Globe sees sustained 2-digit growth in broadband service

MANILA, Philippines - Ayala-led Globe Telecom Inc. expects to sustain the double-digit growth in revenues and subscriber base of its broadband service this year on the back of rising demand for data and Internet connectivity.

The company reported that broadband revenues from Globe Tattoo jumped 16 percent to P8.7 billion last year, riding high on the popularity of social networking sites and the growing affordability of access devices such as personal computers, tablets and laptops.

Tattoo’s subscriber base grew 18 percent to 1.7 million of which 77 percent were new subscribers of Tattoo On-the-Go while that of Tattoo@Home posted a 15 percent year-on-year increase.

Nikko Acosta, head of Globe’s Tattoo Broadband, said Tattoo offered trailblazing programs that provide value-for-money plans, flexibility, perks and privileges, speed as well as seamless connection.

“We attribute the sustained growth of Tattoo to the fact that the brand continues to deliver on its promise of reliable Internet connection coupled with a deep understanding of the needs of the customer in terms of value for money and product usage,” Acosta said.

He said Tattoo would continue to provide subscribers with the best broadband experience through customizable plans and offers that best fit their lifestyle and their need for constant connectivity.

Globe launched Tattoo in 2009 as a nomadic broadband service with bold and edgy imagery and value-for-money prepaid offers. 

In January 2011, Tattoo evolved into an aspirational brand for the youth, retaining its core value-for-money consumer proposition but this time leveling up the customer experience with customizable plans and services with the brand promise of “living without limits”.

Tattoo also launched its home broadband service portfolio under the Tattoo@Home brand catering to the household and family’s varied needs with customizable home broadband plans.

 For 2013, Tattoo, hopes to evolve further as a socially-relevant brand, empowering subscribers to use their social media presence in making a difference in the lives of other people.

Globe reported a 30 percent drop in net income to P6.857 billion last year from P9.832 billion in 2011 as earnings plunged 97 percent to P49 million in the fourth quarter from about P1.8 billion in the same period the previous year.

The decline in net income was traced to higher expenses brought about by the 54 percent rise in capital expenditures as well as 86 percent jump in subsidies, which allowed subscribers to acquire new phones such as the iPhone5 at a lower cost.

Globe’s revenues went up six percent to an all-time high P82.742 billion last year from a year-ago level of P77.76 billion.