Globe Group is optimistic about the business climate next year amid key developments in its two strategic areas: the expansion of its cutting-edge data center operations and the introduction of the Gogoro two-wheel electric vehicle (EV).
Globe is positive it can maintain its business trajectory in 2024 following an all-time high in consolidated service revenues for the first nine months at P121.1 billion despite the challenging macroeconomic conditions.
Globe’s resilience is bolstered by its strategic agility and robust performance in mobile and corporate data, leading to high Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of PHP60.7 billion from January to September this year. This aligns with the company’s annual projections and demonstrates its ability to thrive amid economic uncertainties.
“We remain optimistic for 2024. We are hopeful that inflation and interest rates have already reached peak levels. We are very confident that given the state of competition in the market, given our people’s continued efforts, and our market position, we’ll be able to sustain a lot of what has happened in our mobile and fixed line side of our telco business this year,” said Ernest Cu, Globe President and CEO.
Cu was particularly excited over Globe’s ambitious data center business led by ST Telemedia Global Data Centres (Philippines) (STT GDC Philippines), a joint venture between Globe, Ayala Corporation, and STT GDC of Singapore.
Responding to the growing demand for hyperscale quality locations in the Philippines, STT GDC Philippines recently held the groundbreaking of a 6MW data center in Cavite, echoing the high standards of its planned 124MW facility in Fairview.
These next generation data centers are designed to cater to the increasing needs of enterprise businesses and hyperscalers for reliable, high-quality data services, marking a significant step in Globe’s expansion strategy. These facilities are expected to generate revenues for Globe and its partners by 2025.
In addition to its data center initiatives, Globe is leading the charge in climate tech and sustainable transportation with the launch of Gogoro Smartscooters utilizing battery-swapping technology. This initiative positions Globe at the forefront of the transition to EVs in the country, starting with two-wheelers.
The Gogoro project is a joint venture between Globe’s 917Ventures, Ayala Corporation, and Gogoro of Taiwan. It aligns with Globe’s commitment to innovation and environmental stewardship, offering a cleaner, more efficient mode of transportation.
Despite the current high interest rate environment and elevated inflation, Globe’s strategic initiatives and strong market position ensure its continued success. The company’s latest ventures into data center infrastructure and sustainable transportation solutions reflect its dedication to technological advancement and environmental consciousness, setting a precedent not only for the telecom industry but Philippine business in general.
