Globe 2011 net profits flat at P9.8-B

MANILA, Philippines – Despite revenues reaching all-time high in 2011, Ayala-led Globe Telecom Inc. posted net profits of P9.8 billion, reflecting a flat annual growth.

Strong mobile and broadband sales pushed the revenues of the country’s second biggest telecommunications to P67.8 billion in 2011, a 9% increase against the previous year’s P62 billion.

Core net profits then surged 11% to P10 billion from P9.07 billion.

But as Globe had to continue making adjustments to prepaid load credits that have either expired or have been used up, non-recurring profits of up to P526 million had to slashed of from the bottom-line.

Below are the highlights of the company’s performance in 2011:

• 30 million mobile phone users in Globe’s network, of which 1.5 million are subscribed to a postpaid service.
• Mobile phone segment – Revenues reached P54 billion or 8% higher year-on-year, attributed to strong uptake of customizable postpaid plans
• Broadband segment – Revenues rose to P7.5 billion, up 30% from previous year driven by a growth in subscriber base, and the introduction of new and enhanced services enabled by the expansion of sales channels and the Company’s 4G HSPA+ network.

“We are pleased with the over-all gains we have achieved in 2011, and the momentum that it provides us going into 2012. The investments we have made in acquiring quality subscribers, revitalizing our brands, and enhancing customer service, put us in a good position to sustain the growth of our businesses in the coming year,” said Globe president Ernest L. Cu.

“The next 2 years will be a critical period for Globe as we execute on our network modernization programs, and as we improve our business support systems and processes, all towards our goal of making customer experience a key differentiator,” he added.– Rappler.com