As Ernest Cu prepares to step down as Globe Telecom’s president and chief executive officer in April, he ends his tenure on a high note.
The Ayala-owned telco giant reported on Friday, February 7, that it ended 2024 booking a record P165 billion in revenues despite a 1% slip in its net income, thanks to strong contributions from e-wallet GCash, as well as its prepaid broadband and mobile businesses.
Cu even said in a briefing that this is the first time in three years that Globe’s broadband business overcame declines in its legacy segment.
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How is Globe preparing for the changing of the guard?
The transition period had already begun in January, when Carl Raymond Cruz began his stint as the telco giant’s deputy CEO on January 1.
Globe appointed Cruz as its deputy CEO in October last year. He will be reporting to Cu until Globe’s annual stockholders meeting in April.
Cu told reporters that the leadership transition has been going quite well so far. Apart from regular one-on-one sessions with his successor, Cruz has also been going through business onboarding processes that will immerse Cruz in the telco’s company culture and values.
“Recently we had a town hall introduction for him, wherein Carl was welcomed in the company-wide town hall by the Globe people,” Cu shared.
Globe’s outgoing chief executive also said Cruz met the Ayalas in his first board meeting on Thursday.
Cu had high praises for his successor, describing him as a “seasoned business executive.”
“He’s had over 30 years with Unilever in the past, and I’m sure he’s been exhibiting very good skills at taking over the business,” Cu said.
Given Globe’s strong financial results in 2024, Cu said that Cruz will be taking over a “very sound company” where business is still strong. He believes Cruz should be focusing on fine-tuning the business rather than introducing major changes.
“More important, I think, is the preservation of company culture, which in Globe has been a very big driver — a key driver of Globe’s success,” Cu said.
When he steps down as the service provider’s chief executive, Cu will still hold on to his chairmanships in various firms, such as Mynt, parent firm of GCash.
Globe’s outgoing chief executive began working for the Ayala-owned telco in 2008.
The year ahead for Globe
Investors are eagerly anticipating news on the public listing of Mynt, which could happen by the second half of 2025.
The initial public offering (IPO) is awaiting approval from the Securities and Exchange Commission (SEC).
Cu said Mynt is currently in the process of shedding any “private equity overhang” that could exist once the company goes public. He also hopes that the Philippine Stock Exchange (PSE) will consider easing the minimum public float requirement, or the required number of shares that can be publicly traded.
“We remain very optimistic the PSE, the SEC will see that this IPO is quite unique in terms of its size, in terms of the interest of the public and the international investors,” Cu said.
Public companies are currently required to have at least 20% of their shares available for public trading.
Apart from Mynt’s IPO, Globe is also expected to launch its STT data center in Fairview, Quezon City by the second quarter. It targets completion of its second data center in Cavite in late 2025.
Globe aims to keep its capital expenditures below $1 billion in 2025 to balance growth and profitability. – Rappler.com