Saturday, 7 November 2009

Globe nets P9.9 B in 9 months, up 12%

Manila Bulletin

Buoyed by the growth in its broadband and fixed-line data businesses, Globe Telecom hauled in consolidated service revenues of P46.9 billion for the first nine months of 2009, inching up 1% from last year’s P46.6 billion and netted P9.9 billion earnings, up 12% from P8.8 billion in the comparative period.

Globe is headed by Ernest L. Cu, president and chief executive officer, who took over that twin positions earlier this year.

The telco’s core net income, which excludes foreign exchange and mark-to-market gains and losses and non-recurring items, was steady at P9.4 billion.

Significantly, Globe’s broadband and fixed-line data concerns skyrocketed 69% and 22% from 2008, compensating for the lower revenues from the mobile and traditional landline segments.

The telco’s mobile subscribers dipped slightly from 23.7 million to 23.1 million in the same period as the company continued to churn out marginal subscribers acquired in earlier quarters and focused its acquisition drives towards better quality subscribers.

This shift in acquisition focus has translated to some early gains, with its mass market brand TM demonstrating higher revenues and ARPUs quarter-on-quarter despite a contraction in its SIM base.

EBITDA for the period stood at P27.6 billion, 3% below last year’s level, with EBITDA margin at 59% from 61% in 2008 as operating expenses and subsidy grew faster than revenues.

The company’s broadband business continued to gain momentum as subscriber base grew almost three-fold to over half a million subscribers, beating full-year expectations. All broadband products posted record quarterly net additions, with fully mobile Internet service Globe Broadband Tattoo leading the way.

The robust subscriber growth has translated to a revenue improvement of about P907 million or 69% from last year, closing the period with P2.2 billion in revenues.

“We will accelerate our broadband capacity build to capture the growing demand for the service and to solidify the gains we have attained,” noted Ernest L. Cu, President and CEO.

“While competition remains intense, we believe that we have the right strategies to further improve the competitive position of our mobile business,” he added. “We will strengthen our brand portfolio through innovative and affordable product offerings, resume the growth of our subscriber base through quality acquisitions, while continuing to upgrade and improve the robustness of our network.”

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