Globe profit falls 7% as financing costs rise
Revenue increased 6% to ₱139.35 billion, but higher operating expenses, interest charges and foreign exchange losses weighed on earnings.
Globe Telecom Inc. reported net income of ₱16.48 billion for the nine-month period ending in September, down 7% from ₱17.69 billion a year earlier. Its financial report showed that rising costs, including interest charges and losses linked to a weaker peso, reduced earnings.
Revenue reached ₱139.35 billion, an increase of 6%, supported by its mobile and broadband businesses. Expenses also climbed 6% to ₱71.31 billion, with Globe reporting higher payments for utilities, supplies, services and leases.
Financing costs rose by half to ₱18.21 billion as interest rates increased and foreign exchange losses mounted. Interest expenses totalled ₱13.46 billion, while currency fluctuations generated losses of ₱4.2 billion.
Depreciation expenses increased 8% to ₱43.27 billion as Globe wrote off legacy assets while investing in new projects.
Globe also highlighted its investment in Mynt Inc., the parent of e-wallet GCash. Mynt raised ₱60.9 billion through its October listing, giving it a market capitalisation of ₱442 billion. It accounts for 28% of Globe’s pre-tax profit, and Globe Capital Venture Holdings Inc. holds the largest stake at 33.84%.
President and CEO Carl Raymond Cruz said Globe remained optimistic about longer-term expansion through its core offerings and digital services. He cautioned that continuing inflation and tighter household budgets could affect consumer spending and the company’s performance.
