Globe bullish on prospects for nontelco segment–exec

Globe Telecom Inc. said on Sunday it expects a “significant rise” in its nontelco revenues in the “next two to three years,” as it beefs up its other digital initiatives in line with the shift in its business strategies.

According to Globe President Ernest L. Cu, the company anticipates its nontelco business to contribute in “various ways,” including a potential increase in market capitalization and market value.

“The nontelco earnings will grow. They could either be consolidated into our P&L [Profit and Loss Statement] or they could be in a sharing equity earnings of a subsidiary if we become a significant minority investor,” he 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.”

Globe operates various businesses not directly related to its core telco vertical. These include ventures in fintech, health tech, edutech, climate tech, adtech, shared services, investments and entertainment.

Cu said he is bullish about the growth in these sectors, as “Globe excels at identifying significant, longstanding challenges in the country which can be solved at scale.”

As of the first half, Globe’s nontelco revenues surged by 52 percent to P2.8 billion, up from P1.9 billion during the same period in 2022.

With this, nontelco revenues now represent 3.5 percent of the company’s total gross service revenues.

Cu added that Globe’s joint ventures and affiliates have also been instrumental in boosting the bottom line.

The company’s net share in equity gains grew by 13 percent year-on-year to P1.1 billion thanks to the growth of Globe Fintech Innovations Inc. (Mynt), the operator of GCash.

Cu said that with an “enviable ecosystem comprising a vast customer base, powerful brands, strategic affiliations, and partners, Globe envisions its nontelco revenues playing an even more significant role in its total earnings in the near future.”

He noted that Globe is “doubling down on its efforts to explore new opportunities and partnerships,” as it continues to expand its revenue streams.