Globe Telecom’s Q1 core earnings up, but net income plummets 76%

8 May 2013

Globe Telecom of the Philippines booked core net earnings of PHP3.09 billion (USD75.79 million) in the first quarter of 2013, up 13% from PHP2.74 billion in the year-earlier period and 105% higher when compared to the previous quarter’s core earnings of PHP1.5 billion. However, net income after tax (NIAT) slumped 76% year-on-year to PHP656 million from PHP2.70 billion, it said in a regulatory filing.

The carrier said that consolidated service revenues reached PHP21.4 billion in the first three months of this year, up 6% from PHP20.2 billion in 1Q12, with growth being driven in the main by the mobile business, particularly from the increase in mobile data services. Globe recorded ‘record gross acquisitions’ of 7.3 million mobile users in the first quarter to help bring cumulative mobile subscriber base to 35.141 million by 31 March, of which 33.284 million are pre-paid. Mobile revenues, which accounted for 80% of consolidated service revenues as of end-March, increased by 3% year-on-year to PHP17.1 billion, aided by the expansion in unlimited voice subscriptions, unlimited SMS, and mobile browsing services. In addition, mobile data revenues contributed 55% of total mobile service revenues in the period under review, and were up by 9% on an annualised basis from PHP8.6 billion to about PHP9.5 billion. ‘Our mobile business continues to perform strongly on the back of post-paid and pre-paid acquisitions,’ said Globe Telecom president and CEO Ernest Cu, adding growth could be attributed to the success of the company’s customisable post-paid plans.

Further, the operator added that revenues from the broadband and fixed line data segments also provided solid contribution to the operator’s top line results, with the total number of broadband subscribers climbing to over 1.74 million at the close of the first quarter – broken down as 352,302 fixed (DSL) and 1.388 million wireless connections.

Philippines, Globe Telecom (incl. Innove)