Globe profit surges 59%

Globe Telecom Inc., the second-largest telephone company in the Philippines, posted a 59-percent gain in third-quarter profit, helped by a stronger peso.

Net income rose P3.6 billion in the three months ended Sept. 30, the company said.

During the first nine months of the year, the Ayala-owned Globe posted a P9.3-billion net incomes, up 45 percent from the same period last year, despite doubling of income taxes.

"In light of the extremely challenging market and competitive environment, we are pleased that we were able to achieve a steady growth over the last three quarters," Globe president and chief executive officer Gerardo Ablaza said.

He added: "As we move into the last quarter of the year, we will continue to pursue the level of effectiveness and the degree of focus required to execute key initiatives which will be fundamental to our future growth."

The company attributed its strong performance to the compelling value propositions of its various products. Globe’s distinct services, such as per-second charging for both local and international calls, remain unrivaled. Its "Super Sulit" tariff initiatives provide subscribers a suite of attractive pricing targeted at their specific needs, and various efforts through its lower-cost unit Touch Mobile (TM) continue to provide the most affordable services to the mass market.

Officials likewise emphasized that Globe continues to further drive 3G and broadband growth. In the third quarter, the company launched Globe Visibility to consumers. Visibility provides unlimited mobile Internet access through various access points – 3G/HSDPA, Edge, GPRS, WiFi and dial-up – for only P2,000 a month. In addition, Globelines waived the voice monthly service fee for one year for new Globelines Broadband service subscribers who are charged P995 a month for a 512-kbps connection.

To further enhance subscriber value, Globe launched its Bida Card, an electronic card that provides its subscribers discounts and promotional items at over 200 establishments nationwide.

Globe also continued to improve coverage and network quality of its 2G network, further expanding its geographic and population reach with its 5,684 cell sites as of end-September 2006. Globe’s 3G network rollout targets 1,000 sites by end of this year.

Globe executive emphasized that these various initiatives have enhanced the company’s subscriber acquisition and retention efforts, boosting its SIM base by another four percent, with net additions of 574,000, to end the quarter with a total SIM base of 14.5 million. TM continues to make significant inroads to the broad mass market, having reached 4.3 million subscribers at quarter end. It now comprises one-third of Globe’s prepaid SIM base.