GLOBE TELECOM, Inc. posted a 20% growth in its consolidated net earnings in 2019 to P22.3 billion, backed by higher revenues from customers’ data consumption, the Ayala-led company told the stock exchange on Tuesday.
Excluding foreign exchange and mark-to-market gains, as well as non-recurring items, the company’s core net income increased 20% year-on-year to P22.5 billion.
Ernest L. Cu, Globe president and chief executive officer, said in a statement that the past year had been a good one for the company “despite the changing industry environment.”
“We ended 2019 with a positive set of financial results and more importantly significant gains on the network front. These results serve as a springboard for the opportunities and challenges that lay ahead, and will help us better serve our expanded mobile and broadband customer base of over 96 million,” he said.
In the fourth quarter alone, Globe said its income fell 18% to P4.6 billion, while core income also dropped 21% to P4.6 billion.
The company’s total revenues increased 12% to P149 billion last year, driven by the 12% year-on-year growth in the mobile segment.
Data-related services, which include mobile data, home broadband and corporate data, accounted for 71% of Globe’s gross service revenues.
Home broadband generated P21.7 billion in revenues,up 17%, while corporate data added P12.8 billion, up 9%.
On the other hand, revenues from fixed line voice services dropped 10% to P2.7 billion.
Globe’s mobile subscribers rose 27% year-on-year to 94.2 million, 4% of which are postpaid subscribers while 28% are prepaid.
On the other hand, broadband subscribers increased 25% year-on-year to 2 million.
For 2020, Globe is keeping its capital spending target at P63 billion, which includes spillover of commitments from 2019. The amount is 23.5% higher than its spending last year, as it continues to expand and enhance its network.
Globe spent P51 billion, or $989 million, last year. The company said 79% of the amount, which was 18% higher than the previous year, went to its data-related requirements.
“We will continue this momentum through 2020 as we remain committed to our goal of delivering first-world internet connectivity to the Philippines,” Mr. Cu said. — Arjay L. Balinbin
