Globe says revenues in 1H came from multiple fronts

Globe Telecom closed the first half of 2013 with consolidated service revenues of P44.5 billion, up 9 percent from P40.8 billion in the same period last year.

The topline growth was broad-based, with the mobile, broadband, and fixed line data businesses growing by 8 percent, 25 percent and 12 percent, respectively, from last year.

Mobile revenues for the first semester of 2013 reached P35.8 billion, a P2.6-billion improvement from the first half of 2012 and even higher than the seasonally strong second half of last year.

Globe said the results were achieved despite the continuous decline in yields brought by the market’s preference for value-based offers, increasing multi-SIM incidence, and the complexity of its network and IT modernization initiatives currently ongoing.

The growth, it said, was largely driven by the continued expansion of its Globe Postpaid and TM brands, while Globe Prepaid held its ground, backed by the success of the customizable and value-based product offerings, the rising demand for mobile browsing services and the introduction of new mobile devices from Apple, Samsung, and Blackberry.

Total subscriber base reached 36.1 million at the end of the first half of the year, 14 percent higher than the same period last year.

The broadband and fixed line businesses likewise grew in the first semester of the year. Broadband revenues reached P5.1 billion in the first half of the year, fueled by the healthy demand for both wireless and wired broadband offerings.

Globe closed the first semester of the year with over 1.8 million broadband subscribers, up by 15 percent from same period last year.

Fixed line data revenues reached P2.3 billion for the first six months of the year, mitigating the decline in traditional fixed voice services.

As the company goes through its network modernization and IT transformation program, Globe said its the accelerated depreciation charges related to the change-out of network assets and IT systems have become more pronounced, reaching P7.1 billion pesos in the first six months of the year.

Excluding said non-recurring charges and foreign exchange and mark-to-market gains and losses, core net income was up 13 percent from last year’s P5.7 billion to P6.4 billion.

“We are pleased with our first half performance despite the ongoing network and IT modernization initiatives we are undertaking to serve our customers better,” Ernest L. Cu, president and CEO of Globe Telecom, said.

“We anticipate competition to escalate in the second semester given the gains we’ve realized in the past, and anticipated launches of in-demand mobile devices from Apple and Samsung in the second half of the year.”

In the first semester of 2013, Globe completed the first phase of the network modernization, changing out all of the network’s legacy access radios to state-of-the-art software defined radios (SDRs).

Globe said it is now embarking on building more sites to be able to adapt to the changing landscape of the country’s key business districts, boosting capacity and enhancing the overall network performance.

To date, 73 percent of the network is already on 4G HSPA+. As of end-June, Globe had a total of 15,670 base stations, with over 6,000 for 4G, to support the service requirements of its subscribers.

The company also completed the Submarine Fiber connection towards Coron Island last May 2013, complementing its existing submarine fiber optic links towards Boracay and Palawan.

More than 8,000 km. of fiber optic cable have been added to Globe’s existing fiber optic cable infrastructure as the Company continues to expand its optical and all IP transport network nationwide.

In relation to the IT transformation efforts, the first phase involving the migration of postpaid subscribers into the new business support system or BSS is currently under stabilization management.

Given the complexity of the undertaking, Globe said it has taken measures to ensure minimal disruption in the billing of its subscribers and to address possible concerns from affected customers.

Succeeding phases of the modernization program, covering prepaid and broadband, remain on track for completion progressively up to the earlier part of next year, it said.

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