Mobile data business drives Globe income

By KEITH RICHARD D. MARIANO, GMA News

Published August 4, 2015 12:35pm

(Updated 5:21 p.m.) Income from mobile data services will likely account for half of Globe Telecom Inc.'s total revenues in the coming years.

"We are actually trending ahead of targets. We see data getting half of our revenues," Globe CFO Albert de Larrazabal told reporters on Tuesday.

The company generated P9.5 billion in revenues from mobile data service as of end-June. This represents about 18 percent of P53.8 billion in service revenues.

Income from mobile data services accounted for about 18 percent of the company’s total service revenues during the first half.

Service revenues reached a record-high P53.8 billion, increasing by 13 percent from P47.7 billion booked a year earlier.

The mobile business posted a 10-percent increase in revenues to P41.6 billion, compared with P37.8 billion a year earlier.

"Key to this growth is really the growth of data services, contributing to the 10-percent year-on-year improvement,” said Larrazabal.

Revenues from the broadband segment increased by 30 percent to P7.6 billion on rising consumer and corporate demand for data connectivity.

Nearly 3.5 million are now subscribed to Globe’s broadband service, as 64 percent more customers use wireless service and 14 percent are customers of wired services.

A 7-percent growth in voice revenues to P1.5 billion from P17.3 billion partially offset the 6 percent decline in text messaging income to P13.4 billion from P14.2 billion.

The company spent around P11.4 billion in capital expenditures during the first six months to supposedly support the growing subscriber base and demand for data.

Globe booked an all-time high core net income of P8.6 billion in the first half, up 14 percent from P7.6 billion on year. – VS, GMA News

Tags: globeearnings, globetelecom