Tuesday, 5 May 2009

Philippines' Globe Telecom posts 17% growth in Q1 profits

ABS-CBNNews.com
http://abs-cbnnews.com/business/05/05/09/globe-telecom-posts-17-growth-q1-profits

Globe Telecom Inc., the country's second-largest telecommunications firm, reported a net income of P4 billion for the first three months of the year, a 17-percent growth from P3.4 billion in the first quarter of 2008.

In a statement, Globe said its revenues for the three-month period grew 3 percent to P16 billion given the steady performance of the company's wireless services as well as the sustained expansion of its broadband and wireline data business.

Revenues from Globe's wireless business grew 1 percent to P14 billion, while its wireline and broadband business rose 17 percent to close the period with record-high quarterly revenues of P2.1 billion.

Globe's cellular subscriber base grew 21 percent to 25.7 million as of end-March. While net additions remained healthy, the company said average revenues per subscriber declined as a result of continued multi-SIM usage and low usage levels of new subscribers.

Globe's broadband subscribers, on the other hand, more than doubled in the first quarter at 287,000, with users of the company's fully mobile broadband service Globe Broadband Tattoo taking up almost 75 percent of net additions.

Revenues from Globe's broadband service rose 58 percent year-on-year to close the quarter at P640 million.

"We are encouraged by the continued growth of our overall business, especially considering the challenging environment against which it was achieved," Globe President and Chief Executive Ernest Cu said.

"Moving forward, we will remain focused on enhancing our services, strengthening our brand propositions and product offers, and improving our processes to
compete effectively in this highly demanding and competitive market.," he added.

Last week, Globe obtained a $50-million loan from Export Development Canada to fund its capital expenditures.

Globe, a joint venture of Ayala Corp. and Singapore Telecom, has a spending budget of $350 million to $450 million for investments in wired and wireless broadband for residential consumers, network enhancements, and maintenance of its core 2G business this year.

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