Globe’s income jumps 43% in Q1 2015

MANILA, Philippines – Ayala-led Globe Telecom, Incorporated saw its net income surge by 43% during the first quarter of 2015, riding on strong revenue growth in mobile and broadband.

In a disclosure to the Philippine Stock Exchange (PSE), Globe said its net income rose to a record P4.2 billion ($93.73 million) in the first quarter from P2.95 billion ($65.84 million) in the same period in 2014.

Globe President and Chief Executive Officer Ernest Cu said the company was able to sustain its robust earnings last year despite the intense competition in the capital-intensive telecommunications industry.

“We’re happy that we maintained our growth momentum for the first quarter of the year, despite the heightened level of competition,” Cu said.

Sustains revenue growth

Cu added that the solid revenue growth, the all-time high EBITDA (earnings before income tax, depreciation, and amortization) level and the pure telco-recurring core net income improvement for the first 3 months of 2015 proves that Globe is the preferred brand of choice among Filipino consumers. (READ: Telco wars: Who’s really number 1?)

The Ayala-led telco’s service revenues grew by 13% to P26.22 billion ($585.17 million) from P23.23 billion ($518.44 million), with its broadband business growing by 31%, followed by fixed line data with 17%; fixed line voice with 12%; and mobile business by 10%.

Globe said that the sustained revenue growth was mainly driven by rapid customer base expansion of both mobile and broadband; the continued strong mobile data adoption and increasing smartphone penetration among its customers; and the introduction of innovative products and services.

The company’s operating expenses inched up by 5% to P15.22 billion ($339.65 million) from P14.43 billion ($322.02 million); while EBITDA jumped 25% to P11.01 billion ($245.76 million) from P8.79 billion ($196.19 million).

Globe booked a 25%-rise in core net income to P4.18 billion ($93.30 million) in the first 3 months of the year from P3.36 billion ($74.99 million) in the same period last year. Core earnings exclude non-recurring expenses, foreign exchange, and mark-to-market gains.

Hikes capex for mobile data

Globe said it is spending P29.12 billion ($650 million) this year. It is also set to spend another P8.6 billion ($200 million) from its capital expenditures (capex) allocation last year.

“We believe that with our modernized data-ready network and our strong commitment to innovation, powered by our collaborative partnerships with global content providers, we can achieve sustainable financial growth moving forward,” Cu said.

Globe’s subscriber base increased 13% to 46.1 million in the first quarter of the year from 40.75 million recorded in the same period last year. Its prepaid subscriber base jumped 13% to 43.83 million while postpaid subscribers rose 9% to 2.26 million from 2.09 million. – Rappler.com

$1=P44.83