Globe H1 net income falls by 10%

9 Aug 2017

Filipino full-service operator Globe Telecom, part of the Ayala conglomerate, has reported a 10% year-on-year fall in net income to PHP8.1 billion (USD160.6 million) for the first six months of the year, down from PHP9.0 billion in H1 2016, attributing the drop in large part to costs incurred through its buyout of San Miguel Corporation’s telecoms assets in 2016. Excluding the impact of the transaction, which have only been accounted for in its financials since 3Q16, Globe said that net income would have fallen 4% y-o-y to PHP8.7 billion, while core net income – which excludes the impact of non-recurring charges and foreign exchange/mark-to-market charges – also declined by 10% y-o-y. EBITDA, however, climbed 6% to PHP27.3 billion; EBITDA margin was stable at 43%. Meanwhile, in a disclosure to the Philippine Stock Exchange (PSE) the company reported that six-month consolidated service revenues climbed 5% on an annualised basis to PHP62.9 billion – a record high – compared to PHP59.9 billion in the first six months of 2016. Within this, mobile revenue accounted for PHP48.3 billion (+5% y-o-y) driven by the popularity of mobile data, which contributed around 42% of total mobile revenues in 1H17, compared to 39% a year ago. Mobile data service revenues reached PHP20.3 billion as of end-June 2017, or 13% higher than the PHP18 billion in the year-ago period.

Globe closed out 30 June 2017 with a mobile subscriber base of 59.7 million, a 3% y-o-y decline from 61.3 million, although the company noted that the decline could be explained by a change in reporting methodology of pre-paid subscribers. Since 1Q17, Globe has altered its reporting by removing PAYG subscribers who do not reload within 90 days of the second expiry period, versus the previous 120-day cut-off.

Globe’s home broadband business generated turnover of PHP7.7 billion in H1 2017, up 8% y-o-y, as its total broadband base rose to 1.2 million, with fixed-wireless expanding 22% over the same period. Traditional fixed line voice revenues, however, posted a decline of 5% from a year ago.

Philippines, Globe Telecom (incl. Innove)