Mobile browsing boosts Globe’s 1st-half service revenues

MANILA, Philippines—The popularity of unlimited text messaging and voice calls as well as mobile Internet browsing has given a significant boost to Globe Telecom’s mobile revenues.

For the first half of 2012, Globe mobile revenues reached P33.3 billion, P1.9 billion higher than the figure for the same period last year.  Mobile revenues account for 82 percent of Globe’s consolidated revenue, and include broadband, fixed line data and fixed line voice.

“Despite intensifying competition, our subscribers continued preference for our value offerings such as unlimited SMS and voice subscriptions as well as highly affordable mobile browsing allowed us to sustain the growth momentum of our mobile business,” said Globe president and CEO Ernest Cu.

Globe mobile data and mobile voice revenues were both up by 6 percent year on year, the company said.

Mobile data revenues grew from P15.3 billion for the first six months of 2011 to P16.2 billion as of June 30 this year, driven by increasing smartphone penetration and the launch of value-based data browsing plans as well as growth in unlimited short-messaging service (SMS) or text message subscriptions.

This more than offset the decline in regular pay-per-use SMS and inbound SMS revenues, which were driven by the NTC-mandated reduction in access charges from P0.35 to P0.15 per SMS.

Mobile voice revenues went from P16.1 billion for the first six months of 2011 to P17 billion for the same period of 2012 due to increase in bulk and unlimited voice subscriptions, Internet voice applications and roaming services.

This compensated for the decline in regular outbound voice and international services.

“The persistent demand for the company’s customizable postpaid plans bundled with the latest and top-of-the-line phone offers, targeted rewards and loyalty program, and customer-centric design of concept stores all played a key role in the success of the postpaid brand,” Cu said.

Today, the postpaid segment delivers 33 percent of total mobile revenues, up from 29 percent last year, company data showed.

To complement the growth in the postpaid segment, Globe Telecom’s prepaid brands held steady year on year, with revenues at P22.4 billion, led by its mass market TM brand.

Globe’s total mobile phone subscriber base totaled 31.7 million as of end-June, up 12 percent against last year.