Network giant Globe Telecom Inc. posted lower profit in the third quarter of the year, even though its revenue rose to a record high driven by growth in its mobile business.
But earnings growth for the January to September period was healthy at 7 percent as the rise in revenue compensated for the overall rise in operating and depreciation charges, as well as non-operating expenses.
“We are pleased to have sustained our momentum and extended our gains into this third quarter, despite a very challenging competitive environment,” Globe president and CEO Ernest Cu said. “Our mobile business has reversed the declines of last year, while our broadband business continues to deliver improved profitability with its growing scale.”
The company’s third-quarter total comprehensive income slipped slightly to P2.396 billion from P2.42 billion last year, although nine-month profits rose to P8 billion from P7.4 billion.
The company said its mobile business, which accounted for about 80 percent of consolidated revenue, delivered strong results, anchored on the continued growth of domestic core services such as voice and text messaging, coupled with the rapid rise in mobile browsing usage.
Globe said its user base grew 15 percent from last year’s 25.4 million and last quarter’s 29.1 million. Mobile revenue rose to P39.7 billion as of end-September, up 7 percent from last year’s P37 billion.
The firm added that subscription to its broadband Internet rose by more than a third from last year to 1.4 million in the same quarter.