Globe Telecom, Inc. remains optimistic about sustaining revenue growth despite the mandatory registration of subscriber identity module (SIM) cards, which resulted in the deactivation of around 30 million unregistered SIMs. The company reported that SIM registration has had no material impact on its revenues, as top-ups and acquisitions have remained unaffected.
According to Darius Delgado, head of Globe's consumer mobile business, the 53.73 million registered SIMs represent nearly 100% of the company's revenue-generating subscriber base. This indicates that Globe has already covered 99% of its revenue base.
The National Telecommunications Commission reported that out of an estimated 168.02 million SIM cards in circulation, 113.97 million have been registered, equivalent to 67.83% of the total. Globe has registered 53.73 million or 61.9% of its total subscriber base.
The SIM registration process, mandated by Republic Act No. 11934 or the SIM Registration Act, required all mobile phone and prepaid broadband users to register their SIMs by July 25. Failure to register resulted in SIM deactivation. Globe has deactivated approximately 30 million SIMs, primarily belonging to inactive users.
Globe is focused on the quality of its customers rather than the subscriber count. Maria Louisa Guevarra-Cabreira, the company's chief commercial officer, mentioned that average revenue per user (ARPU) has been improving quarter on quarter as mobility increases.
In the second quarter, Globe reported a 17.7% increase in attributable net income, reaching P7.07 billion compared to P6.01 billion in the same period last year. Gross revenues from April to June amounted to P44.49 billion, a 1.7% increase from P43.76 billion in the corresponding period in 2022.
Overall, Globe Telecom expects to maintain its revenue growth trajectory, despite the SIM card registration process and the deactivation of unregistered SIMs. The company's focus on quality customers and increasing ARPU contributes to its positive financial performance.
– Republic Act No. 11934 or the SIM Registration Act