Globe’s profit surges 20% to P22.3b

Globe Telecom Inc. said Tuesday net income grew 20 percent in 2019 from a year ago on the back of higher revenues from mobile and broadband businesses. 

The telecom unit of the Ayala Group said net profit amounted to P22.28 billion last year, up from P18.62 billion in 2018. 

Globe said net income improved to P4.6 billion in the fourth quarter from P3.9 billion in the same period a year earlier.

Core income rose 20 percent to P22.45 billion in 2019 from P18.73 billion in 2018.  

“2019 proved to be another good year for Globe despite the changing industry environment. We ended 2019 with a positive set of financial results and more importantly significant gains on the network front,” Globe president and chief executive Ernest Cu said.

“These results serve as a springboard for the opportunities and challenges that lay ahead, and will help us better serve our expanded mobile and broadband customer base of over 96 million. We will continue this momentum through 2020 as we remain committed to our goal of delivering first-world internet connectivity to the Philippines,” he said.

Consolidated service revenues increased 12 percent last year to  P149 billion, fueled by the gains from data across mobile, broadband and corporate data services. 

Revenues from mobile business went up by 12 percent to P111.8 billion, surpassing the P99.5 billion reported in 2018.  Globe’s subscriber base reached 94.2 million, up 27 percent from 2018. 

The company said revenues of the Home broadband business rose 17 percent in 2019 to P21.7 billion from P18.6 billion in 2018, driven by a rising level of fixed wireless broadband users reaching close to 1.4 million. Total home broadband subscriber base exceeded 2 million, up 25 percent from a year ago. 

Corporate data revenues went up 9 percent to P12.8 billion from P11.8 billion in 2018. 

Globe said it allocated P63 billion in capital expenditures this year, which includes spill-over of capex commitments from 2019.   It said that of the P63 billion capex last year, it only spent P51 billion, 18 percent higher than a year ago. 

Bulk of the all-time high spend went to data-related requirements, comprising 79 percent, as the company continued to invest in the Philippines towards enabling Filipino families and businesses. 

The record spend allowed Globe to make significant gains and fast-track its network rollout during the year.

The company said the number of sites increased 139 percent in 2019 as it added more 3G and 4G base stations.

Topics: Globe Telecom Inc. , net income , Ayala Group
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