Globe Telecom Inc. projects a significant rise in non-telco revenue over the next two or three years in keeping with its strategic shift from a traditional telco to a techco with a menu of digital solutions on offer.
Ernest Cu, Globe Group president and chief executive sees its non-telco business contributing to total revenue in various ways.
“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 sharing equity earnings of a subsidiary if we become a significant minority investor,” Cu said.
“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,” he added.
Cu is optimistic about growth, noting that Globe excels at identifying significant, longstanding challenges in the country which can be solved at scale.
Globe’s transformation from telco to techco has led the organization to diversify its portfolio, venturing into various sectors such as fintech, health tech, edutech, climate tech, adtech, shared services, investments and entertainment.
This diversification strategy has proven fruitful. As of the first half of the year, Globe’s non-telco revenue skyrocketed to P2.8 billion, up from P1.9 billion during the same period in 2022. The 52 percent growth means non-telco revenue now represents 3.5 percent of the company’s total gross service revenue.
The surge in non-telco revenue is attributed to growth across Globe subsidiaries led by ECPay and Asticom, and closely followed by AdSpark and Yondu.
Globe’s joint ventures and affiliates have also been instrumental in boosting its bottom line. The company’s net share in equity gains grew by 13 percent year on year to P1.1 billion.
A standout in this growth trajectory is Globe’s share in Mynt, which saw a 63 percent year-on-year increase, reaching close to P1 billion in the first half of the year. Mynt’s positive contribution now accounts for 5.1 percent of Globe Group’s income before tax.
