Globe Telecom earnings rise in 1st half

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GLOBE TELECOM, Inc. said its net income grew by 21% to P9.8 billion in the first half, on the back of higher revenues as a result of growing data consumption.

In a regulatory filing, Globe said its core net income, which excludes the impact of non-recurring charges, one-time gain, foreign exchange gains and mark-to-market charges, increased 25% to P10 billion.

“Sustained topline performance was due to the continued expansion of the 4G and LTE network, and the growing preference of customers towards content-rich offerings and multimedia applications that enrich the Filipino digital lifestyle,” Globe said in a statement.

For the first half, consolidated service revenues went up 9% to P68.3 billion, “mainly on the back of the robust growth of data across all segments, given the burgeoning data consumption among customers.”

Globe said mobile revenues rose 9% to hit P52.6 billion, mainly from Globe Prepaid and its mass market brand TM. Revenues of its home broadband and corporate data business also improved by 12% to P8.6 billion and 9% to P5.4 billion, respectively.

“This was boosted by the expansion of subscribers and continued high demand for various business solutions catering to the needs of corporate and enterprise clients. Including the impact of PFRS (Philippine Financial Reporting Standards) 15, total consolidated service revenues for the period stood at P67.3 billion,” the telco said.

For the period ending June 30, Globe’s mobile subscribers stood at 65.1 million, up 9% from 59.7 million subscribers last year as a result of efforts in attracting high-value subscribers for its prepaid brands.

Globe’s total home broadband subscriber base stood at 1.5 million as of end-June, 22% higher from a year ago.

However, fixed-line voice revenues dropped 17% to P1.51 billion during the first half. — DAV