Globe Telecom posts 16% rise in Q2 profit

4 Aug 2009

The Philippines’ second largest telecoms group by revenues, Globe Telecom, posted net profit of PHP3.25 billion (USD67.7 million) in the April-June 2009 period, compared with PHP2.79 billion in the corresponding period of 2008, driven by strong subscriber growth and lower corporate income tax. Dow Jones Newswires reports that Globe’s second-quarter revenue also increased to PHP15.73 billion from PHP15.58 billion over the same period, helping boost the group’s first-half profit to PHP7.2 billion from PHP6.2 billion in 1H 2008 as cellular subscribers increased from 22.7 million to 25 million at the end of June. The operator did point out however that the latest subscriber figure is below the 25.6 million it recorded at the end of March this year. ‘While acquisition remains an important part of our wireless strategy, we believe that our focus should increasingly move towards promoting retention and stimulating usage, particularly in the face of a maturing market,’ said Globe president and CEO Ernest Cu. ‘We want to break the cycle of acquiring and reacquiring marginal subscribers, and are recalibrating our sales drives to deliver profitable growth and acquire better quality subscribers,’ he went on to say.

Philippines, Globe Telecom (incl. Innove)