THE first-quarter net income of Globe Telecom, Inc. declined 2% to P6.6 billion from P6.73 billion in the same period last year due to sustained increase in depreciation charges and a bigger share in affiliates’ losses.

The Ayala-led telecommunications company said in a regulatory filing Tuesday its core net income for the first quarter, which excludes the impact of non-recurring charges, one-time gain, foreign exchange gains and mark-to-market charges, stood at P6.6 billion, a 3% decline from P6.73 billion in the same period a year ago.

Consolidated service revenues rose 2% to P36.9 billion from P36 billion. Globe said the increase was because of the “limited impact” of the coronavirus disease 2019 (COVID-19) on its operations.

Globe maintained its mobile data revenues at P26.8 billion while home broadband revenues grew 11% to P5.8 billion.

Corporate data added P3.3 billion or an increase of 4%. Globe said there were higher circuit count and revenues from information and communication technology during the covered period.

Fixed line voice revenues declined 2% to P697 million in the first quarter from the previous year’s P710 million.

Globe said its non-operating charges as of end-March, stood at P2.2 billion, or 3% higher than the P2.1 billion posted in the same period last year, “mainly on higher share in affiliate’s losses mainly from Mynt coupled with higher swap costs partly offset by net forex/MTM gains following forex appreciation and lower interest expense.”

The company said its capital expenditure guidance for the next quarter would likely be lower by at least P2 billion from the first quarter’s spending given the delays it is experiencing with its network rollout due to the enhanced community quarantine.

Globe said it was able to spend P10.7 billion in the first quarter, which was “22% higher than last year and representing 29% of gross service revenues.”

“Bulk of the capex spending went to data-related requirements, comprising 68%, as the company continued to invest in wonderful experiences for Filipino families and businesses,” Globe added.

Globe President and Chief Executive Officer Ernest I. Cu said: “Globe is very well positioned to pull through this unprecedented time, with a strong balance sheet and an effective and efficient Business Continuity Plan in place. Outlook for the balance of the year will be assessed further as the impact is highly dependent on the duration of the community quarantine.”

On Tuesday, shares in the company rose by 1.86% or P42 to close at P2,300 each. — Arjay L. Balinbin