GLOBE GROUP SUSTAINED HEALTHY TOP LINE GROWTH: RECORD REVENUES AT ₱80.4 BILLION, UP 2% YoY;
EBITDA AT ₱40.5 BILLION, FLAT YoY;
MYNT NOW CONTRIBUTES 5% OF GLOBE GROUP’S BEFORE TAX NET INCOME
ON A SEQUENTIAL BASIS, NORMALIZED NIAT AT ₱10.0 BILLION, GREW 14% AGAINST A SIMILAR MACROECONOMIC ENVIRONMENT;
CORE NIAT AT ₱9.9 BILLION, UP 22% SEQUENTIALLY
NON-TELCO REVENUES GREW A ROBUST 52% YOY;
MOBILE BUSINESS REVENUES AT ₱54.8 BILLION, UP 1% YoY, DRIVEN BY MOBILE DATA REVENUES OF ₱44.0 BILLION, UP 5% YOY;
CORPORATE DATA REVENUES AT ₱9.1 BILLION, UP 11% YOY
GLOBE INVESTED ₱37.7 BILLION IN CAPEX FOR INFRASTRUCTURE DEVELOPMENT
OOKLA: GLOBE HAILED AS THE PHILIPPINES’ MOST RELIABLE MOBILE NETWORK FOR FIVE TIMES IN A ROW;
GLOBE WAS ALSO NAMED AS THE MOST CONSISTENT FIXED BROADBAND IN SEVERAL AREAS IN THE COUNTRY FOR Q2 2023
GLOBE HAS BEEN NAMED THE PHILIPPINES’ STRONGEST BRAND BY BRAND FINANCE
Key Financial Highlights: Topline Growth Sustained with The Rising Data Consumption
The Globe Group’s consolidated service revenues rose 2% to a record ₱80.4 billion for the first half of 2023 showing stable revenues year-on-year, backed by the data revenue growth across mobile and corporate data businesses. The sustained topline improvement was likewise supported by the robust contribution from its non-telco services, which now account for 3.5% of total gross service revenues. Total data revenues as of the first semester of the year amounted to ₱65.9 billion, increasing its contribution to the topline from 81% last year to 82% this period.
Mobile business revenues as of end-June 2023, stood at ₱54.8 billion or higher by 1% compared to ₱54.0 billion reported a year ago, mostly coming from the company’s prepaid brands. The wireless segment showed growth on the revenue line despite the inflationary pressures not present in the same period last year, as it continues to benefit from the return to pre-pandemic levels of public mobility. On a sequential basis, the growing data habituation of Filipinos resulted in a 2% quarter-on-quarter improvement in
revenues. Total mobile revenues comprised 68% of the total consolidated service revenues, with the total mobile customer base ending at 82.9 million for the first six months of the year.
From a product perspective, mobile data revenues posted a record ₱44.0 billion for the six-months period of 2023 or up 5% from the ₱41.8 billion a year ago. Mobile data traffic continues to grow steadily, reaching 2,814 petabytes as of end-June of 2023, higher than the 2,177 petabytes reported in the year earlier. This was mainly fueled by the growing popularity of streaming and user-generated content through social media. Mobile data now accounts for 80% of mobile revenues from 77% last year. On the other hand, traditional mobile voice and SMS revenues ended at ₱6.8 billion and ₱4.0 billion, lower year-on-year by 13% and 10%, respectively.
The Home Broadband business closed the first six months of the year with ₱12.8 billion revenues from
₱13.8 billion reported in the same period last year. The drop in the legacy and fixed wireless products was partly offset by the sustained expansion in postpaid fiber subscribers and revenues, growing 10% and 23%, respectively.
Additionally, total Home Broadband subscribers now stand at 2.2 million or down by 31% versus last year. This decline is in line with the normalization of the fixed wireless base as the market shifts to the more reliable wired connectivity and is expected to stabilize with the end of the sim registration. HPW data traffic likewise declined to only 166 petabytes as of end-June 2023 from 253 petabytes recorded in the similar period of 2022. The decline in FWA revenues and operating metrics have begun to slow down in the second quarter of 2023, suggesting the bottoming out of this trend. The company expects these FWA metrics to continue to decline organically over the next 4 quarters, with FWA revenues eventually dropping to ~₱600 million from the ₱986 million reported in the second quarter of 2023, or approximately 10% decline per quarter. FWA subscribers are likewise expected to normalize in the third quarter, post-expiry of the sim card registration period.
As part of the Company’s thrust to accelerate its fiber business and make fiber-speed internet affordable to all Filipinos, Globe launched the revolutionary offering GFiber Prepaid last June. GFiber Prepaid is designed to reach the mass market segment which remains to be under-served. It aims to democratize access to fiber connectivity, offering a No Lock-Up, Unli Pay-Per-Use promos, and Buy Now, PayLater options with GCash. With GCash’s Buy Now, Pay Later feature, customers can pay in installments up to a 24 months using the app or pay with a credit line of up to ₱50,000. Customers can acquire a GFiber Prepaid service with a special introductory offer of a one-time fee of ₱1,499, inclusive of installation and seven days of unlimited internet. They can also choose from a selection of unlimited data promos with GFiberSurf299 for seven days, GFiberSurf549 for 15 days, and GFiberSurf999 for 30 days.
Moreover, GFiber Prepaid provides customers with a fully digital experience from application to scheduling of installation and account management. Customers may easily sign up for the service via the GlobeOne app. Also, as part of Globe’s commitment to sustainability and circularity, GFiber Prepaid comes in recyclable and upcyclable packaging, which can be repurposed and used as a laptop stand.
Corporate Data business on the other hand, posted a record ₱9.1 billion revenues during the six-months period of 2023, surpassing last year’s performance by 11%. This was mainly spurred by the strong demand for information and communication technology (ICT) services which grew 36% year-on-year with Globe’s continued support to businesses on their digital transformation journey.
Furthermore, Globe’s shift from telco to techco prompted the organization to expand its vision and place greater emphasis on digital solutions. The company has ventured into digital marketing solutions, venture capital funding startups, virtual healthcare, e-commerce, business outsourcing, adtech, edutech, media, and entertainment, among others. As of the first half of the year, its non-telco revenues soared to ₱2.8 billion from ₱1.9 billion in the same period of 2022. This stellar performance was due to the substantial contributions from ECPay, Asticom, and Adspark.
Meanwhile, Globe’s total operating expenses including subsidy as of end-June of 2023 amounted to ₱39.9 billion, jumping from ₱38.3 billion reported as of end-June of 2022. This was largely attributed to the step up in costs for repairs & maintenance, administrative expenses, services and others as well as depreciation, partly cushioned by lower marketing & subsidy, staff cost, lease and provisions.
Globe Group’s consolidated EBITDA ended at ₱40.5 billion, relatively flat year-on-year, as the 2% topline expansion was offset by the 4% surge in operating expenses (including subsidy). EBITDA margin which dropped from 51% to 50% this period, remains within Globe’s guidance for the year.
Mynt, the Globe Group’s fintech arm, has continued to outperform expectations. Its continued strong performance and steady user base and usage growth has led to an increase in its profitability. The Globe Group’s share in Mynt’s equity earnings amounted to close to ₱1.0 billion already, which amounts to more than 5% of net income before tax.
Total normalized net income for the first half of 2023 came in at ₱10.0 billion, an impressive 14% growth against the normalized income reported in the second half of 2022, which operated in a similar macroeconomic backdrop. Against the same period last year, net income dropped by 27%, mainly due to the increased depreciation expense as well as the 78% decline in total non-operating income, which was due to the one-time net gain of ₱8.5 billion (post-tax) reported last year from the partial sale of Globe’s data center business. Excluding this one-time gain, normalized net income would have been ₱10.0 billion, or down by 11% compared to the previous year.
Accordingly, core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, closed at ₱9.9 billion for the period or up 22% on a sequential basis. Year-on-year, however, core net income similarly was down by 10%.
Globe’s balance sheet remained healthy and gearing comfortably within bank covenants despite the increase in debt from ₱233.2 billion as of end-June 2022 to ₱250.0 billion this period. Globe’s gross debt to equity is at 1.57x while gross debt to EBITDA is at 2.64x; Net debt to equity ratio is at 1.41x while net debt to EBITDA is 2.38x; and debt service coverage ratio is at 3.96x.
“The Globe Group continues to perform well during the first half of the year, despite facing macroeconomic challenges. We were consistent in delivering revenue growth on our mobile and corporate data businesses. More notable, we outperformed the industry with the upbeat growth trajectory of our digital solutions platforms,” Ernest L. Cu, President and CEO of Globe Telecom Inc., said.
“We are confident that Globe will maintain its leadership in mobile going forward. The company is also well-positioned to adapt to the industry’s changing landscape and take first mover advantage with its innovative digital solutions that deliver life-enabling services to Filipinos.” Mr. Cu, added.
Key Business Highlights: Capex stood at ₱37.7 Billion for 1H’23, 25% YoY decline
Consistent with the company’s efforts to bring free cash flow back to more sustainable levels, Globe invested ₱37.7 billion in capital expenditure (capex) as of the first six months of the year, or 25% lower than the similar period of 2022. Bulk of this capex amount or 90% was allotted for data requirements, as Filipinos spend the highest amount of time connected to the internet for telework, school, social media, entertainment, and online shopping among others.
Moreover, Globe built 542 new cell sites, and upgraded 5,087 mobile sites to LTE as of June 2023, in order to meet the rising data demands of its customers. The company also deployed around 148 thousand fiber-to-the-home (FTTH) lines, significantly lower than last year’s rollout to maximize the utilization of its existing fiber inventory.
As a 5G pioneer in the Philippines, Globe continues to deploy 5G wireless technology nationwide. As of the first half of 2023, Globe has fired up 356 new 5G sites across the Philippines, increasing its 5G outdoor coverage to 97.44% of the National Capital Region and 91% of key cities in Visayas and Mindanao. Also, Globe logged 5.2 million 5G devices, breaching the five million mark in its 5G network for the month of June 2023.
Furthermore, Globe continues to expand its 5G coverage around the world, with its 5G roaming service now available in a total of 67 countries and territories. Globe’s 5G footprint now includes Austria, (T-Mobile), Malaysia (Digi), Macau (CTM), US Virgin Islands and Puerto Rico (AT&T), Vatican City (Windtre), Northern Ireland, Scotland and Wales (EE), Russia (Megafon), and Northern Marianas (Docomo Pacific). Globe likewise partnered with more international telecom providers, including Hi3G in Denmark, SFR in France, Windtre in Italy, T-Mobile in the Netherlands, Slovak Telekom in Slovakia, Salt in Switzerland, and MEO in Portugal.
Staying true to its commitment to deliver the best and very reliable connectivity to all its customers across the Philippines, Globe once again has earned the most coveted recognition as the “Most Reliable Mobile Network in the Philippines” for the fifth time in a row, according to the global leader in fixed broadband and mobile network testing applications, Ookla®. Based on analysis by Ookla® of Speedtest Intelligence® 1Q2 2022, Q3 2022, Q4 2022, Q1 2023 and Q1-Q2 2023 data, Globe continued to dominate the industry, obtaining the highest consistency scores since the second quarter of last year. Globe achieved the highest Consistency ScoreTM of 83.64% in the first and second quarter of 2023, surpassing its record from Q1 2023 which recorded a Consistency ScoreTM of 83.39% and its competitors scores at 82.13% and 76.39% during Q1-Q2 2023. Likewise, Globe earned the “Most Available All Technology” mobile network at 92.63% in Q1-Q2 2023 beating the scores of its competitors which were at 91.56% and 91.13%.
Additionally, Globe was hailed as the “Most Consistent Fixed Broadband” in some areas in Metro Manila and several provinces in the country for the second quarter of 2023. It secured the highest consistency score2 of 89.04% in Las Pinas; 88.98% in Bustos, Bulacan; 88.63% in Mandaluyong, and 88.43% in Don Carlos, Bukidnon.
Globe’s network expansion is in line with its commitment to the United Nations Sustainable Development Goals, particularly SDG No. 9, which underscores innovation and infrastructure as key drivers of economic growth.
Lastly, leading digital solutions platform Globe has been named the Philippines’ strongest brand by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. In its 2023 annual report on the most valuable and strongest Filipino brands, Brand Finance highlighted Globe’s impressive AAA brand strength rating and brand value of US$2.028 billion. These achievements underscored Globe’s exceptional performance across its range of services.
1 Disclaimer: Reliability based on analysis by Ookla® of Speedtest Intelligence® data for all tech Consistency and Availability data in the Philippines based on Q2 – Q4 2022, Q1 2023 & Q1-Q2 2023. Most Consistent Fixed Broadband in select locations based on Fixed Consistency Score Q2 2023. Ookla trademarks used under license and reprinted with permission.
2 The consistency score is calculated based on the % age of a provider’s data samples that meet the minimum 5Mbps threshold for mobile download and 1 Mbps for upload, 25 Mbps download, and 3 Mbps upload for fixed networks.
Revised Consolidated Outlook:
- Due to the extended macroeconomic pressures this year, Globe’s service revenue guidance for 2023 has changed from “mid-single digit growth” to “mid-to-low single digit growth” from 2022 levels. This adjustment takes into account the extended inflationary environment that weakened the Filipino consumers’ purchasing power, coupled with the continued decline in our legacy broadband business.
- Full year 2023 guidance incorporates the impact of the SIM Card registration, which resulted in over 99% of revenue generating subscribers.
- EBITDA margin is expected to remain in the low 50s.
- 2023 capex budget will remain at approximately US$1.3 billion for the continued network expansion and enhancement. This is a reduction of over 30% from 2022 levels as the Company shifts its focus to optimizing capital deployment and bringing free cash flow to more sustainable levels. This will be enabled by the reduction in Purchase order or PO issuances for the year to only US$600 million, owing to the opportunistic front loading of investments during the last 4 years. During this period, Globe took advantage of the streamlined permitting regime and expanded its mobile and fiber footprint, in line with aspirations to become the country’s most reliable network. This steep reduction will directly impact capex spending over the next few years allowing capex to drop further to US$1.0 billion by 2024, without sacrificing network quality or customer experience.
Recent Development:
Update on Globe SIM Registration:
- Globe is the undisputed Mobile leader in the Philippines, edging out competitors in its user count as it logged nearly 54 million registered SIMs as of July 30, the end of the 5-day grace period following seven months of registration. Based on data released by the National Telecommunications Commission, Globe has logged 53,727,798 registered SIMs as of 11:59 p.m. on July 30, over 1.2 million higher than the nearest competition.
https://www.globe.com.ph/about-us/newsroom/corporate/sim-registration-august-2023.html
Network related Updates:
- ST Telemedia Global Data Centres (Philippines) (STT GDC Philippines), a joint venture between Globe, the Ayala Corporation, and Singapore-based ST Telemedia Global Data Centres (STT GDC), is set to expand its capacity by a total 5.2MW by Q3 of this year, in response to high market demand and the continuing digital transformation of the country.
This aggressive expansion across STT GDC Philippines’ three existing data centers in Makati, Cavite and Quezon City will exceed the capacity of most single data centers locally and is designed to serve near-term capacity needs.
In May this year, the company announced its newest data center campus, STT Fairview, the largest and most interconnected, sustainable, carrier-neutral data center campus with an IT capacity of 124MW and the initial phase of operations planned for early 2025.
https://www.globe.com.ph/about-us/newsroom/corporate/stt-gdc-ph-expands-capacity.html
- Globe supports calls for the establishment of a national Connectivity Index Rating, which sets a standard for internet quality, as it stands ready to collaborate with the government to make this proposal a reality. The proposed connectivity index aims to establish a standard for the quality of internet connectivity in public and private buildings, contributing to the wider national effort towards comprehensive digitization.
The Connectivity Index Rating was proposed by Globe together with various industry players to the sector leaders of the Private Sector Advisory Council (PSAC). The creation of a Connectivity Index Rating, supported by other industry stakeholders like consumer group CitizenWatch Philippines, is
envisioned to serve as a consumer-friendly, easy to understand rating system for the quality of internet experience in a particular indoor area. Further details can be found on the link below: https://www.globe.com.ph/about-us/newsroom/corporate/creation-connectivity-index-rating-ph.html
- Globe has become the Philippines’ first telco to successfully deploy Voice over New Radio (VoNR), marking a significant step forward in voice communication technologies. This landmark achievement was showcased at the recent INNOVANIA-themed Technology and Innovations Day held at The Globe Tower recently. The breakthrough VoNR call was a collaboration between Globe’s dedicated technical experts, solutions architect, and trusted technology partner HPE Singapore using their 5G in a Box solution. It was initiated using a VoNR capable mobile device also provided by HPE.
VoNR is a pioneering voice solution built over a 5G standalone network that promises enhanced voice quality, rapid call setup, and seamless handovers. It elevates the standard of voice communication, providing crystal-clear audio with minimal distortion, optimized bandwidth usage, and seamless simultaneous voice and data transmission.
https://www.globe.com.ph/about-us/newsroom/corporate/globe-takes-lead-first-vonr.html
Tower Sale and Leaseback Updates:
- Globe announced last July 17, 2023 the first closing of 115 towers sold to Unity Digital Infrastructure (Unity), for a cash consideration of ~₱1.4 billion. This transaction marks the first tranche of the 447 sale-and-leaseback deal with Unity. The tower assets are composed of 94% ground-based towers and 6% rooftop towers in Luzon.
Cumulatively, Globe already raised approximately ₱49.3 billion, reaching around 51% of the tower deal by officially turning over the ownership of 3,826 out of 7,506 towers sold.
Key Portfolio Company Highlights: Non-Telco revenues reached ₱2.8 Billion or 52% YoY
With the Company’s pivots from Telco to Techco, together with its commitment to uplift the lives of Filipinos through digital transformation, Globe is at the forefront of introducing digital innovations to the market. It is in a position to leverage its suite of digital solutions, through its various portfolio companies, to maximize its impact on the daily lives of its consumers. From its core telco business, Globe has grown its portfolio with ventures in financial technology, healthcare, edutech, climatech, entertainment, adtech, e-commerce, manpower, information technology services and investments.
GCash remains the dominant Finance Super App in the country, bannered by ubiquity across its active user base, which is 5x larger than the next e-wallet, based on statistics from reputable third-party provider data.ai, and the largest digital ecosystem with 6 million merchants and social sellers and over 900 merchant partners hosted in GLife. Built on trust and the security of its brand and platform, GCash was recognized in the PAHAYAG 2023 Second Quarter Survey, an independent and non-commissioned survey commissioned by PUBLiCUS Asia, as one of the most trusted and loved brands in the country, with an endearment rating of 80% and trust rating of 57%, significantly besting the next financial services provider at 22% and 26%, respectively. Moreover, GCash boasts of the most comprehensive suite of digital financial services, covering savings (via GSave), investments (via GFunds and the recently launched GStocks and GCrypto), and insurance products (via GInsure). On credit, backed by its proprietary trust platform and credit scoring via GScore, GCash has provided access to credit to over 3 million borrowers, of which more than 60% are from lower socio-economic classes and more than 60% are women. These milestones were achieved through game-changing lending products covering credit lines (GCredit), cash loans (GLoan) and buy-now-pay-later (BNPL, via GGives), providing loans to more Filipinos who need it the most, continuously paving the way to its vision of Finance for All. Pursuant to GCash’ mission to provide Finance for All Filipinos, it has gone beyond the nation’s borders and now offers payments in 13 countries through GCash Global Pay. GCash also empowers overseas Filipinos in 6
countries to manage their finances through GCash Overseas, providing access to services such as Buy Load, Pay Bills, and Send Money. Moving beyond transactions, GCash incorporates sustainability with innovation. The GForest movement empowers users to accumulate green energy and plant trees by simply using GCash. As of Q2, more than 2.5M trees have been planted, enabling our users to build a greener tomorrow.
Other portfolio companies under Globe’s corporate venture builder, 917Ventures, include telehealth service platforms KonsultaMD, HealthNow and AIDE. 917Ventures also has adtech company AdSpark; loyalty, and e-commerce solutions provider RUSH; a cloud based multi-channel communications platform M360; iNQUiRO which offers suite of data-driven products and solutions designed to create value for enterprises and their customers; DeepSeawhich is an adtech company focused on enabling programmatic advertising capabilities that power agencies, advertisers, and publishers; EdVenture which is an online tutorial platform that connects vetted tutors with K-10 students for private one-hour sessions for Math, English, Filipino, and more; and KodeGo which is a study now, pay later tech school offering bootcamps on different IT courses to equip beginners and career shifters with critical and highly sought-after skills.
- KonsultaMD, the largest healthtech play in the Philippines, provides accessible healthcare to Filipinos through a one-stop health superapp. With its consolidation with HealthNow and AIDE, the KonsultaMD SuperApp brings together KonsultaMD’s expertise in on-demand doctor consultations, HealthNow’s strength in medicine delivery, and AIDE’s mastery of providing health services at home. The new KonsultaMD SuperApp offers the full healthcare experience from 24/7 doctor consultations, pharmacy, to diagnostics at-home. With over 1,000 healthcare providers, 40+ specializations, and more than 1,000 pharmacy offers, KonsultaMD continues to serve Filipinos nationwide in 16+ dialects. KonsultaMD is the one-stop-shop for all your healthcare needs.
BraveConnectiveHoldings,Inc.(BCHI) AdSpark, the award-winning and largest locally ad-based data powered digital media and creative agency launched more than 3,100 digital campaigns. - M360, largest A2P multi-channel messaging platform, capable of sending messages to over 700 partner network operators in 190 countries via SMS or chat apps. Generates over 1.1 billion average monthly traffic with access to over 150 million mobile SMS users and over 45 million OTT users in the Philippines.
DeepSea, enables programmatic advertising by leveraging first party data, millions of audiences and wide variety & unique audience segments to advertisers.
2 demand-side clients as of Mar 2023
PDX launched on Lotame (Jan 2023)
Make It Safe campaign and SIM registration with Globe Group launched (Feb 2023)
Sim registration leg 2 with Globe Group launched (Apr 2023)
Rush, the loyalty and ecommerce arm of Globe’s 917Ventures made it to the Top 10 ecommerce solutions companies for 2022 of APAC CIO Outlook – the only Philippine firm on the index. Rush has over 5 million registered users and 1400 merchant partners for its e-commerce solutions.
Edventure, the online tutorial platform now has over 1 thousand active tutors onboarded, almost 10 thousand paid learning sessions and around 10 thousand registered parents.
KodeGo, tech bootcamp offering online IT programs and company matching support with over 1200 graduates with over 200 placements. Winner of Ayala Innovation Excellence Awards (AIXA) 2022.
Globe Group’s 917Ventures, Ayala Corporation, and Gogoro Inc. made history with the launch of Gogoro Smartscooters® and battery-swapping in the Philippines. The companies are introducing a new era in sustainable transportation that brings together smart, convenient and accessible electric two-wheelers to customers. Gogoro’s public availability in Metro Manila will be in Q4 2023.
In addition, multi-payment platform Electronic Commerce Payments (EC Pay) Inc., reported a significant growth in digital merchant partners as many Filipinos now shifted to digital channels. ECPay now has a general trade retail base of 462,947, exceeding their target of 456 thousand.
Globe’s corporate venture capital arm, Kickstart Ventures, is one of the most active venture capital firms in the Philippines. Kickstart manages two funds for Globe and advises the $180M Ayala Corporation Technology Innovation Venture (ACTIVE) Fund, the largest fund to come out of the Philippines. Out of these three funds, Kickstart now has 63 investments in 9 countries, backing 131 founders.
Finally, Asticom is a tech-enabled shared services and outsourcing company under the Globe Group. Launched in March 2015, Asticom has grown extensively over the years. It currently serves over 200 clients from various industries including telecom, fintech, IT, retail, health, logistics, automotive, banking, education, real estate, and energy. It employs over 5,000 headstrong workforce nationwide.
Key ESG Highlights:
Sustainability at Globe is anchored on its Globe Purpose, “In everything we do, we treat people right to do a Globe of Good,” and aims to contribute to 10 United Nations’ Sustainable Development Goals (UN SDGs) guided by the 10 UN Global Compact Principles.
In 2019, Globe became a signatory to the United Nations Global Compact, committing to implement universal sustainability principles.
Globe’s Sustainability practice is anchored on its Purpose that “in everything we do, we treat people right to create a Globe of Good.” With Globe’s nationwide footprint, it drives sustainability not just in its operations but also for society at large. The company is committed to contribute towards nation-building by providing inclusive digital products and services driven by its empowered workforce and stakeholders.
Net Zero Progress
As part of its commitment to set science-based targets through the Science Based Target Initiative (SBTi), Globe has identified an interim voluntary reduction target of 4.2% linear annual reduction rate (LARR) for its Scope 1 and 2 emissions, pending SBTi verification and approval. Globe has submitted in June 2023 its targets for SBTi validation, 24 months after its commitment to set science based targets as required by the SBTi.
In 2022, Globe achieved a 4.42% reduction of its combined Scope 1 and 2 greenhouse gas (GHG) emissions which is attributable to the company’s energy efficiency programs and continued shift to renewable energy sources. More details can be found on pages 213-221 of the 2022 Globe Integrated Report.
2022 Globe Integrated Report
https://www.globe.com.ph/about-us/sustainability/integrated-report.html#gref
Globe has published its 2022 Integrated Report guided by the principles of the following frameworks:
- International Integrated Reporting Council (IIRC) Framework
- Reference to the Global Reporting Initiative (GRI) standards
- Task Force on Climate-related Financial Disclosures (TCFD) recommendations
- Sustainability Accounting Standards Board (SASB)
- United Nations Sustainable Development Goals (UN SDGs)
- United Nations Global Compact (UNGC) Principles
- Securities and Exchange Commission (SEC) recommendations
- Integrated Annual Corporate Governance Report (i-ACGR)
- Sustainability Reporting Guidelines
- GSMA ESG Metrics for Mobile
The report is in compliance with the recommendations made in the Philippines SEC Memorandum Circular No. 4, series of 2019 on Sustainability Reporting for Publicly-Listed Companies (PLCs) and has undergone third-party external assurance conducted by DNV.
2Q 2023 Sustainability Updates
ENVIRONMENT
As of 2nd Quarter of 2023, Globe shifted 25 high-energy utilization sites to renewable energy and has adopted new energy efficiency measures to reduce energy consumption with the operations of the company. Moreover, it launched three (3) new circularity programs to reduce its electronic and paper consumption:
- Take back scheme for work tools
- E-business cards
- Recyclable and Upcyclable packaging
Energy
Part of Globe’s climate action strategy is the implementation of intelligent monitoring systems to support energy efficiency efforts. Aligned with its ISO 50001-certified Energy Management System and energy efficiency programs, the company has deployed a range of advanced technologies across its facilities, including a Remote Monitoring System (RMS) for its cell sites and a Computerized Maintenance Management System (CMMS) in its core facilities.
The company recently migrated its site backhaul from utilizing microwave antennas into a fully redundant fiber optic cable solution as it intensifies the shift to green technologies. Globe has already logged savings of 84,288 kilowatt-hours from 151 converted sites.
Globe continues to uphold its commitment to sustainability by shifting another facility in Visayas to Renewable Energy (RE) via the Green Energy Option Program (GEOP) of the Department of Energy (DOE). With the addition of the Iloilo facility, Globe now has a total of 25 high-energy utilization sites running on renewable energy as of end-March.
Climate Technology
Globe will deploy G-Climate, a digital service used to reduce the downtime of cell sites and ensure business continuity during times of disaster, especially typhoons. It has collaborated with Amazon Web Services (AWS) to develop G-Climate, a cloud native service, which uses predictive analytics on various data points such as weather information, weather patterns, and cell site outage data to identify potential outages specifically during the typhoon season.
https://www.globe.com.ph/about-us/newsroom/sustainability/g-climate-solution-improve-business-resilience.html#gref
Globe Group’s 917Ventures, Ayala Corporation, and Gogoro Inc. on Monday made history as they launched Gogoro Smartscooters® and battery-swapping in the Philippines. The companies are introducing a new era in sustainable transportation that brings together smart, convenient and accessible electric two-wheelers to customers.
https://www.globe.com.ph/about-us/newsroom/corporate/gogoro-smartscooters-battery-swapping.html#gref
Circularity
In promoting circularity, Globe partnered with CompAsia to initiate a “take-back” scheme for old units, which will allow for three-year old service units to be remarketed, rather than disposed of. In the same vein, Globe has also introduced the use of e-business cards to habituate the use of digital platforms and reduce carbon emissions associated with the production and delivery of traditional business cards. https://www.globe.com.ph/about-us/newsroom/sustainability/device-circularity-paperless-business-cards.html#gref
Beginning Q2 2023, Globe At Home will be introducing a recyclable and upcyclable packaging design for its Fiber product. The business aims to shift 100% of its modem packaging to recyclable materials by the end of the year.
SOCIAL
To ensure a safe and secure digital experience for its customers, the company has blocked 1.1 billion scam and spam messages, 554 Online Gambling, Smishing, Phishing Sites, 4M malicious bank-related SMS, and over 65K child porn sites. To complement this, Globe reintroduced #MakeITSafePH campaign to increase digital literacy among its customers. Over 50 regional language titles, Cebuano, Ilocano, Bikolano, Hiligaynon, and Maranao, including have also been added within the NABU app to advance literacy. Moreover, the Hapag Movement has taken further strides in establishing more partnerships to help alleviate involuntary hunger in the country.
Employee Engagement
Taking a new approach to leadership development, Globe has launched the Soul Leadership Program that aims to develop caring, authentic, courageous, and inspiring leaders, nurture employees’ well-being and drive the organization’s creative productivity.
SIM Registration
Globe has deployed the following strategies to increase the number of SIM registrants:
- Assistance through Globe Stores and Easy Hubs across the country
- Provision of incentives through Globe Rewards
- Deployment of 180 assistance desks in 72 provinces with the highest concentration of users of basic phones, or phones limited to call and text capability
- Use of the Emergency Cell Broadcast (ECB) system
- Enabled GCash app with SIM registration feature
- Partnership with LGUs in Visayas and Mindanao with Low SIM Registration Numbers
SIM Registration updates for April-June
https://www.globe.com.ph/about-us/newsroom/corporate/sim-registration-april-2023.html
https://www.globe.com.ph/about-us/newsroom/corporate/sim-registration-may-2023.html
https://www.globe.com.ph/about-us/newsroom/corporate/sim-registration-june-2023.html
Cybersecurity, Child’s Safety, and Anti-piracy
With the heightened campaign against scammers and the push for SIM registration, Globe blocked close to 1.1 billion scam and spam messages in the first quarter of 2023, complementing government efforts against online fraud bolstered by the SIM Registration Act.
In the first quarter of this year, the number of online gambling, smishing and phishing sites the company has blocked rose by 41.3 percent, showcasing its steadfast commitment to ensuring a safe and secure online experience for its users.
Globe has prevented more attempts to rob Filipino depositors of their hard-earned money in the first quarter of 2023 after partnering with banks and financial institutions to fight online fraud. The latest data showed the number of malicious bank-related messages blocked by Globe reached 4.07 million from January to March this year.
The company has blocked over 65,000 illegal sites carrying child pornography in the first quarter of the year in line with the government’s all-out war against Online Sexual Abuse and Exploitation of Children (OSAEC) in the Philippines.
https://www.globe.com.ph/about-us/newsroom/corporate/globe-blocks-over-65k-child-porn-sites.html#gref
The Globe Group’s Kroma Entertainment Inc. (KROMA) has taken a stand against piracy, pushing for passage of a bill that seeks to strengthen intellectual property protection in the country by boosting enforcement through more stringent measures such as site-blocking.
Globe reintroduced the #MakeITSafePH campaign to promote responsible and mindful online behavior and raise awareness about cyberbullying, placing focus on its impact on Filipino youth and the role of parents and guardians to mitigate it. The campaign kicked off in June 2022 to coincide with World Social Media Day, followed closely by the launch of the #MakeITSafePH microsite shortly after. https://www.globe.com.ph/about-us/newsroom/sustainability/protecting-childrens-mental-health-digital-age.html#gref
Traceable AI, the industry’s leading API security company, today announced that it has been selected from amongst multiple API Security vendors by Globe, to strengthen its API security capabilities. This partnership showcases the value of cybersecurity in an important but vulnerable field. https://www.globe.com.ph/about-us/newsroom/corporate/globe-telecom-taps-traceable-boost-api-security.html#gref
Education
To inspire more Filipinos to read and easily comprehend, the free-to-download tech-publishing app NABU: Multilingual Kids Books has released its first batch of regional language books for Filipino learners from diverse backgrounds. Globe has partnered with NABU, the New York-based nonprofit focused on eradicating poverty through increased literacy and free access to mother tongue books through their proprietary app.
Globe is supporting the Department of Education’s (DepEd) MATATAG Agenda, which aims to improve the delivery of basic education facilities and services in far-flung places in the country. The company recently donated 100 Home Prepaid WiFi units to DepEd, which have been distributed to various schools in the Cordillera Administrative Region (CAR) and Region 1.
https://www.globe.com.ph/about-us/newsroom/sustainability/100-home-prepaid-wifi-donated-deped-matatag-agenda.html#gref
Hunger alleviation
In support of The Hapag Movement, Chef Jessie is kicking off her project called Chefs Unite with a fundraising dinner, “Hapag ni LuzViMinda”, on Sunday, April 23 at the Events Hall of Chef Jessie’s Place in Makati. Half of the proceeds from the dinner and the sale of Chef Kay’s book, “Positives within The Possibilities,” will go to The Hapag Movement.
https://www.globe.com.ph/about-us/newsroom/corporate/chef-jessie-hosts-fundraiser-for-the-hapag-movement.html#gref
In collaboration with Filipino-Chinese restaurant community group Fil-Chi Ho Tsia Ho Dim, Globe Business was able to donate food that supplemented the evening feeding program of the Most Holy Trinity Parish for 100 beneficiaries within the community in Sampaloc, Manila. https://www.globe.com.ph/about-us/newsroom/sustainability/globe-business-donates-to-the-hapag-movement.html#gref
Standing firm against hunger, Globe launches the Longest Hapag—a five-month nationwide food festival series. The campaign kicks off in time for the commemoration of World Hunger Day this May 28, amplifying the global call to eradicate chronic hunger.
https://www.globe.com.ph/about-us/newsroom/corporate/longest-hapag-food-festival-series.html#gref
PaMEALYA was launched by the Diocesan Social Action Center (DSAC)-Ilagan Inc., in partnership with the Hapag Movement—a program led by Globe Telecom and implemented by partners such as the Catholic humanitarian, development and advocacy organization Caritas Phils. It aims to address the issue of food insecurity among 430 DSAC-Ilagan scholars from low-income families. https://businessmirror.com.ph/2023/07/01/caritas-phils-pamealya-program-brings-relief-to-struggling-scholars/
Executives of Globe and SM Group recently came together to synergize and sustain the momentum of The Hapag Movement, the Globe-led program that aims to address involuntary hunger among Filipinos. Through the program, proceeds from SMAC card purchases were donated to The Hapag Movement and SM Foundation programs.
SMAC (SM Advantage Card), the biggest loyalty program of retail giant SM, has donated P5.5 million to The Hapag Movement gathered over the holidays through vigorous support from its members. The donation to the Globe-led program aims to address involuntary hunger among Filipinos affected by the pandemic and economic challenges.
A first in Southeast Asia, ATIN Global Inc. and SEE Global Entertainment Inc. are bringing Michelangelo’s Sistine Chapel: The Exhibition to Filipinos from July 1 to September 20, 2023. A portion of the proceeds earned from every ticket sale will benefit The Hapag Movement. https://www.globe.com.ph/about-us/newsroom/consumer/michelangelos-sistine-chapel-the-exhibition.html#gref
Health
KonsultaMD, the Globe Group’s leading telehealth superapp, has joined hands with the Makati City government to provide 24/7 online doctor consultations for free starting May 2023. The partnership will pilot among City Hall employees, with the rollout for Makati residents with yellow cards scheduled later this year.
https://www.globe.com.ph/about-us/newsroom/corporate/konsultamd-makati-city-24-7-online-medical-consultations.html#gref
KonsultaMD has also partnered with the Cebu Technological University’s (CTU) Danao City, Cebu Campus to bolster digital healthcare support for the school’s staff and heighten their resilience amidst medical emergencies.
https://www.globe.com.ph/about-us/newsroom/corporate/konsultamd-ctu-danao-collaborate-digital-healthcare.html#gref
KonsultaMD, the Globe Group’s innovative healthcare SuperApp, in partnership with AC Health, has joined forces with its sister entities, AC Health’s Generika Drugstore and Healthway Medical Network, to expand healthcare services for Filipinos nationwide.
https://www.globe.com.ph/about-us/newsroom/consumer/konsultamd-unites-with-generika-healthway.html#gref
Community Engagement
In support of the Ayala Group’s #BrigadangAyala efforts, Globe has mobilized its resources to provide critical support to communities affected by the continuing unrest of Mount Mayon. https://www.globe.com.ph/about-us/newsroom/sustainability/resources-amid-mayon-volcano-unrest.html#gref
Globe has integrated the Pilipinas Special Olympics into the Globe Rewards Program as it reinforces its commitment to fostering diversity and social participation using the power of sports. https://www.globe.com.ph/about-us/newsroom/corporate/globe-joins-hands-pilipinas-special-olympics.html#gref
Digital Enablement
Reflecting its long-standing commitment to the United Nations Sustainable Development Goals (SDGs), the Globe Group is participating in the UN’s Vision 2045, a campaign that features documentary films about how businesses from around the world are taking collective action for a better global future. https://www.globe.com.ph/about-us/newsroom/corporate/purpose-led-transformation-un-vision-2045.html#gref
Globe Business is holding a two-day Retail Revolution on June 27 and 28 at the SM Megamall Atrium Activity Center to stimulate dialogue on the future of retail in a tech-enabled world. The event reinforces the brand’s commitment as a trusted partner of Micro, Small, and Medium Enterprises (MSMEs), in their digital transformation journey.
KonsultaMD is kicking off a new era in healthcare as it launches its SuperApp, which brings together the country’s top health brands to deliver a full suite of medical services to Filipinos in one easy-to-use platform. The KonsultaMD SuperApp is a milestone for healthcare in the Philippines, bringing together the country’s top health brands to offer a wide range of healthcare services, including doctor consultations, medicine delivery, and at-home labs and diagnostics.
https://www.globe.com.ph/about-us/newsroom/consumer/konsultamd-superapp-colorfest-run.html#gref https://www.globe.com.ph/about-us/newsroom/consumer/konsultamd-superapp-game-changer-ph-healthcare.html
AIDE has brought back one of its most popular services, Nursing Care, to address the growing need for professional help in caring for newborns, sick, or elderly family members. The option to book licensed professionals from the comfort of their homes makes the service the simplest way to ensure that family members are cared for by professionals they can trust.
https://www.globe.com.ph/about-us/newsroom/consumer/aide-brings-back-nursing-care-services.html
ESG RECOGNITIONS
Globe has received 17 accolades from six (6) award giving bodies, both local and international, for Q2 of 2023.
2023 Asia-Pacific Stevie® Awards
Leading digital solutions platform Globe and its portfolio companies won an impressive 11 awards across various categories at the prestigious 2023 Asia-Pacific Stevie® Awards. These accolades highlight the Globe Group’s remarkable achievements in delivering exceptional customer service, crafting innovative products, and producing high-quality content.
LinkedIn 2023 Top Companies List in the Philippines
The Globe Group has scored a milestone as it broke into the exclusive LinkedIn 2023 Top Companies List in the Philippines for the first time, placing 6th as it cemented its stature as one of the country’s top employers.
LinkedIn Talent Awards 2022
The Globe Group has solidified its position as a top employer in the Philippines as it secured significant victories in key categories at the LinkedIn Talent Awards 2022. This affirms the company’s commitment to excellence in employer branding and talent development.
Inter-Agency Council for Traffic (I-ACT) and SM Cares
Globe, the country’s leading digital service platform, was recognized by the Inter-Agency Council for Traffic (I-ACT) and SM Cares for its steadfast support during the height of the COVID-19 pandemic. https://www.globe.com.ph/about-us/newsroom/sustainability/i-act-at-your-service-awards-honors-globe.html#gref
Asia Pacific’s Climate Leaders
For two consecutive years, leading digital solutions platform Globe has been recognized as one of Asia Pacific’s Climate Leaders. The list developed by the Financial Times and Global Market Research Firm, Statista honors companies that are making significant strides in reducing their greenhouse gas (GHG) emissions.
Gold Stevie® Awards
Globe’s internal employee super app Quest won two Gold Stevie® Awards in the 19th Annual International Business Awards® Integrated Mobile Experience and HR & Employee Experience sub-categories. The recognition highlights Quest’s ability to simplify and centralize digital processes, enhance employee experience and improve organizational efficiency.
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Information about Globe’s Sustainability and Social Responsibility initiatives, may be found at The Globe Newsroom https://www.globe.com.ph/about-us/newsroom/sustainability.html and The Globe Sustainability Page https://www.globe.com.ph/about-us/sustainability.html
