Globe Telecom 1Q Core Net Profit Rises 13% On Year; Surges 105% On Quarter!

Globe Telecom's core net profit in the first quarter expanded 13% from a year earlier and surged 105% from the previous quarter to PHP3.1 billion, driven mainly by its mobile business on steady subscriber growth amid stronger demand for mobile data services.

The company booked a core net profit of PHP2.7 billion in the first quarter of last year. Globe's core net profit more than doubled or up 105% when compared to the previous quarter's core net profit of PHP1.5 billion.

"Our mobile business continues to perform strongly on the back of postpaid and prepaid acquisitions," said Globe Telecom President and CEO Ernest Cu, adding growth could be attributed to the success of the company's revolutionary customizable postpaid plans.

Expectations of steady growth in its subscriber base as the company continues to reinvest in acquisitions to protect and advance its market share, will help seed the growth of the mobile business, he said.

"The strategy of reinvesting in acquisitions will enable us to sustain our topline and enhance our overall value as a business. We've always been very focused on gaining market share, the momentum we have in place will allow us to continue market advancement," Cu said, maintaining that the company is focused on quality subscriber acquisitions.

He added that the completion within the year of the company's network and IT transformation program is expected to further enhance customer experience and ensure the network is ready for the present and future demands of the market.

Globe's consolidated service revenues in the first three months of the year grew 6% to PHP21.36 billion compared with PHP20.25 billion in the year earlier as revenues from its mobile business reached PHP17.12 billion, a 3% improvement from PHP16.57 billion a year earlier.

Mobile revenues, which account for 80% of the company's total topline, drew support from the growth in domestic voice, mobile browsing and value added services as subscriber growth gained traction during the quarter.

In the first three months of the year, the company had a net addition of 2 million subscribers, more than double the net additions generated in the first quarter of last year following double-digit expansion in postpaid and prepaid subscriber growth during the period.

The company ended the quarter with a total mobile subscriber base of 35.1 million, a 13% jump from a year earlier as the number of postpaid subscribers grew 21% to 1.9 million, while total prepaid subscribers rose 13% to 33.3 million when compared to subscriber base at the end of last year's first quarter.

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