Globe Telecom posts strong results in first quarter

16 May 2007

Globe Telecom has reported strong first quarter financials for the three months to 31 March 2007, although it said net income fell 25% from PHP3.5 billion (USD74.3 million) in Q12006, to PHP2.6 billion, as a result of a PHP1.2 billion non-recurring loss. Excluding the impact of the loss and also of FOREX gains/losses, Globe said its core net income reached record high of PHP3.7 billion. Revenues in the three months under review reached a high of PHP15.6 billion, up 10% y-o-y, driven by strong growth from its wireline and wireless units. EBITDA was PHP10.4 billion and the EBITDA margin was 67%.

Globe ended the first quarter with more than 16.9 million mobile users, thanks to the net addition of 1.3 million users. It attributed the gains in part to lower churn rates from both post- and pre-paid brands, both of which continue to attract new users. Elsewhere the company’s wireline unit experienced strong for consumer broadband (up 167% y-o-y) and corporate data services, and initiatives such as its call and text promotions, per-second charging and bulk voice offers, buoyed the group’s overall performance. Globe Telecom spent PHP3.1 billion in CAPEX in the first quarter, part of the PHP17 billion sum allocated for the full year. It said its 2G network is nearing completion while work on expanding its DSL footprint and plans for its W-CDMA/HSDPA rollout continue apace.

Philippines, Globe Telecom (incl. Innove)