Globe Telecom Inc., the telecommunications arm of the Ayala Group, said Tuesday net profit in 2022 surged 46 percent year-on-year to P34.6 billion, with extraordinary gains from the partial sale of its data center and the sale and leaseback of its tower assets offsetting increased depreciation.
“Excluding the impact of the one-time gains, normalized net income would have been P20.0 billion, up by 13 percent from 2021,” Globe reported to the Philippine Stock Exchange.
The one-time net gain of P8.4 billion after-tax on the partial sale of Globe’s data center business in the first quarter of 2022 and the net gain after-tax of P6.2 billion from the sale and leaseback of its tower assets offset the 11 percent increase in depreciation charges to P45.7 billion.
Service revenue rose 4 percent to P148 billion, with the growth in earnings from corporate data, mobile and other products overcoming the decline in revenue of home broadband and fixed-line voice.
Capital expenditures for 2022 rose 9 percent on year to a record P101.4 billion, or $1.9 billion, as Globe expanded its mobile and fixed network to improve customers’ internet experience. It rolled out 1.4 million fiber-to-the-home lines last year. Globe raised P17 billion last year from a stock rights offer to help fund the record investment.
Globe said that with the postpaid fiber-to-the-home market nearing saturation level, the company will focus on the prepaid segment of the broadband market.
The company gave a lower capital expenditure guidance of $1.3 billion for 2023 and $1 billion for 2024 to bring back cash flow to a more sustainable level.
“As we strive to future proof our network performance, provide better customer experience, and continue with various digital innovations to address the everyday pain points of our fellow Filipinos, we are optimistic that our beyond-telco initiatives will help enable the Philippines to become a truly digital nation.”
Ernest L. Cu, Globe president and chief executive officer
