Globe earns ₱18 B in 9 months

Fueled by the strong growth across all its data-related products and services, Globe Telecom, Inc. reported ₱17.7billion net earnings, up 20 percent, in the first nine months of 2019 versus the preceding year, on revenues of ₱110.6 billion, up 13 percent. Core net income went up 20 percent to ₱17.9 billion.

Total data revenues accounted for 70 percent of total service revenues versus 59 percent from a year earlier, as the telco reaped the benefits of its expanding 4G/LTE network. Consolidated EBITDA stood at ₱57.9 billion with EBITDA margin remaining high at 52 percent.

“We are happy that our sustained topline and profit growths over the past three quarters have positioned us well as we head into the fourth quarter,” remarked Globe President and CEO Ernest L. Cu. “As we gear up for the roll out of our At Home Air Fiber 5G service, we are shaping the future of the nation and solidifying our leadership role in providing fast and reliable Internet in the markets we serve.”

From January to September this year, mobile revenues reached ₱83.0 billion, up 13 percent. Mobile revenues remained the top contributor, accounting for 75% of the total service revenues led by the telco’s Prepaid brands. Mobile subscriber totaled 97.4 million, up 5 percent from last quarter.

From a product perspective, mobile data revenues totaled ₱52.2 billion in the first nine months of 2019, boosted by Globe’s data bundles, better network coverage, improved smartphone affordability and more subscribers engaging on social networks, stream videos and music content as well as gaming.

Mobile data now accounts for 63 percent of mobile revenues from 49 percent a year ago. Mobile data traffic likewise improved from 641 petabytes in same period of 2018 to 1,200 petabytes this period supported by the continued growth in consumer’s appetite for data.

Meanwhile, mobile voice and mobile SMS revenues for the period ended at ₱18.5 billion and ₱12.3 billion, lower year-on-year by 15 percent and 22 percent, respectively, as usage continues to shift from traditional to data-based services.

Globe’s home broadband revenues grew 19 percent year-on-year to ₱16.1 billion, with 40 percent subscriber expansion in fixed wireless solutions. Total home broadband subscriber base stood at over 1.9 million, up 24 percent.

Corporate data revenues generated a total of ₱9.5 billion as of end-September of 2019, up 12 percent due to the higher circuit count that increased its capacity, coupled with the increase in usage for both Internet and domestic services.

Globe’s total operating expenses, including subsidy, amounted to ₱52.8 billion for the period, 8 percent more than last year’s, leading to consolidated EBITDA to end the first nine months of 2019 at ₱57.9 billion, up 17 percent.