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GLOBE
Telecom Inc.’s net profit declined 25 percent to P2.6
billion in the first quarter of the year, owing to the
prepayment of a $300-million bond it made last month.
The
country’s second largest phone firm reported over the
weekend that it absorbed P1.2-billion non-recurring,
after-tax impact of the early redemption of its bonds
originally due in 2012. The cellular firm’s core profit,
which strips out currency and derivative gains, reached
P3.7 billion.
Globe,
which is jointly owned by Ayala Corp. and Singapore
Telecommunications (SingTel), closed the first quarter
with a cellular subscriber base of 17 million. It added
1.3 million new subscribers during the first three
months of the year from 15.7 million at end-2006. All
the numbers have been rounded out.
The
company’s postpaid and prepaid subscriptions grew 49
percent year-on-year, with Touch Mobile continuing to
top its income base.
Revenues
rose 10 percent to P15.6 billion as it recorded 11
percent and three percent growth from the wireless and
wireline segments, respectively. Earnings before
interest, taxes, depreciation, and amortization jumped
to a record P10.4 billion.
“We will
work hard to sustain this strong start into the rest of
the year, by continuing to focus on improving
operational efficiencies and on enhancing our customers’
experience,” said Gerardo C. Ablaza Jr., president and
chief executive officer.
The
company spent P3.1 billion in capital expenditures
January to March as part of its programmed spending of
P17 billion this year. Globe spent P14.8 billion in
2006.
The
company is also investing in back-end facilities to
support its broadband thrusts and meet the growing
demand for international bandwidth. Globe will be
participating in a new cable project spearheaded by VSNL
International, a member of the Tata Group of
India,
which will set up a trans-Asian submarine cable system
that will link the Philippines to Hong Kong and
Singapore, with connectivity via the TGN Pacific network
to Japan, Guam and the United States.
Globe
will be the exclusive landing party in the Philippines
to this cable system, which is expected to be completed
by the second half of 2008. Total estimated cost to
Globe is about $90 million, including the costs of
capacity within Asia and the US, a new landing station
and domestic backhaul.
“We
remain excited about broadband and all the possibilities
that it brings to our nation,” Ablaza said. “We intend
to be at the forefront of this opportunity and look
forward to delivering on our mission to bring the
Internet to every Filipino home, classroom and
business.” |
