Globe income up 17% to P4 billion in first quarter

MANILA, Philippines - Globe Telecom registered a 17-percent increase in its net income for the first quarter this year to P4 billion as against P3.4 billion in the same period a year earlier.

The company said the net  income includes an after-tax gain of P398 million arising from an equipment exchange transaction with an equipment supplier. Excluding foreign exchange and mark-to-market gains and losses as well as the gain from the equipment exchange transaction, core net income grew five percent to P3.7 billion from P3.5 billion a year ago. 

Consolidated earnings before interests, taxes, depreciation and amortization (EBITDA) margin was at 61 percent for the period compared to 64 percent for the same period last year and 55 percent from last quarter.

However, consolidated EBITDA and EBIT (earnings before interests and taxes) were lower one percent and two percent, as the rise in operating expenses outpaced revenue growth.

Globe also reported that it generated consolidated service revenues of P16 billion in the first quarter of 2009, three percent higher than last year given the steady performance of the company’s wireless business and the  sustained expansion of its broadband and wireline data business. 

Revenues from the wireless  business increased by about P120 million or one percent year on year to reach P14 billion, while the  wireline and broadband business grew 17 percent or about P300 million to close the period with record  high quarterly revenues of P2.1 billion.

The wireless business posted healthy subscriber growth with total SIM base expanding 21 percent to 25.7 million subscribers.  While net additions remained healthy, average revenue per subscriber declined as a result of continued multi-SIM usage and low usage levels of new subscribers.   

Meanwhile, the company’s broadband business continued to post strong growth, with over 287,000 broadband subscribers by quarter-end, more than double last year’s level.  Subscribers of the company’s fully mobile broadband service Globe Broadband Tattoo comprised almost 75 percent of the reference quarter’s net subscriber additions.  With sustained double-digit subscriber growth, broadband revenues rose 58 percent year-on-year to close the quarter at P640 million.

 “We are encouraged by the continued growth of our overall business, especially considering the challenging environment against which it was achieved. Moving forward, we will remain focused on enhancing our services,  strengthening our brand propositions and product offers, and improving our processes to compete effectively in this highly demanding and competitive market,” Globe president Ernest Cu said.

Globe recently announced that it has commercially launched its WiMAX (802.16e) service on the 2.5 Ghz band, one of the first and largest of its kind in Southeast Asia.   This service is currently available in selected key areas in South Luzon, Visayas and Mindanao, offering  broadband data only and data bundled with voice packages for P795 and P995 per month at connection speed of up to 512 kbps.

“We are excited with the progress we have made on broadband to date.  Our broadband expansion is on track and we have started to grab a higher share of the market growth. We look forward to introducing more service innovations that will deliver superior value and the best product experience for our subscribers,” Cu added.