DESPITE faring better than its competitor, mobile services provider Globe Telecom Inc.’s bottom line grew at a relatively slower pace during the first three months of the year.
Globe closed the first three months of 2016 with a net income of P4.3 billion, up 3 percent against the P4.2 billion reported in the same period last year. This, according to President Ernest L. Cu, was despite the “increase in depreciation and nonoperating charges during the period.”
During the same comparative periods, consolidated-service revenues grew by 14 percent to P29.9 billion, thanks to the sustained robust revenue growth driven by gains across data-related product segments and the continued subscriber growth for both mobile and home broadband.
Globe ended the first quarter with an 18-percent increase in subscriber base, which now stands at 57.3 million.
Its top line’s growth was, likewise, aided by the revenue contribution from Bayan Telecommunications Inc., amounting to P1.5 billion as of end-March this year.
Excluding the aforesaid revenues, Globe’s consolidated service revenues grew to P28.5 billion, up by 9 percent from the same period last year.
Mobile revenues rose by 7 percent year-on-year, reaching P23.1 billion as of the first quarter of 2016 from the P21.6-billion reported a year ago. This was driven by its mobile-data service segment, which posted revenues of P9.1 billion in the first quarter of 2016, or 62-percent higher than the P5.6-billion reported a year ago. The increase was driven by the increasing smartphone penetration and the availability of low-priced data-capable devices.
Total home-broadband service revenues reached P3.5 billion, as of end-March 2016, up by 51 percent from a year-ago level.
Globe’s corporate data business also improved year-on-year by a solid 51 percent to reach P2.3 billion as of end-March 2016 from the P1.5 billion posted in the same period in 2015.
Operating expenses and subsidy grew by a slower 11-percent year-on-year to P16.8 billion, from P15.2 billion last year, to support the growing subscriber base and the continued expansion of its data network.
This led to a core net income of P4.2 billion, slightly higher by P3 million the year prior.
“Even as we face intense industry competition in the months ahead, we remain confident we can achieve sustainable financial growth moving forward, with our continuous effort to innovate and improve the customer experience backed by the growing investment in network development to strengthen our leadership in the digital space,” Cu said.
Globe spent around P7.1 billion in capital expenditures, as of end-March of 2016 to support the growing subscriber base and its increasing appetite for data. To date, Globe has a total of 29,008 base stations, with over 18,900 for 4G3, to support the service requirements of its customers.
PLDT Inc., the largest telco company in the Philippines, closed the first quarter with a 34-percent drop to P6.2 billion, from the P9.4 billion reported the year prior.
1 comment
Puro profit ang iniisip nitong mga taga globe kaya nuno ng kupad ang internet. Recruit ng recruit ng subscribers pero barya lang ang investment sa infra.