Globe posts P12.7-B core profit

MANILA, Philippines - Globe Telecom Inc. saw its core net income rise by 10 percent in the first nine months due to higher service revenues.

In a statement yesterday, Globe said its core net income reached P12.7 billion in the first nine months, up from the P11.6 billion a year ago.

Globe’s core net income excludes the impact of the non-recurring items, one-time gains, foreign exchange and mark-to-market charges.

The telco firm’s net income meanwhile, climbed 34 percent to P14.1 billion as of end-September from P10.5 billion in the same period last year.

Globe saw higher core net earnings in the first nine months as its consolidated service revenues grew 15 percent to P83.4 billion from the P72.7 billion in the same period in the previous year.

The company attributed the uptick in revenues “to the strong growth of data across all segments and the consolidation of the results of Bayan Telecommunications, Inc. in the third quarter of the year.”

The increase in revenues was likewise supported by the sustained subscriber growth on both mobile and broadband given rising demand for mobile data.

Revenues from the mobile business posted a nine percent year-on-year growth to P63 billion in the first nine months from P57.6 billion a year ago.

As of end-September, Globe had a mobile subscriber base of 50.1 million, a 17 percent growth from the 42.9 million a year ago.

Amid growing demand for consumer and corporate data services, Globe generated P12.4 billion worth of revenues from the broadband business in the nine-month period, a 37 percent increase year-on-year, with its subscriber base now close to four million.

The firm’s fixed line data business likewise went up 37 percent to P5.5 billion in the first nine months from P4 billion in the same period last year.

As Globe has sustained its growth momentum, company president and chief executive officer Ernest Cu said the aim is to continue to cement the firm’s leadership in the digital space.

“We remain focused in our efforts to create a wonderful experience for our customers by providing relevant products and services that cater to the growing demand for connectivity and quality digital content. It is imperative for us to continue to keep our foot on the pedal in introducing quality products and content, and enhancing our data network to deliver the premium customer service to our over 54 million subscribers,” he said.