Globe saw its first quarter net income drop by 2% to P6.59 billion as sustained network upgrades resulted in higher depreciation and non-operating charges.
Consolidated service revenues rose 2% to P36.9 billion, 75% of which accounted for data revenues driven by strong demand for online video entertainment and internet connectivity.
Globe president Ernest Cu attributed the telco’s resilience to its digital transformation over the last five years.
Cu, however, expects capital spending to be lower by P2 billion in the second quarter in response to the COVID-19 crisis.
“Although plans to ramp up spending once operations normalize are in place, the full impact on the planned 2020 capex will be re-evaluated once ECQ is lifted on May 15,” Cu said.
“In light of this extraordinary environment, we expect revenues in the next quarter to decline by low double- digits from the first quarter levels, as the ECQ limits people’s movement and affects their disposable
However, as we prepare for the new reality, we do see an acceleration in home broadband services, and cloud-based and cybersecurity solutions given the move of most companies to work remotely,” Cu said.
“Furthermore, Globe is very well positioned to pull through this unprecedented time, with a strong balance sheet and an effective and efficient business continuity plan in place. Outlook for the balance of the year will be assessed further as the impact is highly dependent on the duration of the community quarantine,” he added.