Globe Telecom reports new record in customer base-A A +A
Tuesday, August 26, 2014
GLOBE Telecom’s customer base reached a new record high, totaling close to 45 million at the end of the first half, a 19 percent jump from 37.9 million a year earlier. The company credited the jump to a substantial subscriber uptake in its mobile and broadband businesses.
“Aggressive acquisitions in both the postpaid and prepaid business, complemented by robust demand for data connectivity, buoyed the company’s overall customer uptake. The company’s growing 3G and 4G coverage is expected to further support subscriber growth moving forward,” said Globe president and CEO Ernest Cu.
The company’s network modernization initiative, launched a few years ago, delivered what the company described as the country’s most modernized telecommunications infrastructure and enabled Globe to become the first mobile operator in the Philippines to achieve 100 percent 3G coverage for its entire network.
Globe said it expects its network to be fully equipped with the more advanced 4G HSPA+ technology, which would further boost network capacity and performance, by the end of the third quarter.
The company’s mobile customer base in the January to June period totaled 42.7 million, supported by the telecommunication provider’s sustained leadership in the postpaid segment as well as substantial acquisitions in the prepaid segment.
At the end of June this year, Globe had 2.1 million postpaid customers, up 10 percent from 1.9 million at the end of June last year. The continued success of the fully customizable postpaid plans, together with the exclusive device offers helped sustain gross additions to reach 389,695 for the first six months of the year, a 12 percent rise from 348,645 gross acquisitions in the same period last year.
Globe Prepaid, on the other hand, recorded a gross acquisition of 7.9 million in the first half, a 27 percent improvement from 6.2 million a year earlier, bringing total prepaid subscriptions to 19.3 million. TM generated the highest gross acquisitions with 5.4 million, a six percent increase from 5.1 million a year earlier, resulting in total customer base of 21.3 million at the end of first half. The company’s extension of the free Facebook promo boosted subscriber acquisitions coupled by TM’s continued aggressive acquisition efforts pushed total prepaid customers to 40.6 million.
Globe also reported that total customer base in its broadband business reached 2.2 million at the end of the second half, buoyed by a 27 percent expansion in wireless broadband and 12 percent customer growth in fixed broadband business.
Globe Telecom sustained its growth momentum in the first half of the year, as core net profit increase accelerated 18 percent from a year earlier, underpinned by strong performance across business segments. Mobile revenues, which accounted for 79 percent of consolidated service revenues, increased five percent to P37.8 billion during the period, supported by higher revenue contributions from mobile data and voice. (PR)
Published in the Sun.Star Cebu newspaper on August 27, 2014.