Philippines News: FREE

Get an edge on the Philippine Stock Market in this comprehensive tool for Filipinos and foreign investors.
Get it on Google Play

Tuesday, May 13, 2014

Globe enjoys 350 pct surge in 1Q profit on non-recurring gain

Globe Telecom on Tuesday reported a 350 percent increase in net income in the first quarter of this year as the Ayala-led telco accelerated last year the depreciation of new equipment brought about by its network upgrade.

In a statement, Globe said its net income reached P2.9 billion in the January to March period from P656 million in the same three months of last year.

Globe attributed the sharp increase to the "significant decrease in depreciation charges, as the bulk of the accelerated depreciation charges, which are related to assets to be replaced in Globe’s network and IT modernization programs, have been incurred in 2013. "

In 2012, Globe embarked on a $790 million network modernization and IT system upgrade.

To date, over 90 percent of the network is already on 4G HSPA+, providing faster mobile browsing experience for Globe’s subscribers.

To support the requirements of its subscribers for 2G, 3G and 4G services, Globe has a total of 22,813 base stations, including over 8,400 4G base stations.

Globe’s core net income, which excludes the impact of these non-recurring accelerated depreciation charges, improved from P3.1 billion to P3.4 billion in the first quarter of the year.

Consolidated service revenues amounted to P23.2 billion, nine percent higher than the P21.4 billion last year.

Globe said the revenue gains were driven by strong contribution across all business segments given the growth in both mobile and broadband customer bases, the sustained demand for data connectivity and the introduction of market-relevant promotions during the quarter.

“We are pleased with our performance in the first quarter, as top-line growth momentum was sustained. We have also seen encouraging improvements in mobile browsing in terms of activity and number of users as a result of the successful Free Facebook promotion and we hope to see continuous growth in mobile internet adoption among our customers moving forward,” Ernest Cu, Globe president and chief executive said.

“Given these results, we remain confident in sustaining the growth throughout the year as Globe moves closer to the completion of our network and IT transformation programs. Looking ahead, Globe will continue with our commitment in providing more exciting promotions and innovative offers in order to create a wonderful world for our valued customers and shareholders,” he added.

Mobile revenues improved by eight percent to P18.5 billion in the first quarter from P17.1 billion a year earlier. Globe's mobile subscriber base reached 40.7 million at the end of the first quarter this year, from 35.1 million a year ago.

Broadband revenues amounted to P2.8 billion, up from P2.5 billion in the same period last year.
Its broadband subscribers stood at 2.19 million, up 26 percent from last year's 1.74 million.

No comments:

Post a Comment