Globe net income higher by 11%

GLOBE Telecom reported a net income after tax of P12.6 billion last year, up by 11 percent over 2008.

In a press statement, the company said its broadband and corporate data business sustained its rate of double-digit growth, despite the impact of the performance of mobile business.

The non-recurring gains and lower taxes, the company said, have helped drive growth in net income. The core net income, excluding foreign exchange and market-to-market gains and losses as well as non-recurring items increased by two percent from P11.8 billion to P12 billion.

On a full year, the company’s consolidated service revenues was at P62.4 billion compared to previous year’s P62.9 billion. It’s mobile service revenues declined by four percent from P55.4 billion in 2008 to P53.3 billion last year. The mobile business’ revenue performance, the company said, was due to the competition and subscribers’ increasing preference for value offers on the back of weak consumer economy.

However, on a quarter-on quarter basis, the mobile service revenues improved by one percent due to the increased demand during the holiday season and the increased take-up of the company’s unlimited voice offerings. Last year, the mobile business reached P23.2 million mobile subscribers.

On the broadband business, the revenue grew by 47 percent from P1.9 billion in 2008 to P3.3 billion last year. The effective brand positioning, lowered entry costs and the wider availability of its wireless broadband services have helped the broadband business reached 715, 000 subscribers last year.

Meanwhile, fixed line data revenues from the corporate and enterprise segments increased by 23 percent to P3.0 billion.

The business, the company said, continues to benefit from the sustained growth of the outsourcing and off-shoring industry as well as its efforts in increasing the capacity of its high-speed data network to support the connectivity of its corporate clients.

The company said the consolidated Ebitda (earnings before interest, taxes, depreciation and amortization) declined by three percent year on year to P36.5 billion, with lower revenues and the increased operating expenses due to the company’s expansion of its broadband networks and investments in enhancing the quality of its mobile services.

The consolidated Ebitda margin remained at 58 percent of service revenues of last year from 59 percent in 2008.

Among the services the company launched last year was the Super-Unli, ImmortalCall+ and “worldwidest campaign” which highlights a wide array of local and international call and SMS offers to its subscribers including TipIDD Card, IDD Suki, iSMS, Superduo and Super-Unli.

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