Globe Telecom income, revenues climb on back of strong data-related growth

5 May 2016

The Philippines’ second largest communications services provider Globe Telecom says consolidated service revenue for the three months ended 31 March 2016 climbed 14% year-on-year to PHP29.9 billion (USD650 million), driven by gains across data-related product segments, supplemented by sustained subscriber growth for both its mobile and fixed broadband services. Globe, which is backed by local conglomerate Ayala, noted that its performance was further boosted by the revenue contribution of its Bayan Telecommunication subsidiary, which was consolidated in H2 2015; Bayan accounted for revenue of PHP1.5 billion in the period under review. Within the overall total, Globe said that mobile revenue of PHP23.1 billion marked a 7% y-o-y increase, driven by pre-paid brands; its mass-market brand ‘TM’ increased sales by 10%, while ‘Globe Prepaid’ revenue increased by 8%. Meanwhile, ’Globe Postpaid’ sales edged up 3% on an annualised basis as the carrier closed out March 2016 with 57.3 million mobile subscribers – up 18% from 48.4 million at end-March 2015.

Globe reported that mobile data service revenues soared 62% y-o-y to PHP9.1 billion, reflecting increased smartphone penetration and the availability of more affordable devices, all backed – it claims – by its improved product plans and modernised network. That being said, Globe noted that mobile data gains were partially offset by a decline in voice call and SMS revenue, which fell by 11% and 15% respectively; mobile data accounted for 40% of total revenue at 1Q16, up from 26% a year earlier. Aided by the strong performance of its mobile broadband services, Globe said consolidated net income climbed 3% y-o-y to PHP4.3 billion; excluding extraordinary gains, core net income stood at PHP4.2 billion. Globe also posted a consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) of PHP13.0 billion, up 18%, while operating expenses and subsidy grew 11% to PHP16.8 billion. CAPEX in Q1 2016 reached PHP7.1 billion it said, ‘to support the growing subscriber base and its increasing appetite for data’.

Finally, Globe reported that its home broadband business (including Bayan), also continued its growth momentum, increasing in revenue terms by 51% y-o-y, and by subscribers (up 41%). Total broadband revenue stood at PHP3.5 billion and the subscriber base climbed to 1.1 million – fuelled by both fixed wireless broadband (up 39%) and wired broadband (43%).

Philippines, Globe Telecom (incl. Innove)