Globe Announces 4th Quarter and Full Year 2022 Results

By Miong - Monday, February 13, 2023




NIAT AT ₱34.6 BILLION, UP 46% YoY; AND, 











Key Financial Highlights: Robust Topline Growth as Data Uphill Trend Continues 

The Globe Group closed the year with all-time high consolidated service revenues reaching ₱158.0 billion, up 4% year-on-year. Corporate data and mobile services, complemented by the continuous growth from non-telco services, mainly drove the topline expansion as more Filipinos adopt the digital lifestyle. Total data revenues as a percentage of total consolidated service revenues increased to 81% from 80% last year. 

The mobile business sustained its upward performance, ending the year with ₱107.5 billion compared to ₱104.4 billion reported the previous year and the second highest in company history. The revenue improvement came mostly from prepaid with greater public mobility and the resumption of face-to-face classes and work. Total mobile revenues comprised 68% of the total service revenues, with the total mobile customer base ending at 86.7 million in 2022. 

From a product perspective, mobile data revenues posted a record ₱83.8 billion for the full year of 2022 or 8% higher versus ₱77.8 billion in 2021. Mobile data traffic likewise soared to 4,658 petabytes as of end-December of 2022, surpassing the 3,733 petabytes reported in the preceding year. Mobile data now accounts for 78% of mobile revenues from 75% last year. On the other hand, mobile voice and mobile SMS revenues ended at ₱14.9 billion and ₱8.8 billion, lower year-on-year by 13% and 5%, respectively. 

With Globe’s expanded fiber footprint, postpaid fiber subscribers and revenues posted a year-on-year increase of 35% and 84%, respectively. The increasing fiber adoption among Globe customers drove the continued migration of home prepaid wifi (HPW) subscribers to fiber. However, this increase in fiber revenues was not enough to cover the decline in the legacy businesses, as the Home Broadband business further declined in the fourth quarter, ending the year at only ₱27.1 billion from ₱29.4 billion a year earlier. Similarly, total Home Broadband subscriber count now stands at 2.6 million or down by 30% year-on-year, with HPW data traffic declining to only 450 petabytes as of end-December 2022 from 808 petabytes a year ago. 

Despite the performance of the fiber business, the addressable postpaid fiber market has reached saturation levels with the wider market remaining underserved. Public clamor for reliable and more importantly, affordable internet connectivity continues. In response to this, Globe has shifted its focus to prepaid fiber, which it believes will open the industry to a new segment that could potentially drive the next phase of growth for the Home Broadband industry. One such prepaid offering is TMBayan Fiber WiFi, a public WiFi service where subscribers can connect their devices and have access to the internet. With this service, sari-sari stores, town plazas, community centers and other neighborhood convergence areas can become WiFi hotspots. As of end-January 31, 2023, Globe has fired up 652 TMBayan Fiber WiFi hubs in the National Capital Region (NCR); Luzon including Bulacan, Pampanga, Cavite, and Laguna; Visayas, specifically, Cebu and Tacloban; and Mindanao, including Davao del Norte, Davao del Sur, and Zamboanga. Globe expects to launch even more prepaid fiber products into the market by the 2nd quarter of 2023, to complement its current fiber offering. 

Corporate Data on the other hand, posted an all-time high revenue of ₱17.2 billion or 21% increase from a year ago due to the strong traction from information and communication technology (ICT) services which grew 89% year-on-year as more companies rely on business application, cloud, and data center services. 

As Globe continues to expand its beyond telco initiatives with a growing portfolio of digital companies in spaces such as fintech, healthtech, adtech, and entertainment, its non-telco revenues jumped to ₱4.2 billion in 2022 from ₱2.0 billion last year. The substantial revenue contributions from ECPay, Yondu, and Asticom led to its outstanding performance in 2022. 

Total operating expenses including subsidy stood at ₱78.9 billion for the full year of 2022, or 2% higher from a year ago. 2022 was a challenging year with several macroeconomic and external factors causing almost all expense line items to increase. These increases were partially offset by the declines from lease, services, marketing and subsidy, due to cost management initiatives employed by the company. 

Full year 2022 consolidated EBITDA stood at a record ₱79.1 billion or 6% higher from 2021 with the topline expansion of 4% offsetting the growth in operating expenses (including subsidy). This enabled overall EBITDA margin to increase to 50% from last year’s 49%, in line with full year guidance. With the EBITDA expansion and this year’s non-operating income, which fully covered for the 11% increase in depreciation charges, net income reached ₱34.6 billion or up by 46% than the ₱23.7 billion reported in 2021. 

Total non-operating income of ₱10.7 billion as of end-December of 2022 was attributed to the one-time net gain of ₱8.4 billion (post-tax) on the partial sale of Globe’s data center business reported in the first quarter of 2022 and the net gain of ₱6.2 billion (post-tax) from the sale and leaseback of its tower assets. Excluding these one-time gains, normalized net income would have been ₱20.0 billion, or up by 13% year-on-year. 

Accordingly, core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, ended at ₱19.2 billion for the period versus the ₱21.2 billion from the year earlier. Similarly, normalized core net income was 1% higher from last year. 

On the back of several initiatives executed by the company in 2022, the balance sheet has remained healthy and gearing comfortably within bank covenants despite all the headwinds that materialized in 2022 and debt increasing from ₱210.1 billion as of end-December 2021 to ₱233.2 billion this period. Globe’s gross debt to equity is at 1.53x while gross debt to EBITDA is at 2.35x; Net debt to equity ratio is at 1.43x while net debt to EBITDA is 2.20x; and debt service coverage ratio is at 3.82x. 

“Despite 2022 being a challenging year marked by inflationary pressures, high interest rates and weakened consumer confidence, Globe once again showed resilience. We are happy that the Globe Group closed the year with strong topline and EBITDA growth. We also achieved momentous milestones in 2022 where we closed the country’s largest-ever tower sale and leaseback agreement. In addition we successfully concluded our first stock rights of er in over two decades and raised ₱17 billion despite challenging market conditions. 

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, President and CEO of Globe Telecom Inc., stated. 

Key Business Highlights: Capex peaked in 2022 at ₱101.4 Billion (US$1.9 Billion) or 9% YoY to improve its data infrastructure 

Globe’s capital expenditure (capex) closed the year at ₱101.4 billion or 9% above than last year, which marked the highest investment ever in its mobile and fixed network to provide world-class internet experience for Globe customers nationwide. Majority or 86% of this period’s total cash capex was allocated for data requirements to ensure that customers will have access to more relevant digital solutions and best-in-class connectivity wherever they are. Globe spent record-high levels of capex in the past several years with its aggressive builds towards a #1stWorldNetwork and now have a significant backbone for its network. Through its strict and clear governance processes, Globe has ensured proper deployment of capital over the last few years, which allows it now to focus towards capital efficiency and optimization. This will bring capex in 2023 down to $1.3 billion, a reduction of over 30% from the 2022 peak level, with the target of eventually bringing this down to $1 billion by 2024. Through this, Globe aims to bring free cash flow back to more sustainable levels moving forward, as it reaps the benefit of the opportunistic investments it made in its infrastructure the past few years. 

Moreover, Globe deployed over 1.4 million fiber-to-the-home lines in 2022 versus 1.45 million lines from a year ago to address the growing need for connectivity nationwide as the economy opens up and mobility improves. For 2023, Globe will be shifting its focus to maximizing the utilization of its fiber inventory, and ensuring delivery of the right product to the underserved prepaid fiber market. 

Additionally, Globe built 1,702 new cell sites (vs. 1,407 in 2021), upgraded around 13.6 thousand mobile sites to LTE, and installed 2,267 new 5G sites nationwide to connect more consumers and businesses with the accelerated digitalization needs brought about by the pandemic. 

Globe, a 5G pioneer in the Philippines, is helping drive the adoption of 5G technology in the country and paves the way for the next generation of digital innovation. Globe’s 5G outdoor coverage has now reached 97.2% of the National Capital Region and 90.2% of key cities in Visayas and Mindanao. The company ended 2022 with 5G connectivity in 70 cities and towns across the Philippines versus 29 in 2021, more than doubling its coverage in a year. Globe also logged over 3.9 million devices in its 5G network in December of 2022. 

Moreover, with the Company’s ongoing network investments to provide our customers with superior experience, Globe has been named the Best Mobile Network Infrastructure Company at the annual Global Business Outlook Awards 20221. This recognition follows last year's award for Most Innovative Telecom. Globe’s continuous network buildup and improvement is part of Globe’s commitment to the United Nations Sustainable Development Goals, particularly UN SDG No. 9, highlighting the roles of infrastructure and innovation as crucial drivers of economic growth and development.

Key Portfolio Company Highlights: Striving to bring value to the overall digital ecosystem, Non-Telco revenues reached ₱4.2 Billion or 106% YoY 

Globe is at the forefront of introducing digital innovations and is in the position to leverage a suite of digital solutions through its portfolio companies. From its core telco business, Globe has grown its portfolio with ventures into financial technology, healthcare, edutech, entertainment, adtech, e-commerce, manpower, information technology services and investments.

GCash, the Philippines’ #1 Finance App and the only Philippine duacorn valued at over $2 billion, has sustained its market leadership, growing to 76 million registered users, 5.8 million merchants and social sellers, and 855 GLife merchant partners. Amidst its dominance as an e-wallet with over 5x more active users than the nearest e-wallet based on statistics from reputable third party provider, GCash has likewise pioneered and scaled digital financial services, across credit, savings, wealth and insurance products. GCash has disbursed over ₱57 billion of loans life-to-date across two million unique borrowers. These milestones were achieved with a suite of products spanning revolving credit lines, cash loans and buy-now-pay-later (BNPL), providing loans to more Filipinos who need it the most, backed by its proprietary credit score.

Other portfolio companies under Globe’s corporate venture builder, 917Ventures, include telehealth service platforms KonsultaMD and HealthNow. 917Ventures also has adtech company AdSpark; loyalty, and e-commerce solutions provider RUSH; online grocery shopping platform Rappit; a cloud based multi-channel communications platform M360; iNQUiRO which offers suite of data-driven products and solutions designed to create value for enterprises and their customers; DeepSea which is an adtech company focused on enabling programmatic advertising capabilities that power agencies, advertisers, and publishers; EdVenture which is an online tutorial platform that connects vetted tutors with K-10 students for private one-hour sessions for Math, English, Filipino, and more; and KodeGo which is a study now, pay later tech school offering bootcamps on different IT courses to equip beginners and career shifters with critical and highly sought-after skills.

  • KonsultaMD, HealthNow and AIDE, the three largest players in the digital healthcare industry, consolidated to uplift the healthcare journey, providing easy, reliable, and affordable end-to-end patient care. Now with more than 2 million users across over 50 thousand retail outlets nationwide. To further expand its reach, KonsultaMD is also partnering with over 95 brands and utilizing social media app Tik Tok with over 60 million views. HealthNow (including AIDE) has 1 million customers served by over one thousand healthcare providers across more than 45 specialties.
  • AdSpark, the award-winning and largest locally ad-based data powered digital media and creative agency launched more than 3,100 digital campaigns.
  • Rappit previously known as PureGo has been quickly expanding its reach and has over 10 thousand products available in 18 stores in NCR and GMM areas serving 38 cities.The Global Business Outlook Awards recognize and reward excellence in businesses around the world. It is designed to facilitate the outstanding work of businesses and business leaders across industries.
  • M360, largest A2P multi-channel messaging platform, capable of sending messages to over 700 partner network operators in 190 countries via SMS or chat apps. Generates over 1.1 billion average monthly traffic with access to over 150 million mobile SMS users and over 45 million OTT users in the Philippines.
  • Rush, the loyalty and ecommerce arm of Globe’s 917Ventures made it to the Top 10 ecommerce solutions companies for 2022 of APAC CIO Outlook – the only Philippine firm on the index. Rush has over 5 million registered users and over 1,200 merchant partners for its e-commerce solutions.
  • Edventure, the online tutorial platform now has over 1 thousand active tutors onboarded, around 5 thousand paid learning sessions and around 10 thousand registered parents.
  • KodeGo, tech bootcamp offering online IT programs and company matching support with almost 500 graduates with over 100 placements. Winner of Ayala Innovation Excellence Awards (AIXA) 2022. 
Furthermore, multi-payment platform Electronic Commerce Payments (EC Pay) Inc., reported a significant growth in digital merchant partners as many Filipinos now shifted to digital channels. ECPay now has a general trade retail base of 423,761, exceeding their target of 400 thousand. 

Globe's corporate venture capital arm, Kickstart Ventures, is one of the most active venture capital firms in the Philippines. Kickstart manages two funds for Globe and advises the $180M Ayala Corporation Technology Innovation Venture (ACTIVE) Fund, the largest fund to come out of the Philippines. Out of these three funds, Kickstart now has 61 investments in 8 countries, backing 130 founders. 
Meanwhile, Globe’s wholly owned subsidiary, Asticom Technology, Inc., a shared services and outsourcing company, now manages more than 5,200 employees from five employees in 2015, and serves more than 150 clients from all over the country. 

Finally, Globe, together with Ayala Corporation and Gogoro has announced their entry into the climatech space with the launch of a strategic partnership which will bring global two-wheel electric vehicle and battery-swapping technology leader Gogoro to the Philippines. 

Recent Development:

Update on Globe SIM Registration:

  • As of end-January 2023, Globe has logged over 11.3 million registrations of prepaid SIMs. All Globe Prepaid, TM, Globe At Home Prepaid WiFi, Globe Mobile WiFi and Globe Business prepaid customers have until April 26, 2023 to register. New Globe SIM users have up to 72 hours from December 27 to get their SIMs registered to activate call, text and data services. 
For existing Globe Postpaid, Globe Platinum, Globe LTE@Home, and Globe Business Postpaid customers, your data and information are deemed included in our platform and we shall get in touch with you to confirm and complete your registration details to align it with the requirements of the law. 
Registration via the GlobeOne app started last January 2023, while on-site assisted registration will start in February 2023 for Globe customers facing challenges using digital or online platforms, using feature or basic phones, or have no internet access. 

  • SIM Registration is expected to result in a lower subscriber base for the company, as non-active SIMs are churned out of the system. The company does not expect any impact to its topline due to this exercise and therefore, will result in a much better view of Globe’s ARPU and active subscriber base levels. 

Network related Updates:

  • Globe’s investment into the planned US$300-million Asia Link Cable system (ALC), an international subsea cable system, is expected to boost its connectivity capabilities as it shifts to a digital solutions platform. Globe, with five of the biggest telcos in the region, recently announced their partnership for the ALC, a submarine cable system in Southeast Asia touted to address growing connectivity needs and boost service resiliency. Once completed by the third quarter of 2025, ALC will add at least 18TBps of capacity to Globe’s existing network for its internal and customer requirements through Singapore and Hong Kong, the two main Asian hubs for internet traffic. Connecting to these nodes will boost Globe’s capacity to service the growing connectivity needs of its customers. 

  • The $150-million Philippine Domestic Submarine Cable Network (PDSCN), the longest of its kind in the country, is on track for completion in April 2023 to further boost digitalization in the countryside. Globe partnered with Eastern Communications and InfiniVAN Inc. for the project to provide equitable and reliable connectivity across the country, including previously unserved and underserved areas across the Philippines. The project kicked off in Subic Bay, Zambales in July 2022 and has already completed 15 segments across the country, including key cities and tourism destinations. 
Furthermore, Globe, together with Eastern Communications and Japan-affiliated telco InfiniVAN Inc, has commissioned NTT World Engineering Marine Corp. (NTT WE Marine) of Japan for the last leg of the $150-million Philippine Domestic Submarine Cable Network (PDSCN) project. NTT WE Marine will land and lay cables in the project’s nine remaining segments covering 13 sites until April this year through cable ship Subaru. In 2021, PDSCN tapped state-of-the-art ship Cable Infinity from Japanese vendor Kokusai Cable Ship Co. Ltd. to connect 15 segments across the country via fiber. 

  • Globe has successfully completed pilot deployments in Southeast Asia of the first multi-beam, multi-band lens antenna technology. The new solution provides improved 4G/LTE and 5G mobile capacity and reduces coverage holes, especially in large gatherings. Invented by MatSing Ltd. 

(MatSing) and implemented by IBMS Technology Phils. Corp. (IBMS), the lens antenna easily meets capacity demands of data-heavy smartphone apps, making it ideal for outdoor events, rural areas and densely populated areas in major cities, stadiums, coliseums, rally events and symposia. It also emits and maintains multiple beams cleanly with minimal Radio Frequency interference, deterring signal disruptions which delivers better quality of experience for customers. Initially, the team installed four antennas in two Globe cell sites in San Jose, Occidental Mindoro, and one Cellsite On Wheels (COW) at the Head in the Clouds Music & Arts Festival in Manila last December. The deployment gave impressive results. Globe plans to deploy the solution in areas hosting major events and in key pilot sites within Visayas and Mindanao region such as Guimaras, Negros Occidental, Negros Oriental, Cebu, Iloilo, Antique, Aklan, Bohol, Capiz, Bukidnon, Misamis Oriental, Zamboanga del Norte, North Cotabato, and Zamboanga del Sur.

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