Globe: Yolanda likely to dampen Q4 revenues

MANILA, Philippines - Listed Globe Telecom said its revenue growth for the fourth quarter of the year is likely to be negatively affected by the extensive damage caused by typhoon Yolanda in Visayas.

“Notwithstanding the usual seasonal increase in both SMS (short message service) and voice traffic during the holiday season, fourth quarter revenues may not be as strong as in prior years due to softer demand for telco services in the affected areas and possible cutbacks in telco-related spending on the part of subscribers as they donate these instead to the relief and rebuilding efforts of the government and private sector,” Globe President and Chief Executive Officer Ernest Cu said.

He noted, however, that the devastation caused by the typhoon is not seen to have a long-term negative impact on the company's revenues.

"As a utility company, we have made it our priority to restore mobile services in typhoon-affected areas as soon as possible. To date, restoration efforts in the Visayas region is almost complete.  But while the recent event could have a side impact on the company’s revenues in the fourth quarter, we see the other market segments continuing to drive growth. Moving into 2014, we expect to sustain the positive momentum we have built over the past three years," Cu said.

Globe has so far pledged more than P45 million for various relief and rebuilding operations following the onslaught caused by Yolanda.