Globe Telecom Inc. on Tuesday reported that the company posted an all-time high net income of P8.7 billion for the first half of the year, 27 percent higher than the P6.8 billion reported in the same period last year, in spite of increases in depreciation expenses and higher non-operating charges booked during the first six months of the year.
The Company’s core net income likewise reached an all-time high of P8.6 billion in the first half of 2015, 14 percent higher than the P7.6 billion reported in same period of 2014.
“We remain confident that we can sustain this growth momentum going forward as Globe is now well-positioned and well-equipped more than ever to offer the best products and services to cater to the market’s growing demand for quality digital content, given our topnotch global and local partnerships, and backed by our improved and modernized network,” Ernest L. Cu, President and CEO of Globe Telecom, Inc., said.
He added that, “We will continue to uphold our leadership in the digital space by creating the best digital lifestyle experience for the Filipinos.”
Globe’s core net income excludes the impact of non-recurring items, foreign exchange and mark-to-market charges.
“Amidst the heightened level of competition, Globe soared to new record levels in terms of service revenues, EBITDA, net income and core net income. Once again, our data revenues exceeded our expectations, maintaining its robust double-digit growth during the first half of the year,” Cu said.
The Ayala-led company closed the first half of 2015 with record-level consolidated service revenues of P53.8 billion, 13 percent higher than the P47.7 billion reported a year ago, on the strength of robust revenue gains on mobile data and broadband.
The sustained growth trend was spurred by strong subscriber growth for both mobile and broadband, the increasing use of smartphones and other data-enabled devices, and the introduction of new products and services geared towards providing Globe subscribers easy, affordable, and hassle-free internet access and quality entertainment content, the company said.
On a sequential basis, Globe posted its highest ever consolidated service revenues of P27.6 billion in the second quarter of the year, outpacing both the record-level revenues in the seasonally-strong fourth quarter of 2014 of P26.3 billion and last quarter’s P26.2 billion.
The mobile business posted 10-percent year-on-year growth in revenues, reaching P41.6 billion in the first half of the year from the P37.8 billion reported in the same period of 2014, due to the strong contributions across all brands.
Globe Postpaid revenues for the first semester of 2015 were up 8 percent year-on-year due to the higher customer base. TM, the company’s mass-market brand, also improved by 15 percent year-on-year, while Globe Prepaid grew by 8 percent.
The company said that at the end of June 2015, Globe’s mobile subscriber base reached 48.4 million, up a solid 13 percent from the 42.7 million a year ago driven by record gross acquisitions this period.
The healthy growth in mobile revenues was fueled by the surge in mobile data revenues, which reached P9.5 billion as of end-June, up 53 percent from the P6.2 billion reported a year ago.
Moreover, broadband revenues stood at P7.6 billion as of end June 2015, with a total subscriber base now approaching 3.5 million.
For the first six months of the year, Globe registered a new all-time high in consolidated EBITDA of P22.7 billion, 19 percent higher than the P19.1 billion reported in the same period last year.
The growth of operating expenses and subsidy of 9 percent year-on-year to P31.2 billion from P28.6 billion last year was more than offset by the 13 percent increase in consolidated revenues.
Globe spent about P11.4 billion in capital expenditures as of the first half of the year to support the growing subscriber base and its demand for data.
To date, Globe has a total of 26,874 base stations, with over 16,900 for 4G, to support the service requirements of its subscribers.
Mobile service revenues, which accounted for 77 percent of consolidated service revenues as of end-June, improved to P41.6 billion, up 10 percent from last year’s level of P37.8 billion. This was due mainly to the robust revenue contributions from mobile data coupled with the continued subscriber expansion across all mobile brands, increased daily average prepaid top ups, and higher monthly service fees on postpaid.
Mobile voice revenues, which accounted for 45 percent of total mobile service revenues, grew by 7 percent to P18.6 billion from P17.3 billion in the same period last year, due to the continued popularity of unlimited and bulk domestic voice subscriptions, offsetting the decline in pay-per-use domestic voice and international voice services. Against last quarter, mobile voice revenues were up by 4 percent.
Mobile SMS which accounted for 32 percent of total mobile service revenues, closed the first six months of the year at P13.4 billion, lower than last year’s level of P14.2 billion, due to the increasing popularity of alternative chat applications such as Facebook, WhatsApp, and Viber.