Globe core income hits P11.6B

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Globe Telecom sustained its growth momentum in 2013 as core net profit increase by 13 percent to P11.6 billion, because of the strong performance of its mobile, broadband and fixed line data businesses.

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In a statement, Ernest Cu, Globe president and chief executive officer, said that, “We are happy and encouraged by what we have achieved in 2013, surpassing all our expectations.”

He added that, “We have said in the past that 2013 is a transition year and the most critical period for Globe, given the network and IT [information technology]modernization projects we undertook through the year while competing in a fast evolving market.”

The company said that the sustained growth momentum is an evidence of the underlying strengths of its superior products and services, and the differentiated customer experience it provides.

Globe’s core net income, which excludes the impact of nonrecurring accelerated depreciation charges related to assets affected by the company’s network and IT transformation programs, grew to P11.6 billion from the P10.3 billion realized in 2012.

The company’s consolidated service revenues for 2013 posted a record high of P90.5 billion, or increase of 9 percent from the P82.7 billion of 2012, driven by the continued growth in the demand for data connectivity across the mobile, broadband and fixed line data businesses, which improved by 8 percent, 20 percent and 13 percent, respectively.

The company’s net income, however, went down to P4.96 billion in 2013 from the P6.85 billion recorded in 2012.

The company added that the robust top-line results prove Globe’s sustained execution of products and promotions that remain relevant to its subscribers, backed by its improved network performance, as the company moves forward in its network and IT transformation programs.

Mobile revenues, which contributed over 80 percent of total revenues, grew 8 percent year-on-year to P72.8 billion compared to the prior year’s P67.2 billion, owing to the sustained leadership of the Globe Postpaid brand.

Globe continued to invest in acquiring and retaining high-quality postpaid customers, resulting in the growth of its subscriber base to over 2 million, up 17 percent from last year.

The continued expansion of Globe’s postpaid subscriber base resulted in the sustained growth of postpaid revenues to P27.1 billion, an 18-percent improvement year-on-year.

On the prepaid segment, revenues grew 3 percent year-on-year despite the continued pressures on yields brought about by the shift from pay-per-use to value-based bucket and unlimited offers, and the pervasiveness of multi-SIM incidence in the market.

Total mobile subscriber base reached 38.5 million at the end of December 2013, up 16 percent from the 33.1 million a year ago.

Sharp growth
Globe’s broadband businesses flourished in 2013, registering sharp growths in both revenues and customer, expanding by 20 percent and 22 percent, respectively, year-on-year.

Globe ended the year with over 2 million broadband subscribers, with the fixed DSL and nomadic broadband segments registering growths of 24 percent and 11 percent, respectively.

The company’s fixed line data segment registered revenues of P4.7 billion, P524 million, or 13 percent higher compared to revenues in 2012, mitigating the decline in traditional fixed line voice services.

Globe recorded consolidated earnings before interest, taxes, depreciation and amortization, or Ebitda, of P36.5 billion in 2013, up P1.5 billion, or 4 percent against the P35 billion registered in 2012, as revenue gains fully covered the increase in operating expenses.

“While the resilience of our performance is welcome, we will not be complacent and will strive harder in 2014. Globe has always been and will continue to be firmly committed in creating more value for our customers and shareholders,” Cu said.

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