity of 124 megawatts (MW).
ST Telemedia Global Data Centres (Philippines) is Globe’s joint venture with Ayala Corp. and ST Telemedia Global Data Centres (STT GDC).
The company’s expansion plan is likely to reach a capacity of 5.2 MW for its existing data centers in Makati, Cavite, and Quezon City.
“These next generation data centers are designed to cater to the increasing needs of enterprise businesses and hyperscalers for reliable, high-quality data services, marking a significant step in Globe’s expansion strategy. These facilities are expected to generate revenues for Globe and its partners by 2025,” Globe said.
The Monetary Board on Dec. 15 kept its benchmark rate at a 16-year high of 6.5% for a second straight meeting.
From May 2022 to October this year, the Bangko Sentral ng Pilipinas (BSP) raised borrowing costs by a cumulative 450 bps to tame inflation.
BSP Governor Eli M. Remolona, Jr. said that the central bank is unlikely to cut rates in the next few months, adding that rates may have to stay “higher for longer” as inflation remains elevated.
Meanwhile, Globe has explored new ventures as the company expands its non-telco business to foray into transportation by partnering with Taiwanese vehicle company Gogoro.
Gogoro has partnered with Ayala Corp. and the Globe group’s 917Ventures to introduce its battery-swapping station in the country.
“This initiative positions Globe at the forefront of the transition to EVs in the country, starting with two-wheelers,” Globe said.
At the local bourse on Thursday, shares in the company closed P6 or 0.35% higher to end at P1,708 each. — Ashley Erika O. Jose