Globe Telecom Q1 net income dips on higher costs

9 May 2012

Globe Telecom of the Philippines has reported a 7% year-on-year decline in core net income to PHP2.74 billion (USD64.9 million) for the three months ended 31 March, attributed to a rise in operating costs which increased 16% y-o-y to PHP11.56 billion. The group said revenue for the January-March period climbed 6% to PHP20.2 billion from PHP19.1 billion in the same period a year ago, aided by a similar 6% expansion in mobile turnover to PHP16.6 billion from PHP15.6 billion, as mobile subscriber numbers climbed 14% to 31.025 million.

Revenue derived from broadband operations increased more quickly – by 13% – over the same period, Globe added, reaching PHP2 billion in 1Q12 as more users opted to take advantage of its promotional offers. At the end of March Globe had a total broadband base of almost 1.5 million it said, up 26% y-o-y, of which roughly 80% were wireless broadband connections.

In a statement, Globe noted that in the first quarter it had ‘reinvested part of its revenue gains in additional marketing and subsidy spending in order to acquire new subscribers, re-contract open post-paid customers, and defend its market position through various brand-building initiatives’. The carrier also said that its Q1 2012 results also reflected continued investments in network infrastructure upgrade works, including charges related to ‘massive network modernisation and IT transformation programmes’.

Philippines, Globe Telecom (incl. Innove)