Globe H1 net income up 3% at P9B

Globe Telecom Inc. posted a net income of P9 billion in the first half of 2016, up 3 percent from P8.7 billion a year earlier.

Excluding the impact of non-recurring charges, foreign exchange gains and mark-to-market charges, core net income stood at P8.8 billion, up 2 percent.

Service revenue reached P59.6 billion, up 11 percent from P53.8 billion on the back of a rise in data-related service revenue from mobile, home broadband, and corporate subscribers.

Minus the gains from subsidiary Bayan Telecommunications Inc., Globe's consolidated revenue totaled P56.9 billion, up 6 percent.

Globe posted a consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) of P25.6 billion, up 13 percent from P22.7 billion.

The telco noted spending around P17 billion in capital expenditure as of end-June to "... support the growing subscriber base and its increasing appetite for data."

"We are proud that Globe's overall results in the first half remained robust amid the heightened competitive intensity and the unique challenges and opportunities posed by increasing levels of smartphone penetration and mobile postpaid ownership in the market," Globe President and CEO Ernest Cu said in a disclosure to the Philippine Stock Exchange on Wednesday.

Globe's major rival, PLDT Inc., saw its net income drop 33 percent to P6.2 billion in the second quarter due to an impaired investment in Rocket Internet. — Ted Cordero/VS, GMA News