AYALA-LED Globe Telecom on Tuesday said its net income dropped by a tenth in the first half of the year due to increased interest expenses, depreciation charges, its share in equity losses and spectrum amortization related to the acquisition of San Miguel Corp.’s (SMC) telecom assets.
In a disclosure to the stock exchange, Globe said its net income in the first half fell 10 percent to P8.1 billion from P9 billion a year ago, as charges related to the SMC transaction were only reflected in Globe Telecom’s financials starting the third quarter of 2016.
Excluding the impact of the SMC transaction, net income would have just declined by 4 percent to P8.7 billion compared to the first half of 2016, it said.
“Globe’s core net income, which excludes the impact of non-recurring charges and foreign exchange and mark-to-market charges, likewise declined by 10 percent from P8.8 billion a year ago,” it said.
However, it said revenues soared to a new record in the first half of the year to P62.9 billion, or 5 percent higher than the P59.9 billion reported a year ago.
Mobile revenues stood at P48.3 billion as of end-June 2017, up 5 percent year-on-year, led by solid growth in mobile data. Both Globe Prepaid and TM, the company’s mass-market brand, registered 8 percent revenue growth from last year, while Globe Postpaid posted a 1 percent increase year-on-year.
Globe Telecom’s mobile subscriber base reached 59.7 million for the first half, down 3 percent from the 61.3 million subscribers reported in the same period of 2016. The decline in the cumulative mobile subscriber base was due to the change in reporting of the company’s prepaid subscribers.
Globe Telecom’s consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at P27.3 billion, up 6 percent from same period of 2016.