Globe Telecom chief Ernest Cu highlighted progress in its network as a contributor to financial growth in the final quarter of 2019, which he argued left the company well-positioned for future challenges.
In an earnings statement, Cu explained Globe Telecom “ended 2019 with a positive set of financial results and more importantly significant gains on the network front”, as the operator recorded double-digit increases in profit and revenue on the back of continued growth in mobile subscribers and strong gains in its home broadband business.
“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,” Cu said.
In Q4 2019, net profit rose 20 per cent year-on-year to PHP4.6 billion ($90.6 million), while service revenue increased 10 per cent to PHP38.4 billion.
Mobile revenue increased 3.5 per cent to PHP28.8 billion, with a 23.7 per cent jump in mobile data revenue offsetting decreases in voice (20 per cent) and SMS (28 per cent). Mobile data accounted for 51 per cent of service revenue, with traffic 58 per cent.
Its mobile subscriber base rose 27 per cent to 94.2 million.
Home broadband revenue increased 23.6 per cent to PHP5.68 billion, while corporate data services were flat at PHP3.35 billion
Post-paid mobile ARPU dipped 1 per cent to PHP907, while prepaid ARPU for its Globe and TM brands declined 9 per cent to PHP108 and 7 per cent to PHP61, respectively.
Capex for the full year increased 18 per cent to PHP51 billion, 34 per cent of service revenue. The company more than doubled the number of 4G sites compared with 2018.
Globe Telecom allocated PHP63 billion to capex for 2020, which includes a spillover of PHP8 billion from 2019. It said the increase in spending will lead to higher interest expenses from additional debt as well as elevated depreciation charges.
For 2020, it expects mid-to-high single-digit growth in service revenue.Subscribe to our daily newsletter Back