Globe to defend mobile market lead

GLOBE TELECOM, Inc. aims to defend its mobile market leadership after the results of the subscriber identity module (SIM) registration showed that it still has the highest number of subscribers, its top official said.

“I think it has been some time since we have been leading. We captured leadership in 2016, it is now seven years, and we expect to defend that as well in the coming years,” said Globe President and Chief Executive Officer Ernest L. Cu in an online media briefing on Tuesday.

Data from the National Telecommunications Commission showed a total of 113.97 million SIM registrants or 67.83% of 168.02 million total subscribers.

Globe was able to register a total of 53.73 million subscribers or 61.9% of its 86.75 million total subscribers by the end of the grace period or by July 30.

Meanwhile, Smart Communications, Inc. closed the registration period with 52.5 million or 79.18% of its total users, while DITO Telecommunity Corp. registered a total of 7.74 million users representing 51.72% of its total users.

“We always stated that we want to register close to 100% of our active subscribers or loading subscribers, and we managed to do that because at the 54 million mark our revenues were not affected,” Mr. Cu said.

“Globe has said this many times that we have never really been focused on the number of subscribers we have, it is just a by-product of overall leadership in the industry,” he added.

Darius Delgado, head of Globe’s consumer mobile business, reiterated that the SIM card registration will have no material impact on the network operator’s top line.

“We have seen our top-ups, pickups and acquisitions in the last five weeks and they are still at least 50% higher than how it was pre-SIM registration deadline. And this is because we have already registered 99% of our revenue base,” he said.

Meanwhile, Martha M. Sazon, president and chief executive officer of GCash said that the platform expects a decline in user base after the registration period.

“We are not reporting the registered users now because we are waiting for the cleanup from the SIM registration. Just to let you know, we are expecting a significant decline similar to the telcos in terms of our user base as we are dependent on SIMs registered,” Ms. Sazon said.

However, she also said that the decline will not impact GCash’s revenues significantly as it will be shifting focus on the quality of its users.

OUTLOOKFor the second half of the year, Globe is expecting lower spending due to the slowdown of the economy which could affect the business, according to Mr. Cu.

“I have to say that in the coming quarter, there could be some headwinds primarily [due] to the slowdown of the economy,” he said.

In the second quarter, the country’s gross domestic product expanded by 4.3%, or slower than the 6.4% economic growth in the first quarter and the 7.5% last year.

“But there is also talk that inflation may be tapering off already. We are hoping that the (central bank) will hold on to the interest rates and not increase rates once again,” he said.

Nonetheless, Mr. Cu said that he was very pleased with Globe’s first-half results and that the team is “optimistic that it can continue for the balance of the year.”

Globe Chief Commercial Officer Maria Louisa Guevarra-Cabreira said that the optimism also comes from the improvement of average revenue per unit as mobility increases.

“This is despite the headwinds that we are actually anticipating in the second half, perhaps driven also by the back to school and the economic activity that has returned to the country,” she said.

Globe’s net income for the first semester declined 27.1% to P14.33 billion from P19.65 billion a year ago, despite a 2.5% increase in its top line to P89.52 billion from P87.32 billion last year.

At the stock exchange on Tuesday, shares in Globe closed higher by P65 or 3.51% to P1,915 each. — Justine Irish D. Tabile