Up 19% from previous year, Globe customer base hits almost 45M

CEBU, Philippines - Globe Telecom's customer base reached a fresh record high, totaling close to 45 million at the end of the first half, a 19percent jump from 37.9 million a year earlier, courtesy of substantial subscriber uptake in its mobile and broadband businesses.

"Aggressive acquisitions in both the postpaid and prepaid business, complemented by robust demand for data connectivity, buoyed the company’s overall customer uptake. The company’s growing 3G and 4G coverage is expected to further support subscriber growth moving forward,” Globe President & CEO Ernest Cu said.  The company’s network modernization initiative, launched a few years ago, delivered the country’s most modernized telecommunications infrastructure and enabled Globe to become the first mobile operator in the Philippines to achieve 100percent 3G coverage for its entire network. Globe further expects its network to be fully equipped with the more advanced 4G HSPA+ technology, which would further boost network capacity and performance, by the end of the third quarter.

The company’s mobile customer base in the January to June period totaled 42.7 million, supported by the telecommunication provider’s sustained leadership in the postpaid segment as well as substantial acquisitions in the prepaid segment.

At the end of June this year, Globe had 2.1 million postpaid customers, up 10percent from 1.9 million at the end of June last year. The continued success of the fully customizable and best-in-class postpaid plans, together with the exclusive device offers and innovative deals helped sustain gross additions to reach 389,695 for the first six months of the year, 12percent  rise from 348,645 gross acquisitions in the same period last year.

Globe Prepaid, on the other hand, recorded gross acquisition of 7.9 million in the first half, a 27percent improvement from 6.2 million a year earlier, bringing total Prepaid subs to 19.3 million. TM generated the highest gross acquisitions with 5.4 million, a 6percent increase from 5.1 million a year earlier, resulting in total customer base of 21.3 million at the end of first half. The company’s extension of the Free Facebook promo boosted subscriber acquisitions coupled by TM’s continued aggressive acquisition efforts pushed total prepaid customers to 40.6 million.

Globe also reported that total customer base in its broadband business reached 2.2 million at the end of the second half, buoyed by a 27percent expansion in wireless broadband and 12percent customer  growth in fixed broadband business.

Globe Telecom sustained its growth momentum in the first half of the year, as core net profit increase accelerated 18percent from a year earlier, underpinned by strong performance across business segments. Mobile revenues, which accounted for 79percent of consolidated service revenues, increased 5percent to P37.8 billion during the period, supported by higher revenue contributions from mobile data and voice.

Mobile voice revenues, which accounted for 46percent of total mobile service revenues, grew by 9percent from a year earlier, due to continued popularity of unlimited and bulk domestic voice subscriptions, offsetting the decline in pay-per-use domestic voice and international voice services.

Mobile browsing and other data revenues, which now accounted for 16percent of total mobile service revenues, stood at P6.2 billion in the first half, up 11percent from P5.6 billion a year earlier, underpinned by continuous demand for data services and the popularity of data-driven products and applications. (FREEMAN)