Globe Q1 profit slips 13% to P3.8B

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AYALA-LED Globe Telecom said on Wednesday that its net income dropped 13 percent in the first three months of the year on higher depreciation and interest expenses, as well as one-time costs related to its purchase of San Miguel Corp.’s telecom assets.

In a disclosure to the Philippine Stock Exchange, Globe said that its net income in the first quarter fell to P3.8 billion from P4.3 billion in the same quarter last year.

Excluding the impact of non-recurring items, Globe’s core income stood at P3.7 billion in the first three months, down 12 percent year-on-year, as gains in cash flow failed to offset the increase in depreciation expense.
The telecom firm ended the quarter with record-level consolidated service revenues of P31.1 billion, 4 percent higher than the previous year.

“We are seeing encouraging improvements this quarter, despite the temporary setback on profits as we continue to lay down the foundation to secure sustainable growth in the future,” Globe President and CEO Ernest Cu said.


“Our continued aggressive network modernization and upgrades using the latest technologies are all geared towards enhancing our internet services, so that our customers can have a wonderful and seamless connectivity,” Cu added.

Consolidated EBITDA (earnings before interest, tax, depreciation and amortization) hit a record P13.3 billion,
up 2 percent from last year. Total operating expenses and subsidy grew 5 percent year-on-year to reach P17.8 billion.

Mobile revenues stood at P23.8 billion as of end-March 2017, up 3 percent year-on-year, due to the continued strong data consumption as more customers adopt the digital lifestyle.

TM, the company’s mass-market brand, registered 7 percent revenue growth from last year, while Globe’s prepaid revenues rose 3 percent and its postpaid revenues were flat year-on-year.

Globe’s mobile subscriber base reached 58.6 million in the first three months, up 2 percent from a year earlier.
Mobile data remained the biggest contributor to total mobile revenues, which hit 42 percent in the first quarter.
Mobile data service revenues amounted to nearly P10 billion in the quarter, 8 percent higher than the previous year, as mobile data traffic grew 84 percent, driven by increased smartphone penetration which has now reached 63 percent.

On the other hand, mobile voice declined by 3 percent year-on-year while SMS increased by 3 percent.
Its home broadband business registered P3.8 billion in revenues as of end-March this year, up 9 percent from the previous year, boosted by subscriber expansion and the strong take-up of home broadband’s latest plans and bundles.

Globe spent around P8.6 billion in capital expenditures as of end-March this year, of which about 81 percent was for the data service needs of its customers.

To date, Globe has a total of 35,325 base stations, with over 22,000 base stations for 4G1

Meanwhile, Globe’s board of directors approved the second quarterly distribution of cash dividends of P22.75 per share, payable on June 7, 2017 to stockholders of record as of May 23. The total cash dividend payment for the second quarter is about P3.0 billion.

The board also approved the declaration of the second semi-annual cash dividend for holders of its non-voting preferred shares of record as of August 10, payable on August 22, 2017.

Globe provides digital wireless communication services nationwide through the brands Globe Postpaid, Globe Prepaid, Touch Mobile and Tattoo, and offers domestic and international long distance carrier services.

ANGELICA BALLESTEROS

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