Globe Q3 profit rises amid strong demand for data

By Arra B. Francia, Reporter

EARNINGS of Globe Telecom, Inc. attributable to the parent soared 76% in the third quarter of 2017, as the company continued to benefit from the expansion of its data segment in mobile and home broadband.

In a regulatory filing on Friday, the telecommunications giant said it delivered a net income attributable to the parent of P4.87 billion in the July to September period, higher than the P2.76 billion it realized in the same period in 2016. Revenues for the period grew 8.7% to P32.24 billion.

This pushed Globe’s nine-month attributable profit to P12.99 billion, 11% up year-on-year, following a 6% increase in revenues to an all-time high of P95.14 billion.

“We take pride in our accomplishments for the first nine months of the year with the sustained record-level revenues and EBITDA (earnings before interest, taxation, depreciation, and amortization). These achievement continue to inspire us to do the excellent work in all aspects of our business,” Globe President and Chief Executive Officer Ernest Cu said in a statement.

The company attributed the increase to its growing data segment, driven by its mobile and home broadband businesses, as well as its partnerships with global companies for innovative digital services.

Ayala Corp. and Ant Financial Services Group’s investment in Globe Fintech Innovations meanwhile helped offset the company’s share in equity losses and spectrum amortization connected to the acquisition of San Miguel Corp.’s telco assets.

Globe noted a 7% increase in mobile revenues in the nine months ending September to P73.1 billion, as the use of mobile data saw a strong uptake in the period. The company’s mobile subscribers reached 59.3 million during the period, which fell 9% year-on-year after it adopted a change in reporting strategy which excluded users who do not reload within 90 days from its count.

Mobile data service revenues stood at P31.3 billion, 20% higher year-on-year as the country saw higher smartphone penetration or 70% in the January to September period. Mobile data contributed 43% to the company’s mobile revenues.

Meanwhile, its home broadband business revenues grew 8% to P11.7 billion during the nine-month period. This was due to the robust demand for fast and reliable internet access, which drove the company’s customer base to 1.26 million subscribers by the end of September 30.

The company’s corporate data business delivered P7.6 billion in revenues, 4% up from the same period a year ago, as the segment saw increased usage during the period.

As of the end of September, Globe has spent P36.8 billion in capital expenditures to support its growing subscriber base and demand for data. Of this, around 84% has been exhausted for the data service needs of customers.

“As we focus more on the network improvement and differentiated customer experience, we expect to maintain our current momentum, and round out the year with a stable growth performance,” Mr. Cu said.

Globe currently has more than 24,000 base stations for the 4G network in order to support the service requirements of its subscribers.

Shares in Globe lost P12 or 0.59% to P2,030 each at the stock exchange on Friday.