Globe Telecom registers P2.9B in Q1 net income, up nearly fourfold y-o-y

(Updated 1:18 p.m.) Globe Telecom Inc. on Tuesday reported a four-fold increase in net earnings on significantly lower depreciation charges in the first quarter related to its network and IT modernization programs.

 

Net income stood at P2.9 billion, up 350 percent from P656 million a year earlier, reflecting a sharp drop in depreciation charges, the bulk of which have been incurred in 2013, the telco said n a disclosure to the Philippine Stock Exchange.

 

Core net income grew 9 percent to P3.4 billion from P3.1 billion a year earlier on robust performance of its business segments, Globe said in a separate e-mailed statement.

 

Consolidated EBITDA (earnings before income tax, depreciation and appreciation) was flat at P8.8 billion with subsidy and operating expenses higher by 15 percent to P14.4 billion from P12.6 billion on re-investments in expanding its data network.

 

Consolidated service revenues grew 9 percent to P23.2 billion from P21.4 billion as mobile and broadband customer bases expanded.

 

“We are pleased with our performance in the first quarter, as top-line growth momentum was sustained," Globe president & CEO Ernest Cu said in the statement.

 

"We have also seen encouraging improvements in mobile browsing in terms of activity and number of users as a result of the successful Free Facebook promotion and we hope to see continuous growth in mobile internet adoption among our customers moving forward,” he added.

 

Mobile revenues improved by 8 percent to P18.5 billion from P17.1 billion, the broadband business also recorded a 12 percent jump in revenues to P2.8 billion from P2.5 billion and the fixed line data segment booked revenues of P1.3 billion, up 19 percent year-on-year. – Danessa O. Rivera/VS, GMA News