Globe Telecom reports record profits in 2014 as all business units thrive

5 Feb 2015

Globe Telecom of the Philippines has reported a 25% year-on-year increase in core net income to a record PHP14.50 billion (USD329.4 million) in FY 2014, fuelled by continued growth at its mobile, broadband, and fixed line data businesses. In what the operator’s president and chief executive officer Ernest Cu described as a ‘banner year’ for Globe, the carrier booked its ‘best-ever consolidated service revenues, EBITDA, net income and core net income, despite intensifying competition’.

Globe recorded service revenue of PHP99.0 billion in full year 2014, a 9% increase from PHP90.50 billion in 2013, with service revenue hitting a new quarterly ‘high’ of PHP26.3 billion in Q4 2014 on the back of sustained popularity of its mobile internet, broadband and other fixed line data products. Net profit, meanwhile, soared 170% to a record PHP13.37 billion, from PHP4.96 billion in FY 2013 – despite a 23% quarter-on-quarter decline in net income in 4Q14 to PHP2.84 billion. Mobile sales climbed 7% on an annualised basis in 2014, to PHP78.1 billion, as subscriber numbers surged by 14% to 44.04 million. Globe’s boss said: ‘Reaping the benefits of our modernised network, with 100% 3G and 4G coverage, we have seen a steady and healthy growth in both our mobile and broadband businesses, surpassing all of our expectations, and we are confident in sustaining this momentum moving forward.’

The carrier also reported strong growth in broadband revenue, which climbed 22% y-o-y to almost PHP12.69 billion in 2014, while fixed line data sales rose 17% to PHP5.48 billion. Globe Telecom said that the number of subscriptions to its fixed and wireless broadband services increased by 37% last year, to 2.79 million at 31 December. However, it forecasts that the broadband market will remain tough in 2015, noting that ‘the current revenue momentum built, coupled with the adaptive platform of digital lifestyle offers to cater to the subscribers’ changing lifestyle, could further push revenues to increase by high single-digit from 2014 level’. Globe is earmarking up to USD850 million for its capital expenditure programme this year, including around USD200 million of its unused budget from 2014. ‘With the growing demand for data and internet connectivity, the company anticipates that approximately 75% of CAPEX would be related to data, including spend for deployments of LTE mobile and LTE @Home, capacity and coverage augmentation of the 3G, HSPA+ and DSL network, as well as requirements for domestic transmission and international cable capacities.’

Philippines, Globe Telecom (incl. Innove)