GLOBE Telecom, Inc. saw an attributable net income of P7.74 billion for the second quarter, representing a 9.5% increase from the same period last year.
Gross revenues for the second quarter reached P44.32 billion, lower by 0.38% from P44.49 billion a year ago, the company’s financial report showed.
The company’s lower expenses for the period managed to offset its lower revenues, according to Globe’s financial report.
For the April to June period, Globe’s combined expenses reached P38.93 billion, marking a drop of 1.04% from the P39.34 billion previously.
For the six-month period, the Ayala-led telecommunications company managed to eke out an increase in its attributable net income despite flat revenue growth.
Globe also registered flat earnings of P14.55 billion, up by 1.6% from last year’s P14.32 billion.
Globe’s combined revenue for the first semester reached P89.63 billion compared with last year’s P89.52 billion.
Globe’s core net income, which excludes nonrecurring items and mark-to-market gains, reached P11.7 billion, higher by 20.6% from the P9.7 billion previously.
Broken down, service revenues reached P82.23 billion, marking an increase of 2.3% from P80.4 billion a year ago.
Among its service revenues, mobile revenues accounted for the biggest share at 71%, with P58.39 billion; home broadband at P12.1 billion; corporate data at P9.79 billion; fixed-line voice at P763 million.
To date, Globe said it is expecting mobile revenues to extend its gains, citing improving data consumption across all its brands.
The company is banking on a surge in mobile data traffic, which increased by 16% to 3,256 petabytes year on year, despite its mobile subscribers declining by 28% to 59.5 million.
“We are also thrilled that our landmark tower deal is nearing completion, with 88% of the covered towers successfully transferred to the towercos as of July, and we are on track to complete this transaction within the second half of the year,” Globe President and Chief Executive Officer Ernest L. Cu said.
Globe said it has generated P85.2 billion from its tower sales after fully transferring some of its tower assets to Frontier Tower Associates Philippines, Inc. (Frontier Towers).
The telco has closed the sale of 1,037 towers valued at P13.17 billion, marking the completion of 3,529 towers to be acquired by Frontier Towers.
Rizza Maniego-Eala, Globe’s chief financial officer, said the company will complete its tower sales within the year.
“We are hoping to complete 100% of our tower sales by this year. If we only complete about 92% by the end of December, we are still on track,” she said.
In total, Globe has transferred 6,628 towers, generating a total of P85.2 billion, out of the 7,506 towers planned for the sale and leaseback arrangement.
At the local bourse, shares in the company gained P52 or 2.39% to close at P2,230 each. — Ashley Erika O. Jose
