Globe outperforms with P8.7B H1 income

MANILA, Philippines - Ayala-led Globe Telecom Inc.’s core net income reached an all-time high of P8.6 billion in the first semester of the year, up 14 percent from the P7.6 billion a year ago supported by strong service revenues.

Core net income excludes the impact of non-recurring items, foreign exchange and mark-to-market changes.

The telco firm achieved all-time high core net earnings in the January to June period as its consolidated service revenues also hit a record high of P53.8 billion for the same period this year, a 13 percent growth from the P47.7 billion last year.

The latest revenue result was driven by the strong performances of the mobile, broadband and fixed line business segments.

In particular, mobile revenues grew by 10 percent to P41.6 billion as of end-June from last year’s P37.8 billion.

Broadband revenues rose by 30 percent to P7.6 billion in the first-half this year from P5.9 billion in the same period in 2014.

Fixed line data and voice likewise posted year-on-year upticks of 20 percent and seven percent respectively, for the first semester.

“Once again, our data revenues exceeded our expectations, maintaining its robust double digit growth during the first half of the year. We remain confident we can sustain this growth momentum going forward as Globe is now well-positioned and well-equipped more than ever to offer the best products and services to cater to the market’s growing demand for quality digital content, given our top notch global and local partnerships, and backed by or improved and modernized network. We will continue to uphold our leadership in the digital space by creating the best digital lifestyle experience for the Filipinos,” Globe president and chief executive officer Ernest Cu said.

The company’s operating expenses rose by nine percent to P31.2 billion for the January to June period this year from P28.6 billion last year.

Its net income also hit a record high of P8.7 billion in the first-half, which climbed 27 percent from P6.8 billion in the previous year.

Meanwhile, Gil Genio, executive vice president for corporate strategy and business development said the company is set to integrate its operations with Bayan Telecommunications Inc. (Bayantel).

Last month, Globe announced it has secured the green light to take over Bayantel from the National Telecommunications Commission.

On July 3, Globe converted a portion of its debt in Bayantel into equity which resulted in gaining a controlling interest in the latter.

Subsequently, Globe agreed to purchase the 70.7 million shares held by Bayan Telecommunications Holdings, Corp. and Lopez Holdings Corp. in Bayantel for P1.83 billion.

The deal raises Globe’s equity stake in Bayan to 98.6 percent from 56.9 percent.