Data revenues account 75% of service revenues of Globe in 1H

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Local telco Globe Telecom reported that total data revenues for the first six months of 2020 accounted for 75% of its total service revenues, up from 70% last year.

Globe said data revenues was again the top revenue contributor to its total service revenues as Filipinos stayed in their homes and shifted their activities online.

Mobile business revenues for the second quarter, on the other hand, declined by 7% from the P26.8 billion reported in the first quarter, bringing total revenues for the first half of the year at P51.8 billion, 5% lower than same period last year.

This was mainly driven by the decline in prepaid top-ups and postpaid acquisition particularly during the lockdown period, the Ayala-owned telco said.

Total mobile revenues comprised 72% of the total service revenues, with total mobile subscriber base of 80.2 million. From a product view, mobile data revenues generated P35.8 billion in the first six months of 2020 versus P34.0 billion of last year, as customers now spend more time online.

Mobile data currently accounts for 69% of mobile revenues from 63% a year ago. Mobile data traffic jumped from 764 petabytes in the first half of 2019 to 1,106 petabytes this period, or a 45% growth year-on-year.

Meanwhile, mobile voice and mobile SMS revenues for the period, ended at P10.2 billion and P5.8 billion, lower year-on-year by 16% and 30%, respectively, as more customers shift to data-based services versus the traditional voice calls and text.

Offsetting the decline in mobile business, home broadband sustained its growth momentum, generating a 19% revenue growth to reach P12.5 billion this period from P10.6 billion reported a year earlier.

Total home broadband subscriber base now stands at over 2.9 million, up 58% from the first half of 2019, driven mainly by the sustained increase of fixed wireless broadband users.

The growth was also achieved due to higher take up of Home Prepaid Wi-Fi as demand for wireless connectivity increased as Filipinos were forced to stay and work/learn from home due to restrictions brought about by the community quarantine.

As of the first semester of 2020, Home Prepaid Wi-Fi (HPW) data traffic soared to 182 petabytes from 45 petabytes in same period of 2019. Corporate data revenues, on the other hand, contracted by 3% year-on-year with total revenues of P6.2 billion as of end-June 2020, largely coming from lower domestic and international services.

Overall, Globe’s consolidated service revenues in the first half of the year was at P72.4 billion, a decline of 1% from P72.9 billion a year ago. On a quarterly basis, revenues dropped by 4% given the full impact of ECQ/MECQ to operations.

Globe said it invested a total of P20.9 billion in its network in the first half of the year, 10% higher than last year and representing 29% of gross service revenues.

Bulk of the capex spending went to data-related requirements, comprising 76% of the total capex spending for the period, it said.

Globe also said it is pushing for the expansion of its 5G coverage in key areas in the metro, specifically in the Makati and Bonifacio Global City Central Business Districts (CBDs), to make 5G available to its mobile customers by the 3rd quarter of this year.

To support the roll-out of high-speed mobile technology and further expand the LTE network coverage nationwide, the revised capex guidance for 2020 is estimated to be P50.3 billion, lower than the original guidance of P63 billion given the delays in the rollout during the ECQ/MECQ period.

“While we expect revenues for full year 2020 to decline by low single digit against last year, given the impact of community quarantine restrictions, we do see growth opportunities on the home broadband front and ICT space. Higher demand for Internet connectivity and cloud solutions are expected as companies have been forced to embrace remote working for employees and to fast-track their digitalization efforts. Mobile data and digital solutions will also increase traction with more customers adopting a digital lifestyle in the new normal,” said Ernest L. Cu, Globe president and CEO.

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