Globe first half revenues reach P40.8 billion
Aug 09, 2012 (Menafn - The Manila Times - McClatchy-Tribune Information Services via COMTEX) --Globe Telecom Inc. delivered another record performance in the second quarter to close the first half of the year with consolidated service revenues of P40.8 billion, 6 percent higher than last year's level of P38.4 billion.
"We are very satisfied with our performance this period, allowing us to further extend our growth momentum for another quarter. This was achieved despite the challenges posed by competition that is beginning to leverage its scale advantages of having a bigger combined subscriber base and network," said Ernest Cu, president and chief executive officer of Globe.
The company's mobile business sustained its strong growth momentum to end the six-month period with revenues of P33.3 billion, 6-percent better than last year's results despite the challenging business environment.
Broadband revenues sustained its double-digit expansion and were up 13 percent year-on-year to P4.1 billion with the continued strong demand for Tattoo-On-The-Goofferings.
The mobile business thrived against the challenges posted by the competition, notwithstanding peaking penetration levels driven in part by multi-SIM usage and subscribers' preference for services offering the best value for their money.
Cumulative mobile subscribers stood at 31.7 million as of end-June, up 12 percent from the same period last year.
Tattoo-On-The-Go products continue to comprise bulk of quarterly acquisitions, which led to the overall growth in broadband subscriber base to 1.6 million at the end of the first half of the year, higher by 22 percent from 1.3 million in the same period last year.
The company said that its second quarter service revenues reached an all-time high of P20.5 billion, led by the record top line performance of the mobile business despite the step-up in competition during the period, coupled with broad-based growth from the fixed line and its broadband business.
Net earnings
Consolidated earnings before interest, taxes, depreciation, and amortization or Ebitda, was down 2 percent year-on-year from P18 billion to about P17.7 billion as the company continued to re-invest in marketing and subsidy to acquire new and re-contract open postpaid subscribers. Globe also had to defend its market position through brand-building initiatives, and various product and service launches.
Coupled with higher depreciation charges resulting from ongoing modernization efforts, net income after tax was down 10 percent from last year's P5.5 billion to P5 billion in the first half of the year.
Excluding foreign exchange and mark-to-market gains and losses as well as non- recurring items, however, core net income was up 2 percent year-on-year from P5.6 billion to P5.7 billion.
Depreciation expenses in the second quarter, however, substantially increased with the ongoing network change-out. As a result, net income after tax declined by 16 percent quarter-on-quarter from P2.7 billion to P2.3 billion.
Excluding non-recurring items such as the accelerated depreciation charges related to network upgrades, as well as foreign exchange and mark-to-market gains and losses, core net income in the second quarter rose 7 percent from P2.7 billion in the last quarter to P2.9 billion.
In the second quarter, Globe also launched a promo that gives subscribers free access to Twitter.
The company's broadband business also continued to deliver on its value proposition by combining the services from the mobile Globe Postpaid brand and Tattoo Postpaid broadband.
To extend further the reach of its international services, Globe together with SingTel introduced a new product geared for overseas Filipinos.
Globe has also re-launched one of its top-selling international call services, or what used to be Super US Direct to Globe Duo International.
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