Globe Telecom Q3 core net income up 11% to P3.23B

MANILA, Philippines—Ayala-led Globe Telecom Incorporated (Globe) saw its core net income rise by 11% in the third quarter (Q3) of this year, driven by the continued demand for data products.

In a disclosure to the stock exchange on Friday, November 3, Globe reported a Q3 core net income, which excludes non-recurring charges, one-time gains, and forex and mark-to-market charges of P3.23 billion.

While the figure is up 11% from the  P2.91 billion recorded in the same quarter last year, it is down 25%  from last quarter’s core net income of P4.23 billion.

With non-recurring gains and charges included, Globe’s net income hit P4.89 billion for the third quarter also up 3% from the same period in 2016, and up 13% from the 4.32 billion seen in the second quarter of this year.

On a year-to-date basis, Globe’s core net income hit P11,207 billion down by 5% from the P11.7 billion a  recorded a year ago.

Including one-time gains and charges however, the telco’s net income for the first 9 months of 2017 hit P12.98 billion, 11% higher than in September of last year.

This, Globe said, was driven by “the sustained growth in Earning Before Interest Taxes Depreciation and Amortization (EBITDA) and lower non-operating charges recognized during the first 9 months of the year."

Mobile revenues stood at P73.1 billion as of end-September 2017, up 7% year-on-year, driven by the strong uptake in mobile data.

Mobile data contributed about 43% of total mobile revenues for the first 9 months of 2017, versus 38% a year ago. Mobile data service revenues reached P31.3 billion as of end-September 2017, or 20% above the P26.1 billion reported in the same period last year.

Revenue from Globe’s home broadband business hit P11.7 billion as of end-September, an 8% year-on-year growth.

Total operating expenses and subsidy grew by 5% year-on-year to reach P54.5 billion from P52.0 billion last year, which the firm said came mainly  from higher network-related leases, maintenance, and services. 

The firm also noted that the “decline in non-operating charges was mainly due to the recognition of a one-time gain related to the fair value of retained equity interest of Globe in Globe Fintech Innovations, Incorporated (GFI/Mynt), arising from the investment of Ant Financial Services Group and Ayala Corporation.” (READ: Jack Ma's Ant Financial invests in Globe's Mynt)

“This one-time gain offset Globe’s share in equity losses and spectrum amortization related to the San Miguel Corporation (SMC) telco asset acquisition, higher interest expenses, and depreciation charges booked during the period,” it added.

Globe’s consolidated EBITDA hit P40.6 billion, up 8% from same period of 2016, while EBITDA margin held steady at 43%, higher than the 42% reported last year. –