Globe cites 2014 as banner year, says net income surged 170% to P13.4B

Globe Telecom Inc. on Thursday said its net income surged by 170 percent to P13.4 billion last year from P5 billion a year earlier, driven by the record revenues in the fourth quarter and lower depreciation expenses. 

 

Core net income, which excludes the impact of accelerated depreciation and other non-recurring charges, climbed by 25 percent to P14.5 billion from P11.6 billion.

 

Globe attributed the growth to the solid performance of its mobile, broadband, and fixed line data businesses.

 

Consolidated service revenues reached a new high of P99 billion, besting the previous high of P90.5 billion in 2013.

 

“2014 is another banner year for Globe Telecom, reaching the best-ever consolidated service revenues, EBITDA, net income and core net income, despite intensifying competition," Globe president and CEO Ernest Cu said.

 

Revenues in the fourth quarter rose to an all-time quarterly high of P26.3 billion, compared with P25 billion in the third quarter and P23.2 billion from the same period in 2013.

 

Globe said this was driven by the sustained demand for data connectivity across the mobile, broadband and fixed line data businesses and the increasing affordability of the service and gadget bundle offers.

 

"Our full year results are testaments of our continued commitment in creating a complete digital experience, delivering best-in-class products and services and a whole new level of customer service experience for our customers,” Cu said.

 

This year, Globe said it expects the market to remain challenging and competitive, tempering revenue growth to high single-digit from 2014 while EBITDA margin is expected to remain around 40 percent. 

 

The telco is spending $650 million this year, of which 75 percent is dedicated to cover data upgrade coverage.

 

This includes deployments of LTE, capacity and coverage augmentation of the 3G, HSPA+ and DSL network, as well as requirements for domestic transmission and international cable capacities.

 

The balance of the capital expenditures will be allocated to business support systems in line with product innovations, and other corporate expenses. – Danessa O. Rivera/VS, GMA News