Globe records 6 percent revenue hike

GLOBE Telecom, Inc. closed the first half of the year with consolidated service revenues of P40.8 billion, six percent higher than last year’s P38.4 billion, the company said in a press statement.

The mobile business “sustained its strong growth momentum to end the six-month period” with revenues of P33.3 billion, six percent better than last year’s results despite the very challenging business environment, it said.

Broadband revenues sustained its double-digit expansion and were up 13 percent year-on-year to P4.1 billion with the continued strong demand for Tattoo-On-The-Go offerings.

“The mobile business thrived against the challenges posted by competition, notwithstanding peaking penetration levels driven in part by multi-SIM usage and subscribers’ preference for services offering the best value for their money,” the company said.

“The period’s mobile revenue growth is a testament to the strength of the brands that Globe has built over the past years and a result of the investments made in pioneering customizable services, improving the retail experience with the Globe concept stores, and introducing barrier-breaking product and service innovations which altogether revolutionized the industry,” It said.

Cumulative mobile subscribers stood at 31.7 million as of June, up 12 percent from the same period last year.

Globe said the growth in broadband revenues is driven by rising Internet usage, stemming from the popularity of social networking sites, the Filipinos’ constant need to communicate and be connected with loved ones who may be abroad, and the increasing affordability of access devices such as PCs, tablets and laptops.

Tattoo-On-The-Go products continue to comprise bulk of quarterly acquisitions which led to the overall growth in broadband subscriber base to 1.6 million at the end of the first half of the year, higher by 22 percent from 1.3 million in the same period last year.

Consolidated EBITDA was down two percent year-on-year from P18.0 billion to P17.7 billion as the company “continued to re-invest in marketing and subsidy to acquire new and re-contract open postpaid subscribers as well as defend its market position through brand-building initiatives and various product and service launches,” the company said. (PR)