Globe posts record earnings in 2016

Telco giant Globe Telecom saw record earnings last year on the back of “solid” growth from its internet-related offerings.

Globe said in a stock exchange filing Wednesday that core net income for 2016 hit P16 billion, up 6 percent, as total service revenues reached P120 billion, up 6 percent.

“The sustained revenue momentum, despite the competitive intensity in the market during the second half of 2016, was driven by the solid growth in data-related products across all segments, and robust subscriber growth for both mobile and broadband,” the company said in a statement.

Globe ended the year with 62.8 million mobile subscribers, lower than the 65 million it had in the third quarter that year, owing to a “clean up” of inactive accounts, Globe chief commercial officer Alberto de Larrazabal said on Wednesday.

Globe said mobile data, for the first time, overtook traditional voice calls as the largest contributor to mobile revenues. Mobile data accounted for 38 percent of the total, versus 37 percent for voice.

Mobile revenues ended 2016 at P91.9 billion, slightly above the P91.2 billion recorded in 2015. The home broadband business saw revenues at P14.5 billion last year, up 28 percent.

“As we move forward in 2017, we are optimistic that we will maintain our growth trajectory as we continue to strengthen our leadership in the digital space, through the use of innovation and partnerships with global content providers. We are confident that our aggressive investments in our network will meet the country’s future digital demands,” Globe CEO Ernest Cu.

For 2017, Globe is planning to spend about $750 million in capital expenditures, mainly to bolster its mobile data and fixed-line segments. JE