Globe’s 2011 mobile phone subscribers up 13% to 30M
Mobile phone subscribers of Globe Telecom grew 13 percent to over 30 million in 2011, from 26.5 million a year earlier, its president and CEO Ernest Cu said in a press briefing Monday.
“Despite tough competition, our growth momentum is quite strong in total acquisition of subscribers and total revenues, and we sustained it in all market segments,” Cu said.
Globe’s subscriber base as of end-2011is less than half of rivals’ combined 65 million subscribers — Smart and Sun Cellular — of Philippine Long Distance and Telephone Co.
Last year, Globe's revenues rose 9% to P67.8 billion from the P62 billion a year earlier owing to high service revenues from mobile and broadband.
The higher number of postpaid and prepaid subscribers and strong brand loyalty allowed the company to grow in revenue terms, said Cu.
However, the absence of a one-time gain kept Globe’s net income nearly flat, growing by just 1 percent to P9.8 billion from P9.1 billion, the company said in a statement to the Philippine Stock Exchange.
The 2010 one-time gain refers to a P526 million adjustment in service revenues when the company credited its expired pre-paid loads to reflect on its balance sheet.
Service revenues reached "all-time" high at P67.8 billion, up 9 percent from P62 billion.
Operating expenses and subsidy, meanwhile, rose 13 percent to P32.707 billion from P29.016 billion.
"Higher operating costs were driven by marketing and subsidy to support the aggressive subscriber acquisition campaigns, the launch of new products, services, and mobile devices, and the roll out of new concept Globe Stores that have now become the industry benchmark," the company said.
Cu said the Globe's investments have placed Globe Telecom in a good position to sustain growth.
"The next two years will be a critical period for Globe as we execute on our network modernization programs, and as we improve our business support systems and processes, all towards our goal of making customer experience a key differentiator," Cu noted.
Globe's postpaid subscribers increased 36 percent to 1.5 million from 1.1 million. Moreover, its prepaid subscriptions rose 50 percent to 1.6 million from 786,000.
Cu said Globe postpaid now has the most differentiated offer with its worry-free plans, no bill shock guarantee, warranty for newly acquired plans and exclusive 24/7 access to expanded customer service channels.
He said the rise in Globe prepaid subscriptions was boosted by the all-network offers and a new campaign focusing on the aspirations of the Filipino youth.
With the merger of PLDT and sun Celluar operator Digital Telecommunications Inc., Globe has to aggressively compete in the industry.
Globe has launched a $790-million five-year expansion program starting this year until 2016, anticipating growing demand for broadband and mobile data use.
With the rapid penetration of social media and affordable smart phones, broadband and data business are expected to sustain growth this year, the company said. — With Cheryl Acribal/VS, GMA News
“Despite tough competition, our growth momentum is quite strong in total acquisition of subscribers and total revenues, and we sustained it in all market segments,” Cu said.
Globe’s subscriber base as of end-2011is less than half of rivals’ combined 65 million subscribers — Smart and Sun Cellular — of Philippine Long Distance and Telephone Co.
Last year, Globe's revenues rose 9% to P67.8 billion from the P62 billion a year earlier owing to high service revenues from mobile and broadband.
The higher number of postpaid and prepaid subscribers and strong brand loyalty allowed the company to grow in revenue terms, said Cu.
However, the absence of a one-time gain kept Globe’s net income nearly flat, growing by just 1 percent to P9.8 billion from P9.1 billion, the company said in a statement to the Philippine Stock Exchange.
The 2010 one-time gain refers to a P526 million adjustment in service revenues when the company credited its expired pre-paid loads to reflect on its balance sheet.
Service revenues reached "all-time" high at P67.8 billion, up 9 percent from P62 billion.
Operating expenses and subsidy, meanwhile, rose 13 percent to P32.707 billion from P29.016 billion.
"Higher operating costs were driven by marketing and subsidy to support the aggressive subscriber acquisition campaigns, the launch of new products, services, and mobile devices, and the roll out of new concept Globe Stores that have now become the industry benchmark," the company said.
Cu said the Globe's investments have placed Globe Telecom in a good position to sustain growth.
"The next two years will be a critical period for Globe as we execute on our network modernization programs, and as we improve our business support systems and processes, all towards our goal of making customer experience a key differentiator," Cu noted.
Globe's postpaid subscribers increased 36 percent to 1.5 million from 1.1 million. Moreover, its prepaid subscriptions rose 50 percent to 1.6 million from 786,000.
Cu said Globe postpaid now has the most differentiated offer with its worry-free plans, no bill shock guarantee, warranty for newly acquired plans and exclusive 24/7 access to expanded customer service channels.
He said the rise in Globe prepaid subscriptions was boosted by the all-network offers and a new campaign focusing on the aspirations of the Filipino youth.
With the merger of PLDT and sun Celluar operator Digital Telecommunications Inc., Globe has to aggressively compete in the industry.
Globe has launched a $790-million five-year expansion program starting this year until 2016, anticipating growing demand for broadband and mobile data use.
With the rapid penetration of social media and affordable smart phones, broadband and data business are expected to sustain growth this year, the company said. — With Cheryl Acribal/VS, GMA News
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