Globe’s 1H net profit down 3%

6 Aug 2008

Globe Telecom, the Philippines’ second biggest telecommunications firm, yesterday posted its first-half 2008 financial results, showing net profit dipped 3% year-on-year to PHP6.21 billion (USD140.8 million), against PHP6.43 billion a year ago. The operator, a unit of conglomerate Ayala Corp and Singapore Telecommunications, said core net income dropped from PHP7.38 billion to PHP6.68 billion over the same period, while service revenues fell slightly from PHP31.62 billion to PHP31.11 billion. Globe says it expects low single-digit growth in revenues this year as rising annual inflation in the country reduces demand for its services. Nonetheless Globe ended June with 22.7 million registered SIMs, up 25% on the year-earlier figure, thanks to 1.5 million net additions in Q2 2008 alone.

Earlier this month Globe announced it had secured a PHP4 billion five-year loan facility to fund its capital spending programme in 2008, signing a loan agreement with the country’s second-biggest bank Banco de Oro Unibank. According to TeleGeography’s GlobalComms database, Globe controlled 36.22% of the cellular market at 31 March, behind Smart Communications with 54.66%, and says it is setting aside USD400 million to USD450 million for CAPEX this year. It has already secured a PHP2.5 billion five-year loan with the Metropolitan Bank & Trust Co and a 3-5 year loan of PHP5 billion with Standard Chartered Bank.

Philippines, Globe Telecom (incl. Innove)