Globe Telecom seen maintaining revenue growth

Globe Telecom Inc., the country’s second-biggest telecommunications provider, said it expects to maintain revenue growth through the second half of the year, chief financial officer Alberto de Larrazabal said.

The company announced early this week that total revenues in the first half increased by 9 percent to P44.5 billion on the back of gains from its mobile, broadband and fixed-line data business.

“Everything we are seeing points to the ability to continue to grow,” Larrazabal told reporters in a recent interview. “I think the general momentum is still there.”

Mobile revenues hit P35.8 billion, up 8 percent, as subscribers increased. However, profits were weighed down by accelerated depreciation charges because of its massive modernization program.

Net income during the six-month period fell 72 percent to P1.4 billion.

Removing non-recurring items, including foreign exchange and mark-to-market gains and losses, core net income rose 13 percent to P6.4 billion, Globe said.

The company’s total subscriber base reached 36.1 million at the end of the first half of the year, 14-percent higher than the same period last year, the telecommunications firm added.

Larrazabal said that additional fundraising to support its 2013 spending requirements was no longer needed.

Globe initially planned to borrow $316 million this year, he said. However, the Bayan Telecommunications deal and additional refinancing and other operating requirements brought total 2013 fundraising to end closer to $400 million.

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