Broadband, IT services drive Globe, PLDT growth in 1H

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Dominant carrier PLDT said its total broadband subscriber base hit 3.1 million, while aggregate revenue contribution from broadband and Internet services of P11.6 billion for the first half of 2012, 32-percent higher than last year Overall consolidated service revenues for the first six months of 2012 increased by 12 percent to P84.7 billion, including the P11.1 billion revenue contribution from Digitel Philippines and reflecting the combined effect of a 4 percent decline in wireless revenues, 1 percent decrease in fixed line revenues, and a 17-percent rise in BPO revenues. SmartBro, the wireless broadband service of its wireless subsidiary Smart Communications, had a wireless broadband subscriber base of over 1.63 million at the end of the period, over 1.1 million of whom were on SmartBro’s prepaid service. Meanwhile, PLDT’s DSL subscribers increased by over 32,000 for the first six months of 2012, bringing the total subscriber base to 775,000, while Digitel brought in an additional 102,000 DSL subscribers. Enterprise data and DSL revenues continued on their growth path on the back of a 13 percent increase in DSL revenues and an 11-percent increase in third party corporate data revenues. On the other hand, the ILD (international long distance), NLD (national long distance), and LEC (local exchange carrier) businesses posted a 6 percent decline in revenues. “The prospects for the fixed line business are promising with new services in the broadband and cloud space. In addition, we are now realizing the benefits of fixed/mobile synergies with the early success of myBro,” declared Napoleon L. Nazareno, President and CEO of PLDT and Smart. Total broadband and Internet revenues for the first six months of 2012 totaled P11.6 billion, a 32-percent growth rate year-on-year, including a P1.6 billion contribution from Digitel; broadband and Internet now account for 14 percent of consolidated service revenues. Smart wireless broadband revenues, exclusive of mobile Internet revenues, increased by 4 percent to P3.3 billion, compared with the P3.2 billion recorded in the same period last year. Moreover, mobile Internet usage continues to grow, with Smart’s mobile Internet revenues increasing by 63 percent, from P573 million at the end of March 2011 to P1.2 billion at the end of the first half of 2012. PLDT DSL generated P5.2 billion in revenues for the first half of 2012, up 13 percent from P4.6 billion for the same period in 2011. SPi Global Solutions, the BPO arm of PLDT, reported service revenues of P4.8 billion for the first half of 2012, an increase of 17 percent compared with the same period last year. Globe, meanwhile, delivered another record performance in the second quarter to close the first half of the year with consolidated service revenues of P40.8 billion, 6-percent higher than last year’s level of P38.4 billion. Its mobile business sustained its growth momentum to end the six-month period with revenues of P33.3 billion, 6-percent better than last year’s results Broadband revenues sustained its double-digit expansion and were up 13-perent year-on-year to P4.1 billion with the continued strong demand for Tattoo-On-The-Go offerings. Growth in broadband revenues was driven by rising Internet usage stemming from the popularity of social networking sites, the Filipinos’ constant need to communicate and be connected with loved ones who may be abroad, and the increasing affordability of access devices such as PCs, tablets, and laptops. Tattoo-On-The-Go products continue to comprise bulk of quarterly acquisitions which led to the overall growth in broadband subscriber base to 1.6 million at the end of the first half of the year, higher by 22 percent from 1.3 million in the same period last year. “We are very satisfied with our performance this period, allowing us to further extend our growth momentum for another quarter. This was achieved despite the challenges posed by competition that is beginning to leverage its scale advantages of having a bigger combined subscriber base and network,? Ernest L. Cu, President and CEO of Globe Telecom said. ?Also, the market’s preference for value offers continues to increase, putting more pressure on yields in our mobile business. Plus our existing network has to contend with emerging capacity constraints caused by the increased volume of voice and data traffic,? Cu added. Mobile data revenues were up 6-percent year-on-year from P15.3 billion to P16.2 billion driven by the growth in unlimited SMS, mobile browsing, and other value-added services which more than offset the decline in regular, pay-per-use SMS and inbound SMS revenues. Globe said the decline in inbound SMS revenues was driven by the NTC-mandated reduction in access charges from P0.35 to P0.15 per SMS, implemented in the last quarter of 2011. Local inbound SMS traffic, or SMS originating from other networks but terminating in Globe’s network, grew against last year, partially mitigating the impact of the reduced access charges, it noted. Globe?s broadband subscribers grew by 6 percent in the second quarter of 2012 to end the first half of the year with 1,583,996 subscribers. The increased subscriber base for both Tattoo At-Home and Tattoo On-the-Go propelled revenues for the year to P4.1 billion, 13 percent better than last year’s results with the second quarter contributing P2.1 billion to the previous quarter’s P2 billion. Demand for high-speed data nodes, transmission links and bandwidth capacity from business and enterprise clients fueled the segment’s growth to offset weaker demand for international services, Globe said. ]]>

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