By Rosalie C. Periabras Reporter
Globe Telecom said that its service revenues in the first quarter of 2013 improved by 6 percent to P21.4 billion compared with the P20.2 billion recorded during the first quarter of last year.
“We are pleased with our financial performance in the first quarter of the year. In terms of revenue growth, Globe is actually leading the industry,” said Ernest Cu, president and chief executive officer of Globe.
Globe sustained its revenue growth trajectory driven by strong subscriber acquisitions, key product differentiation and continued optimism for the local economy.
Growth in service revenues lifted core net profit to P3.1 billion, a 13-percent jump from the P2.7 billion in the year earlier. Against the previous quarter, core net income more than doubled from stable revenues from a seasonally strong fourth quarter coupled with lower operating expenses.
“Our underlying business remains strong as early gains of our network transformation program is being felt with increased capacity, giving us room to do various product offers and offer customization benefits to subscribers,” Cu said.
Globe’s subscriber base reached a record high in the first quarter, ending the period with a total mobile subscriber base of 35.1 million, a 13-percent jump from a year earlier as the number of postpaid subscribers grew 21 percent to 1.9 million, while total prepaid subscribers rose 13 percent to 33.3 million when compared to the prepaid subscriber base at the end of last year’s first quarter.
The Ayala-led telecom company said that acquisition of new subscribers reached a record high in the first quarter, with over 7 million new subscribers choosing to be on the Globe network.
Globe said that expectations of continuing growth in the local economy following a recent upgrade of the country’s investment rating by Standard and Poor’s provide additional boost to optimism in the telecommunications industry.
In the first quarter, mobile revenues reached P17.1 billion, a 3-percent improvement from P16.6 billion in the year earlier, despite intense competition and subscribers’ continued preference for value offerings.
The company’s revenue from its broadband business soared 23 percent to P2.5 billion compared with the P2 billion a year earlier. Sustained momentum in revenue growth stemmed from sustained demand for nomadic and at-home Internet access.