Globe's Q4 core net income drops 17%

Despite registering a dip in its fourth quarter 2015 net income, Globe Telecom Inc. is raising its capital expenditure to $750 million this year.

The telco's full-year net income rose by 23 percent.

"For 2016, the company's new capital expenditures are programmed to be approximately $750 million..." seen to finance its mobile Internet and transmission capabilities, the company disclosed to the Philippine Stock Exchange on Tuesday.

Globe saw its fourth-quarter core net income fall by 17 percent year-on-year, on the back of the weak performance of its mobile and broadband businesses.

Core net income fell to P2.418 billion from P2.911 billion, while revenues rose 15 percent to P30.3 billion.

"The quarter's record performance was mainly driven by the strong contributions from mobile (+3 percent) and broadband (+7 percent), which were partly offset by the decline in traditional voice (-8 percent) and fixed line data (-6 percent)," Globe said.

"This was likewise aided by the impact of the consolidation of Bayan (Telecommunications Inc.), providing and upside of P1.6 billion in the fourth quarter of 2015," it added.

"The robust subscriber growth for both mobile and broadband, the increasing demand for mobile data and high-speed internet connectivity for consumer and corporate clients, as well as the sustained execution excellence for the various product launches during the year, we have paved the way for Globe's continued success."

The latest figures brought Globe's full-year net income to rise by 23 percent to P16.5 billion from 2014's P13.4 billion.

"The growth in net income was also aided by one-time gains coming from the sale of a 51-percent equity stake in Yondu Inc. and the acquisition of a 98.6-percent stake in Bayan," the Ayala-led company said.

This year, the company sees a stark shift among consumers toward the digital world.

"Against this environment, the company believes that the current revenue momentum built, coupled with the adaptive platform of digital lifestyle offers to cater to the subscribers' changing lifestyles, could further push revenues to increase by a high single-digit from the 2015 level," it said.

Globe shares were down P23 or 1 percent at P1,875.00 apiece at the close of trading Tuesday, weighing down share prices on the PSE. – Jon Viktor Cabuenas/VS, GMA News