Globe Q3 bottom line down 50% on heels of SMC telecom deal

Expenses related to the acquisition of the telecom assets of San Miguel Corp. (SMC) weighed on the third quarter bottom line of Ayala-led Globe Telecom Inc.

The telco on Monday reported a net income after tax (NIAT) of P2.742 billion in the July to September, down 50 percent from P5.343 billion a year earlier.

Revenue for the period was unchanged at P29.5 billion, while EBITDA (earnings before interest, taxes, depreciation and amortization) fell by 1 percent to P11.9 billion.

"NIAT is lower on account of higher non-operating charges and depreciation, and costs related to the SMC transaction," said Globe President and CEO Ernest Cu.

Globe and rival PLDT Inc. entered into a co-acquisition deal covering the telecom assets of SMC for P69.1 billion in late May.

Globe's third quarter results brought the company's NIAT to P11.7 billion in January to September, down 17 percent year-on-year.

Revenue in the first nine months grew by 7 percent at P89.1 billion, while EBITDA rose by 8 percent at P37.5 billion.

"Excluding the impact of the SMC transaction and one-time gains recorded a year earlier, normalized net income would have been lower by only 2 percent," the telco said.

"Notwithstanding the serious turn in the level of competition, we are happy that the company's overall financial results remained strong and still on-track with our guidance for the year," Cu said. — VDS, GMA News