Wednesday, 14 April 2010

Globe posts 11% rise in profit to P12.6 billion

Manila Bulletin

Despite the weaker economy and intense competition in the telecom industry, Globe netted P12.6 billion earnings, up 11 percent from 2008 from non-recurring gains and lower taxes, the company announced in Tuesday’s annual stockholders” meeting. Consolidated service revenues was at P62.4 billion compared to previous year’s P62.9 billion. Mobile service revenues declined by 4 percent year on year, while broadband and fixed line data revenues grew 74 percent and 23 percent , respectively.

Although the mobile industry slowed down sharply in 2009, with industry revenues rising just one per cent versus almost 6 percent growth in 2008, the broadband industry continued to grow. Broadband subscribers increased threefold at 2.5 million.

Globe’s broadband and corporate data business sustained its rate of double-digit growth, cushioning the impact of the soft performance in the mobile business. Broadband revenues rose 74 percent to close the year at P3.3 billion from P1.9 billion in 2009.

The company’s Return on Equity (ROE) reached a record high of 26 percent, marking the fourth consecutive year the telco achieved ROEs in excess of 20 percent. Globe paid out a total of P15 Billion in cash dividends last year, giving its shareholders a highly competitive dividend yield of 14 percent.

Globe even outperformed the broader MSCI Asia Pacific Telecom Index composed of 32 telecom stocks in the region. It racked up a 30.2 percent Total Shareholder Returns (TSR), ranking fourth in the list, with Taiwan Mobile ranking first, at 43 percent, followed by Japan’s Softbank Corp, with 35.4 percent and Telekomunikasi Indonesia, with 33.9 percent. The Philippine Long Distance Telephone Co. (PLDT) was 27.3 percent.

For 2010, the company expects competition in the industry will remain intense. Price and earnings pressure will remain as the mobile industry growth slackens and given subscribers increasing preference for value offers.

Meanwhile, Globe expects the broadband market to continue growing at a robust pace with the increasing affordability of PCs and laptops and the wider availability of prepaid broadband services across the country.

Globe declared it will sustain its efforts to gain share of spend and improve its market position its market position in the mobile segment. The company will remain focused on improving customer service, enhancing network quality, introducing game-changing product offers and maintaining a pervasive distributive network.

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