Globe posts P10.1-B net profit from P62.9-B revenues in H1

Published August 8, 2018, 12:00 AM

by manilabulletin_admin

By Emmie V. Abadilla

Globe Telecom, Inc. ended the first half of 2018 with consolidated service revenues of P67.3 billion, from P62.9 billion in the first half of last year, and net income of P10.1 billion versus P8.1 billion in the comparative period.

Globe Telecom logo. (Manila Bulletin)
Globe Telecom logo. (Manila Bulletin)

The telco attributed its sustained topline performance to the continued expansion of its 4G and LTE network, along with the growing preference of customers for content-rich offerings and multimedia applications.

Mobile revenues reached P51.3 billion for the first six months of the year with mobile data still growing at a steady pace.

Globe’s mobile subscriber base totaled 65.1 million as of end-June 2018, up 9% from the 59.7 million subscribers in the same period last year.

From a product perspective, mobile data, the top contributor to the telco’s total mobile revenues, now accounts for 48% from 42% a year ago.

Mobile data service revenues generated a total of P24.7 billion in the first half of the year as video viewing continues to drive the high mobile data consumption, with 39% increase from 280 petabytes last year to 390 petabytes this period.

Mobile SMS and mobile voice revenues, on the other hand, posted P11.2 billion and P15.3 billion, respectively.

Globe’s home broadband business performed well in the second quarter (+4% vs. prior quarter), bringing its first half revenues to P8.6 billion.

This was largely attributed to subscriber expansion in fixed wireless solutions (+40%), coupled with the positive market response to the new and more flexible home broadband bundles and plans.

Total home broadband subscriber base now stands at over 1.5 million or 22% higher from a year ago.
Globe continues to aggressively roll out broadband lines with the company’s bid to roll out ultra-fast internet service to 2 million homes by 2020.

Globe’s corporate data business also posted P5.3 billion in revenues this period, mostly driven by higher customer base, circuit count increase, and higher usage, given the demand for various business solutions, as well as faster and reliable connectivity.

Traditional fixed line voice revenues, on the other hand, generated a total of P1.5 billion this period. On a sequential basis, corporate data revenues grew by 5% while fixed line voice revenues declined by 3% against the first quarter.

Globe’s consolidated EBITDAs (earnings before income tax, depreciation and amortization as of end-June 2018 reached P33.0 billion with EBITDA margin of 49%.

Compared to prior quarter, consolidated EBITDA increased by 5% while EBITDA margin was at 50%. Total operating expenses and subsidy ended at P34.2 billion.

Depreciation expenses remained elevated as Globe continues to expand its network with the acceleration of its LTE and broadband rollout.

Likewise, Globe’s core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, stood at P10.3 billion.

“We are encouraged by the positive business momentum in the first half of 2018,” says Ernest L. Cu, Globe President and CEO.

“These results validate our strategy in driving the digital lifestyle of our customers and reaffirm our status as the country’s leader in mobile.”

“Our efforts to further modernize our network play a critical role in our company’s performance. We believe we are well positioned to compete in this highly challenging market going forward.”

Globe spent around P22.9 billion in capital expenditures as of end-June of 2018 to support the growing subscriber base and its rapidly changing and rising demand for data.

Of the total capital expenditures spent this period, about 77% was for the data service needs of its customers. To date, Globe has a total of 39,614 base stations, with over 26,200 for 4G1 to support the service requirements of its customers.