Wednesday, April 02, 2008 Globe reports 'record' sales; sees growth to slow down
ALTHOUGH Globe Telecommunications reported a “record performance” in 2007, with consolidated service revenues of P63.2 billion, the telecommunications company expects growth to slow down this year.
Globe president and chief executive officer Gerardo Ablaza Jr. told shareholders in yesterday’s annual meeting that the rate of growth this year compared to 2007 “will be muted” because of the appreciation of the peso, which will affect the spending habits of overseas Filipinos and their families left in the Philippines.
Ablaza said the rising crude oil prices in the world market and its effect on the domestic economy, including food prices, will also adversely affect Globe’s income this year.
“We are hopeful that we will be able to weather the uncertainty hanging over the domestic and global markets, and sustain our excellent performance in 2007 into 2008,” he said.
He said that to hurdle past this year’s challenges, Globe will focus on improving cost efficiency and on increasing its market share.
Ablaza assured during the press conference following the shareholders’ meeting that improving company cost efficiency will not involve downsizing of its work force.
In the shareholders’ meeting, he said that amid the “uncertainity,” Globe will continue to focus on its fundamentals, which are to maximize growth in its core wireless business and to grow new sources of revenues through improved broadband infrastructure.
This year, Globe is allotting $400 to $450 in capital expenditures, which include investments in mobile services, wired and wireless broadband technologies.
Participation
The amount also includes the firm’s participation in a consortium that is building an international submarine cable that links the Philippines to Japan, Hong Kong, Singapore and the US.
Globe is also building another fiber optic broadband network system that will complement its existing facilities in the country, particularly in the Visayas and Mindanao.
Revenues
Ablaza described Globe’s performance last year as “very good,” with consolidated service revenues having grown 11 percent year-on-year, caused by increases in its wireless and wireline businesses.
The firm reported a net income of P13.3 billion, a growth of 13 percent compared to 2006 figures.
“We are very pleased with our strong results for 2007 despite the consistently challenging and competitive market,” Ablaza said.
At the meeting, shareholders expressed joy at the announcement of dividends per share of P116 for 2007, compared to P50 in 2006. (LAP)
