Globe Telecom on Monday reported a core net income of P9.5 billion for the first nine months of the year, or an increase of 9 percent from last year’s P8.8 billion.
The telecommunications firm achieved the higher core income figure despite the complexity of an ongoing network and information technology (IT) modernization initiative, amid a highly competitive environment.
“Our third quarter results show that the company’s growth momentum is still intact, and that we competed well despite the complexity of the ongoing transformation projects,” said Ernest Cu, president and chief executive officer of Globe.
He added that, “We continued to deliver solid top-line growth, fueled by the robust performance of our mobile, corporate data and broadband businesses.”
The Ayala-led telecommunications company ended the first nine months of the year with net income of P3.5 billion, or a decrease of 48 percent compared to the same period of 2012.
Globe booked a core net profit of P8.7 billion in the first nine months of 2012.
The increase in core net profit was driven by stronger revenues, totaling P67.3 billion for the nine-month period, or an increase of 10 percent from the P61.3 billion a year ago.
Revenue growth continued to be broad-based, with Globe’s mobile, broadband and fixed-line data businesses delivering solid year-on-year increases of 8 percent, 22 percent and 12 percent, respectively.
“As we’re starting to reap the benefits of our new modern network and IT systems, we are well-prepared to meet the industry’s future challenges,” Cu said.
Mobile revenues rose 8 percent to P54.1 billion from P49.9 billion a year ago, once again led by Globe’s postpaid segment which surged 20 percent year-on-year.
Meanwhile, the prepaid segment held its ground, growing 3 percent over the same period.
The company said that its subscriber base reached 36.5 million as of end-September, up 14 percent versus the same period in 2012.
Meanwhile, broadband revenues leaped 22 percent to P7.8 billion during the first nine months of the year. Globe closed the period January-September with 1.9 million broadband subscribers, up by 15 percent from last year, with both fixed DSL and nomadic broadband segments registering growths of 17 percent and 14 percent, respectively.
Furthermore, the company’s fixed-line data revenues grew by 12 percent to P3.4 billion, or P374 million higher versus the same period last year, mitigating the decline in traditional fixed-voice services.
Globe’s earnings before interest, taxes, depreciation, and amortization, or Ebitda, increased from last year’s level by over P1.1 billion to close the first nine months of the year at P28.3 billion against the prior year’s P27.2 billion.
Revenue gains from mobile, broadband and fixed-line data enabled the company to fully offset the increase in expenses.
Overall expenses, which include subsidy, operating expenses and depreciation charges, grew by 21 percent year-on-year from P50.4 billion to P60.8 billion.
Ebitda margin now stands at 42 percent against 44 percent a year ago.
The company said that as of the third quarter of 2013, Globe Telecom’s network modernization remained on track. The change-out of all the network’s legacy access radios to state-of-the-art software defined radios (SDRs) has been completed.
The company also completed its submarine fiber connection toward Coron Island in May 2013, complementing its existing submarine fiber optic links toward Boracay and Palawan.
Globe said that more than 9,000 kilometers of fiber optic cable have been added to Globe’s existing fiber optic cable infrastructure, as the company continues to expand its optical and all-IP transport network nationwide.
Globe also continues to enhance its service quality with the continuing optimization and capacity upgrade of its modern network.
In relation to the IT transformation efforts, Phase 1, which involved the migration of postpaid mobile subscribers to the new business support system, is currently under stabilization management.
The ongoing stabilization efforts have resulted in marked improvements in the system performance, enhancing customer experience.
Phase 2, which covers the migration of prepaid mobile subscribers, is advancing gains in terms of development and testing from Phase 1, applying lessons improvements from Phase 1 toward delivering the desired Globe customer experience.
“We will remain focused in constantly innovating and finding new ways to deliver a differentiated customer experience and create more value for our shareholders. These are the imperatives that will keep us ahead for the rest of 2013 and beyond,” Cu said.