Globe’s net income surges 198% in Jan-Sept

MANILA, Philippines – Ayala-led Globe Telecom Inc has reported a 198% surge in its net income of P10.53 billion ($234.27 million*) in the first 3 quarters of this year, driven by growth across its key services.

The company reported a net income of P3.529 billion ($78.55 million) for the same period in 2013.

Globe also reported a 22%-increase in its core net income from January to September this year over the previous year, or P11.578 billion from P9.53 billion ($211.97 million), according to the telecommunication company’s disclosure to the Philippine Stock Exchange on Tuesday, November 11.

Globe president and CEO Ernest Cu explained this was due to the firm’s “robust expansion of mobile and broadband customer bases, strong demand for data connectivity, and the successful execution of various innovative and relevant promotions during the period.”

Increased subscriber base

Combined subscribers of Globe and Touch Mobile hit 42.9 million in the 3rd quarter of 2014 from 42.7 million in the previous quarter. Its subscriber base is now 17% higher compared to its past 36.5 million subscriber base in the same period in 2013.

In contrast, the PLDT group previously reported a loss of 3.4 million subscribers at the end of September this year, although it still holds the largest subscriber base at 72.4 million.

Meanwhile, the increase in its cellular subscriber base translated to mobile revenues worth P57.57 billion ($1.28 billion) in the first 9 months this year, 6% higher than last year’s P54.07 billion ($1.20 billion) combined mobile revenues.

In the same period, mobile data revenues also saw 30% growth at P4.02 billion ($89.46 million) from P3.08 billion ($68.54 million) in 2013.

“The surge in mobile data revenues resulted from the company’s initiative to move away from unlimited to volume-based or consumable data plans with the launch of GoSurf with Spotify offers,” Cu explained.

In 2013, Globe spent $700 million to upgrade its information technology infrastructure as they predicted an increase in data usage among its subscribers, especially during holidays.

Currently, Globe subscribers have an option to register to consumable data plans from as low as P15 ($0.33) for 20 MB apart from its standard unlimited mobile data packages.

Meanwhile, legacy mobile voice revenues dropped in the third quarter to P8.47 billion ($188.50 million) from P8.86 billion ($197.24 million) in the second quarter.

Earnings from text messages, despite a trend among subscribers across networks to shift from legacy services to data-driven communication services, managed to post only 1% increase from P7.29 billion ($162.19 million) in January to September this year from P7.23 billion ($160.95 million).

Fixed line and broadband service revenues also saw a 2% increase in the third quarter at P5.23 billion ($116.40 million) from P5.12 billion ($114 million), in the previous quarter. Broadband subscribers of Globe increased by 36% at 2.5 million.

“We remain steadfast and confident that with the stronger and more reliable network and our continued service innovations, we are ready to deliver the best digital services and the most seamless experience to our valued customers,” said Cu.

Globe is partly-owned by the Ayala Corporation, SingTel, with the rest of its shares owned by public shareholders.

This year, it spent P16 billion ($356.03 million) out of its P29 billion ($645.31 million) allotment for capital expenditures. – Rappler.com

*$1=P44.94