Globe’s shares plunged by 5.52 percent to close at ₱1,984 each on Monday from P2,100 on Friday.
Metro Manila (CNN Philippines, August 5) — Globe Telecom, Inc. posted higher earnings in the first half of 2019, largely driven by growth in data consumption among its customers.
The Ayala-led firm saw its net income rise 21 percent year-on-year to ₱12 billion in January to June, attributed to higher earnings before interest, tax, depreciation and amortization; compensating for depreciation charges; and end of non-operating expenses.
Globe’s core net income stood at ₱12 billion during the period, up by 18 percent year-on-year.
The company ended the first half with consolidated service revenues of ₱72.9 billion, or 13 percent higher than a year ago, attributed to the sustained growth across all data-related products and services.
Data revenues accounted for the biggest chunk at 70 percent, up from 2018’s 58 percent share.
Strong growth in Globe’s prepaid brands drove the company’s mobile revenue to reach ₱54.6 billion, surpassing the P49 billion posted in the first half of 2018.
Globe said its total mobile subscriber base is now at 92.9 million, up by 11% from last quarter.
Mobile data accounted for the biggest share in mobile revenues at 62 percent or ₱34 billion, “fueled by the sustained increase in data usage brought about by the popularity of online gaming, streaming and on-demand video content.” Mobile data traffic, likewise, nearly doubled to 764 petabytes from 390 petabytes in the same period of 2018. A petabyte translates to a million gigabytes.
On the other hand, revenue from mobile voice and mobile SMS services slid to ₱12.3 billion and ₱8.3 billion, lower year-on-year by 17 percent and 24 percent, respectively.
Home broadband business recored ₱10.6 billion in revenues, 21 percent higher than the same period in 2018, “driven by the continued subscriber expansion in fixed wireless solutions, supported by the increasing popularity of Home Prepaid Wi-Fi.” Globe said its home broadband subscribers jumped by 21 percent to 1.8 million from a year ago.
The company said its capital spending hit ₱19 billion in the first half, 75 percent of which was allocated for data-related requirements.
“Ww are pleased with the company’s robust performance and that we are on track with our strategic objectives for this year. We will continue to invest in our 4G and LTE network to enhance the customer experience and reinforce our competitive advantage moving forward.” Globe’s President and CEO Ernest Cu was quoted as saying in a statement.
