Wednesday, May 29, 2024

Globe: We’ve toppled PLDT on all fronts

In a bold claim, Ayala-owned Globe Telecom said on Tuesday, April 7, that it has established leadership in the Philippine mobile industry on multiple business fronts, making it the top mobile brand in the country.

In photo are from (L-R) Globe executive vice president and chief operating officer Gil Genio, Globe president and CEO Ernest Cu, and Globe senior vice president for consumer mobile marketing Issa Cabreira
In photo are from (L-R) Globe executive vice president and chief operating officer Gil Genio, Globe president and CEO Ernest Cu, and Globe senior vice president for consumer mobile marketing Issa Cabreira

“Against mounting odds, we maintained a defiant and fighting stance against a long-time industry giant to achieve a phenomenal financial feat. From being a challenger brand, Globe has successfully waged a revolution in all fronts, from digital, technological and business, all the way to our corporate culture as well as making our financial growth sustainable in the long run,” said Globe president and CEO Ernest Cu.

The executive added: “The numbers reveal that we have already gained foothold in leadership in the local telco industry. We plan to sustain our momentum for the long haul as our driving force to continuously provide Filipinos with innovative products and services that will cater to their digital lifestyle.”

UPDATE: See reply of PLDT here.

As early as the fourth quarter of 2013, Globe claimed it already made significant headway in taking over the leadership position over its rival company in postpaid and mobile data businesses in terms of consolidated mobile revenue market share, continuously widening its gap as of the same period in 2014.

Meanwhile, its prepaid value brand TM has reached a virtual deadlock with Sun Cellular in the same category in terms of consolidated revenue market share, it insisted.

The company disclosed during its Annual Stockholders’ Meeting that it achieved milestone-setting financial feats last year, bannered by a new high of P99-billion consolidated service revenues, besting the previous mark of P90.5 billion in 2013 representing a 9 percent year-on-year growth.

It also generated in 2014 a core net profit growth of 25 percent to a record level of P14.5 billion and registered total consolidated earnings before interest, taxes, deductions, and amortization (EBITDA) of P39 billion, 8 percent higher than 2013. These were driven by the performance of its business segments amid sustained demand for data connectivity in its mobile and broadband businesses.

During the proceedings, the company also mentioned that its share price reached a new all-time high, closing at P 2,140 per share, up 22.3 percent from P 1,750 at the beginning of the year.

Mobile revenues, which contributed 79 percent of consolidated revenues, grew 7 percent year-on-year from the prior year’s P72.8 billion to P78.1 billion in 2014. Mobile voice revenues, which accounted for 44 percent of total mobile service revenues, posted a year-on-year increase of 7 percent.

Mobile SMS, which accounted for 37 percent of total mobile service revenues, closed the year at P29.1 billion, 1 percent above from P28.8 billion of end 2013, driven by the continued popularity of bucket and unlimited promotions.
Globe closed the year with a total mobile subscriber base of 44.0 million, up 14 percent from 38.5 million subscribers last year. Fourth quarter’s gross subscriber acquisitions registered a quarterly-high of 10.1 million subscribers, 14 percent higher than last quarter.

In postpaid business, Globe claimed the top spot hinged on revenue market share. The company dominated this aspect in 2014 bolstered by P29.9 billion in revenues, as well as a 58 percent market share in a two-player environment, versus that of its two rivals which tallied P21.7 billion for a combined 42 percent revenue market share.

In the mobile data front, Globe said it maintained its superior stance in the industry with revenues and data traffic growing faster than competition.

Globe also carried a higher volume of data traffic equivalent to 87,000 terabytes of data, a 270 percent jump from the year before because of the surge in mobile browsing and higher smartphone penetration among its customers.

Mobile browsing and other data revenues generated P14.3 billion in 2014, 23 percent higher than the previous year. These figures were higher than competition which stood at P8.1 billion, giving Globe the upper hand in revenue market share with 64 percent.


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