Globe Q1 net income down 13%; service revenues up

Ayala-led Globe Telecom’s first-quarter net profit fell by 13 percent year-on-year to P3.76 billion on higher depreciation and interest expenses alongside one-time costs related to the purchase of San Miguel’s telecom assets.

Excluding the impact of non-recurring items, Globe’s core income stood at P3.7 billion in the first three months, lower by 12 percent year-on-year, as gains in cash flow were not able to offset the spike in depreciation expense.

The telecom firm nonetheless ended the quarter with record-level consolidated service revenues of P31.1 billion, 4-percent higher than the level in the same period last year.

“We are seeing encouraging improvements this quarter, despite the temporary setback on profits, as we continue to lay down the foundation to secure sustainable growth in the future,” Globe president Ernest Cu said. “Our continued aggressive network modernization and upgrades using the latest technologies are all geared toward enhancing our internet services so that our customers can have a wonderful and seamless connectivity.”

Solid revenue growth across all data-related segments as well as the continued subscriber expansion for both mobile and broadband led to record-high service revenues. “Game-changing” initiatives, including a digital lifestyle play, innovative offers and content partnerships with iconic global brands, backed by robust 3G and 4G networks nationwide also supported the growth, the company said.

Mobile revenues rose by 3 percent year-on-year to P23.8 billion on strong data consumption. TM, the company’s mass-market brand, registered 7-percent revenue growth from last year, while Globe Prepaid revenues improved by 3 percent. Globe Postpaid revenues, on the other hand, were flat year-on-year.

The company’s mobile subscriber base reached 58.6 million for the first three months, up by 2 percent year-on-year.

Mobile data remained the biggest contributor to total mobile revenues, now reaching 42 percent of total revenues during the quarter. —DORIS DUMLAO-ABADILLA