Globe broadband revenues up 13%

MANILA, Philippines - Globe Telecom Inc., a joint venture between diversified conglomerate Ayala Corp. and Singapore Telecom, said revenues from its broadband services posted a double digit growth in the first half of the year due to the affordability of devices such as laptops, personal computers, and tablets.

In a statement, Globe said revenues from its broadband business jumped 13 percent to P4.1 billion during the first six months of the year from P3.649 billion on the back of rising Internet usage stemming from the popularity of social networking sites and the growing affordability of access devices.

Globe cited the continued strong demand for Tattoo-On-The-Go offerings that comprised the bulk of the company’s quarterly acquisitions resulting in the overall 22-percent growth in broadband subscriber base to nearly 1.6 million in end-June from almost 1.3 million subscribers in the same period last year.

The telecom provider said its broadband service has grown by an average of 99 percent per year in number of subscribers and 84 percent per year in service revenues between 2007 and 2011.

Globe president and chief executive officer Ernest Cu said in a statement that Tattoo has proven itself as the broadband with superior performance in terms of speed, reliability, and value-for-money plans over the years.

“While we expect competitive and market pressures to persist and even intensify, we are confident that we can build further on our momentum as we head into the second half of the year,” Cu said.

He pointed out that part of the massive $700-million network modernization program of Globe is a wider coverage of 3G and 4G services, a 10-fold increase in data capacity, and the rollout of an additional 12,000 kilometers of fiber optic cables to enhance internet speeds and service reliability.

“And with the ongoing network transformation, we expect to deliver on our promise of creating the happiest customers by providing them with the best internet experience,” he added.

Aside from performance, Globe also continuously reinventing itself by coming up with various innovative marketing and promotional strategies to create the most personalized and tailor-fit services for its internet-loving subscribers to further solidify its position as the number one broadband provider in the Philippines.

Globe reported last Tuesday that its net income fell almost 10 percent to P4.965 billion in the first half of the year from P5.499 billion in the same period last year.

The Ayala-controlled telecom provider reported that service revenues rose six percent to P40.767 billion in the first half of the year from P38.392 billion in the same period last year.

The company’s mobile business sustained its strong growth momentum with six percent to P33.281 billion from P31.39 billion followed by its broadband business with a 13-percent rise to P4.1 billion from P3.649 billion. Its fixed line data business went up by nine percent to P2.017 billion while its fixed line voice business dropped nine percent to P1.363 billion.