Globe Telecom income grows 3% in 6 months

Globe Telecom Inc. reported a three percent rise in net in the first half on the back of higher revenues.

The Ayala- led telco’s net earnings reached P9 billion from January to June, up from last year’s P8.7 billion a year ago.

Globe’s core net income which excludes the impact of non-recurring charges, foreign exchange gains and mark-to-market changes, also grew two percent to P8.8 billion in the first semester from P8.6 billion last year.

Consolidated revenues as of end-June amounted to P59.6 billion, 11 percent higher than the P53.8 billion in the same period in 2015, as notable gains were seen across all business segments.

Mobile revenues reached P45.7 billion for the first half, a three percent uptick from the P44.5 billion reported a year ago, driven by strong revenue performance of Globe’s prepaid brands.

The growth in mobile revenues was supported by the sustained rise in mobile data service revenues which amounted to P17.8 billion in the first half, a 46 percent growth from the P12.2 billion reported a year ago.

Globe’s mobile subscriber base is now at 61.3 million, a 20 percent increase from 51 million reported in the same period last year due to the strong prepaid gross acquisitions during the period.

Home broadband revenues likewise continued its growth trajectory both in revenues and subscriber base, expanding 49 percent and 38 percent yearon-year respectively, to reach P7 billion and 1.14 million as of end-June this year.

Revenues from the corporate data business jumped 55 percent to P4.9 billion in the first six months from P3.1 billion last year.

Traditional fixed line voice revenues likewise posted a 29 percent uptick year-on-year to P1.9 billion for the first semester from P1.5 billion a year ago following the growth of bundled home broadband plans.

Globe’s total cost and expenses for the first six months, including depreciation charges, reached P45.4 billion, rising 13 percent from the P40.2 billion reported a year ago.

“We are proud that Globe’s overall results in the first half remained robust amidst the heightened competitive intensity and the unique challenges and opportunities posed by increasing levels of smartphone penetration and mobile postpaid ownership in the market,” Globe president and CEO Ernest Cu said.