Listed Filipino communications service provider Globe Telecom has reported a near seven-fold surge in net income for the first six months of this year, attributed to positive foreign exchange movements during the period. Ayala-led Globe booked net profit of PHP6.8 billion (USD155.8 million) in January-June, up 385% from the PHP1.4 billion income it reported in the same period last year. In its financial report, Globe noted that growth was fuelled ‘by the improvement in its income before interest and taxes, lower depreciation charges, gains from foreign exchange movements and lower interest expenses recognized during the period’. First-half revenue increased by 7.0% year-on-year to PHP47.7 billion from PHP44.5 billion.
Globe president and chief executive officer Ernest Cu said: ‘Our transformation initiatives are starting to bear fruit, given the solid revenue momentum we sustained this quarter. We approach the second semester of 2014 with confidence that, with our modernised network and our commitment to innovation and customer service excellence, we can maintain the growth momentum for the balance of the year.’
Globe Telecom reported robust revenue growth across all business segments – especially mobile and broadband. The operator’s mobile unit posted turnover of PHP37.8 billion, up 5.0% y-o-y from PHP35.8 billion in H1 2013, driven by strong subscriber additions for Globe Postpaid and Touch Mobile™ offerings. Globe’s broadband business also performed strongly, posting 14% and 24% annualised growth in revenue and subscribers, respectively. The company booked broadband revenue of PHP5.9 billion in the six-month period and closed out June with 2.2 million high speed customers. CAPEX in January-June reached PHP11 billion to support consumer demand for internet data.