Globe: Typhoon damage likely to dampen 4Q revenue growth-A A +A
Thursday, December 19, 2013
TYPHOON Yolanda (Haiyan) is likely to dampen revenue growth in the fourth quarter following the extensive devastation in the Visayas region that could affect domestic spending.
“Notwithstanding the usual seasonal increase in both SMS and voice traffic during the holiday season, fourth quarter revenues may not be as strong as in prior years due to softer demand for telco services in the affected areas and possible cutbacks in telco-related spending on the part of subscribers as they donate these instead to the relief and rebuilding efforts of the government and private sector,” Globe President & CEO Ernest Cu said.
Cu also emphasized that the typhoon damage on the network is not expected to have long-term negative impact on revenues.
“As a utility company, we have made it our priority to restore mobile services in typhoon-affected areas as soon as possible. To date, restoration efforts in the Visayas region is almost complete. But while the recent event could have a side impact on the company’s revenues in the fourth quarter, we see the other market segments continuing to drive growth. Moving into 2014, we expect to sustain the positive momentum we have built over the past three years,” said Cu.
In addition to the company’s efforts to restore mobile services in the typhoon-affected areas, the company has so far pledged more than P45 million for various relief and rebuilding operations. The amount includes donations from the company’s employees, partners, and other stakeholders. (PR)