Globe 6-mo profit jumps by 29%

Globe Telecom saw profits surge in the first half of 2018 as revenue—led by mobile data usage—continued to grow.

Globe disclosed to the Philippine Stock Exchange yesterday that core profit from January to June this year rose by almost 29 percent to P10.3 billion as service revenues increased 7 percent to P67.3 billion from year-ago level.

The telco also announced it would increase spending for 2018, mainly to bolster its mobile network. Capital expenditures for the year were upgraded to $950 million (P50.4 billion), higher than the $850 million originally earmarked for 2018.

“We are encouraged by the positive business momentum in the first half of 2018. These results validate our strategy in driving the digital lifestyle of our customers, and reaffirm our status as the country’s leader in mobile,” Ernest Cu, CEO of Globe, said in a statement.

Globe, which ended the first semester with 65.1 million subscribers, noted that mobile revenue during the period hit P51.3 billion, with mobile data revenue increasing its share to 48 percent from 42 percent a year ago. Total mobile data revenue hit P24.7 billion in the first half of 2018. Globe attributed the increase to the upsurge in video streaming.

Its consolidated earnings before interest, tax, depreciation and amortization for the period hit P33 billion while Ebitda margin stood at 49 percent.

Globe said revenues at its home broadband unit amounted to P8.6 billion as it lured more subscribers through its fixed wireless internet packages. Its total home broadband subscriber base now stands at over 1.5 million, up 22 percent. Its corporate data business posted P5.3 billion in revenue.

Globe said it had deployed P22.9 billion of its capital spending budget during the first half of the year. It noted that 77 percent of the amount was spent on data services.