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Globe posts P81.5-B operating revenues, P12-B net income

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By Emmie V. Abadilla

Globe Telecom, Inc. closed the first six months of 2019, with total operating revenues of P81.5 billion, up 10 percent from the same period last year and recorded P12.047-billion net profit, with core income of P12.023 billion, both up 18 percent, driven by the telco’s sustained data revenue growth across its mobile, broadband and corporate data businesses.

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The telco posted consolidated service revenues of P72.9 billion in the first semester, or 13% higher than that of the same period last year, driven by its mobile business. which hauled in P54.6 billion, up 11% due to the performance of the prepaid brands.

Home Broadband revenues reached P10.6 billion, up 21% year-on-year fueled by the subscriber base expansion given the rise in popularity of Home prepaid Wi-Fi.

The Corporate Data business also improved by 15% from a year ago, primarily on increase in circuit count, high usage on both Internet and domestic services, and the strong take-up of various data connectivity solutions, as well as managed and cloud-based services.

On a quarterly basis, mobile revenues posted a 2% growth while, Broadband and Corporate Data revenues grew by 3% from the strong first quarter. Fixed line voice, on the other hand, declined year-on-year and quarter-on-quarter by 8% and 4%, respectively.

Globe’s total mobile subscriber base reached 92.9 million, up 11% from the first quarter of 2019 driven by the 12% customer growth in the prepaid segment.

Mobile service revenues, which accounted for 75% of Globe’s consolidated service revenues, increased from last year’s P49.0 billion to P54.6 billion as of end-June, 2019.

This was mainly attributed to the continued upswing in mobile data (+45%), partly offset by the decline in traditional voice (-17%) and mobile SMS (-24%).

Compared to prior quarter, Mobile service revenues grew by 2%. Home Broadband and fixed line businesses, which accounted for 25% of consolidated service revenues, posted a 16% year-on-year growth from P15.7 billion in 2018 to P18.2 billion in 2019. This was fueled by the robust contributions of both Home Broadband and Corporate Data business. Quarterly performance showed an improvement of 2%.

Mobile data remains to be the top contributor to Globe’s mobile business, which now accounts for 62% of total Mobile service revenues (versus 48% in 2018).

As of end-June 2019, mobile data posted revenues of P34.0 billion, up 45% from P23.4 billion posted a year ago.

On a sequential basis, mobile data revenues surpassed last quarter’s performance by 6% (P17.5 billion in 2Q’19 vs P16.5 billion in Q1’ 19) boosted by the sustained data promotions. Mobile data traffic soared to 764 petabytes this period from 390 petabytes in same period of 2018 as more of its customers adopt the digital lifestyle doing a great deal of smartphone video streaming, online gaming and viewing more content.

On the other hand, mobile non-service revenues decreased year-on-year and quarter-on-quarter by 11% and 14%, respectively. Fixed line and Home Broadband non-service revenues, for their part, increased year-on-year and quarter-on-quarter by 6% and 5%, respectively.

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