Globe’s tech firm Yondu bullish on maintaining growth this year

GLOBE TELECOM, Inc.’s technology company Yondu, Inc. is optimistic that its revenue growth will continue this year, after seeing “significant market success” last year.

“We see the need for business continuity as a critical driver for growth. People are now more oriented to the crucial role of technology in making enterprises more resilient and future-ready, expediting businesses’ digital transformation,” Yondu President and Chief Executive Officer Joan D. Peñaflorida said in an e-mailed statement on Wednesday.

According to Globe, its non-telco products generated a total of P1.3-billion revenues last year, up 99% from the previous year. Main contributors were Electronic Commerce Payments, Inc. or ECPay and Yondu, it noted.

Yondu delivers solutions such as information technology services, service management, software development, and turnkey solutions, among others, to various businesses.

Health Management for Enterprise (HealthMe), a mobile application that allows companies to keep track of employees’ health, and Vessell, an e-commerce platform builder that gives business owners the ability to create personalized online stores, are among Yondu’s products that saw “significant market success” last year.

Ms. Peñaflorida said, “People have placed the utmost importance on their health and safety, which makes contactless solutions viable innovations.”

“We believe that there is a plethora of opportunities in this innovation, especially when we integrate the Internet of Things,” she added.

Globe recently reported a 13.04% decrease in its core net income for 2020. The company attributed the decline to the impact of the coronavirus pandemic on its operations.

But Globe’s home broadband business performed well last year, as the revenue increased 23.23% to P26.80 billion from P21.75 billion.

Mobile revenue declined 7.08% to P103.11 billion from P110.97 billion.

The company’s EBITDA (earnings before interest, taxes, depreciation and amortization) for 2020 totaled P73.51 billion, down 3.31% from P76.03 in the previous year.

The company said it is optimistic about regaining momentum this year as the Philippine economy continues to recover.

For 2021, Globe has set a capital expenditure (capex) budget of about P70 billion, higher than last year’s revised capex guidance of P50 billion. — Arjay L. Balinbin