Globe Telecom is shifting the focus of its business after a drop in revenue and usage due to the global pandemic.
Globe is a full-service telecommunications company located in the Philippines whose suite of products and services included mobile, fixed, broadband, data connectivity, internet, and managed services.
Earlier this month, the company predicted a single-digit drop in full year revenue due to the impact of the COVID-19 pandemic. Net profit in the first half of the year declined 5 percent year-on-year to PHP11.5 billion ($234.1 million), while operating revenue fell 3 percent to PHP78.8 billion. In addition, mobile service turnover fell 5 percent due to double-digit drops in voice and SMS business as customers started spending more time online during lockdowns.
As a result, Globe is looking to expand its offerings to boost business. Last month, the company announced it would pursue a content creation strategy as the current pandemic has shown the importance of online video, music, and games while people are forced to stay at home.
Globe Telecom is also positioning itself to become a “trusted advisor” within the enterprise market by acquiring a 67 percent stake in Third Pillar Business Applications, Inc. (TPBAI), a partner of Salesforce in the Philippines. The deal will give Globe a specific focus on cloud, software-as-a-service (SaaS), and digital transformation technologies.
“The importance of digital solutions today is more pronounced than ever and we continue to enable our clients, be it top companies or small and medium businesses, to achieve the most from their digital transformation journey,” said Ernest Cu, CEO and president of Globe.
The acquisition comes four months after Globe acquired Cascadeo Corporation to expand cloud capabilities in the U.S. and the Philippines. Cascadeo specializes in the deployment of automation, data analytics, and cloud-native platform-as-a-service offerings, in addition to serverless infrastructure and programmatic security. In addition to AWS, key vendor alliances also exist with Microsoft and Google Cloud, as well as NetApp and VMware.