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Globe Telecom reports 12% rise in H1 profit

13 Aug 2007

The Philippines’ second biggest telecoms company, Globe Telecom, has reported first-half net profit of PHP6.4 billion (USD139.8 million) for the six months to end-June, up 12% year-on-year. The telco said its results were lifted by continued growth in both fixed and mobile operations and increased demand for services in the run-up to the mid-term elections in May. Excluding the impact of forex fluctuations and other currency gains/losses, Globe’s core net profit was up 20% at PHP7.4 billion. Consolidated service revenues rose 11% to PHP31.6 billion as customers warmed to the firm’s new pricing strategy, introduced early in the year. Globe’s profit margins remained stable at 66%, while earnings before tax reached PHP20.9 billion.

The operator reported a 30% year-on-year growth in mobile users to end the period under review with 18.1 million active SIMS. Of the total, the Globe brand contributed 1.2 million net additions, while the Touch Mobile brand accounted for 1.3 million. The fixed line business also performed strongly despite the adverse impact of the strong peso. In particular, Globe said its broadband division had tripled its subscriber base from the first half of last year, pushing revenues up 92% in the process.

Philippines, Globe Telecom (incl. Innove)

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