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Wednesday, April 05, 2006
Globe acknowledges role of SMEs in sales growth
MANILA - Small and medium entrepreneurs who build their businesses around the mobile phone industry help telecommunications companies achieve growth.
During Globe Telecom’s annual stockholders’ meeting at the Intercontinental Hotel in Makati yesterday, company chairman Jaime Augusto Zobel de Ayala II said he recognizes the help of small and medium businesses, including those selling cell phone load, prepaid card, handsets and accessories and those providing application programming for mobile content as well as service centers.
“As we (Globe) are privileged to be stewards of thriving businesses, we are honored to have a hand in empowering others by helping them realize their own entrepreneurial aspirations,” he said.
However, Globe ended 2005 with a net income of P10.3 billion, nine percent lower than that of 2004.
Globe president Gerardo Ablaza attributed the com-pany’s decline in net income to the establishment of 1,423 cell sites in different areas in the country in 2005 alone.
As of December last year, Globe has established 5,159 cell sites nationwide
More costs
This and its marketing initiatives also caused higher network-related operating costs. Thus, consolidated earnings before interest, taxes, depreciation and amortization was down by three percent to P32 billion as operating expenses grew faster than revenues.
Ablaza said Globe also experienced the full impact of higher corporate taxes with the expiration of its tax incentives in the first quarter of 2005.
The income of Innove Communications, Globe’s wholly-owned subsidiary, became taxable last year, resulting in a three-fold increase in the company’s provision for income tax to P3.9 billion, Ablaza said.
For this year, Zobel de Ayala said Globe will have to face the effects of economic pressures on consumers’ incomes, the deregulation of the Voice over Internet Protocol, the entry of new players and the availability of new technologies. (JBN)
For Bisaya stories from Cebu. Click here. (April 5, 2006 issue)
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