Globe 1Q profits defy downturn; climb 17% y-o-y

Globe Telecom of the Philippines posted net income of PHP3.99 billion (USD83.3 million) in the first three months of this year, up 17% from PHP3.42 billion in the same period of 2007, despite the global economic downturn. The group’s first-quarter net income did, however, include an after-tax gain of PHP398 million arising from an equipment exchange transaction with a supplier. EBITDA fell to PHP9.75 billion versus PHP9.89 billion in 1Q08, while consolidated service revenues rose 3% year-on-year to PHP16 billion, in a period in which the total number of activated SIM cards reached 25.7 million. Globe Telecom, the Philippines’ second largest phone company by subscribers, is owned by Singapore Telecommunications and Philippine conglomerate Ayala Corp.