Globe Q4 2016 core net income reaches P4.264B

Globe Telecom Inc. reported a consolidate core net income of P4.264 billion during the fourth quarter of 2016, up 45.47 percent from P2.913 billion in the third quarter.

As a result, the telco saw a 6-percent increase in core net income for the whole of 2016 as company revenues hit record highs, driven by the surge in data consumption across business segments.

In a briefing at the company's headquarters in Taguig City on Wednesday, the company said core net income reached P16.014 billion in 2016, up 5.87 percent from P15.126 billion in 2015.

"Full-year consolidated service revenues, once again, reached a new record high of close to P120.0 billion from P113.7 billion last year due to the continuous surge in data consumption across all business segments," Globe President and CEO Ernest L. Cu said.

"Notwithstanding the heightened market competition in 2016, we ended the year on a high note, marked by all-time high quarterly and full-year revenues, and record level EBITDA," he added.

Mobile revenue grew by 0.76 percent to P91.9 billion in 2016, up from P91.2 billion in 2015, driven by the shift from core voice and SMS in favor of data to digital.

“Globe Telecom’s mobile subscriber base reached 62.8 million, up by a robust 12 percent from 56.2 million reported in the same comparable period, driven by the record-level prepaid gross acquisitions during the year,” the telco said.

Globe spent some P36.7 billion or $772 million in 2016 to support the growing subscriber base and its demand for data.

“Of the total capital expenditures spent this year, about 65 percent was for the data service needs of its customers,” it said.

Globe expects the level of competition to remain high this year as users shift to digital from traditional voice and SMS.

“Market to remain highly competitive, given the continued shift of customer’s lifestyles and usage to the digital world,” Cu said. — VDS, GMA News