Globe profit flat despite robust subscriber growth - Mobile World Live

Globe profit flat despite robust subscriber growth

05 AUG 2019

Globe Telecom, the largest mobile operator in the Philippines by subscribers, saw mobile revenue growth slow in the second quarter of 2019 despite strong gains in both prepaid and post-paid subscribers, as its profit rose marginally year-on-year.

The operator’s net income inched up 0.5 per cent year-on-year to PHP5.32 billion ($103 million), while service revenue increased 12.4 per cent to PHP36.9 billion.

Mobile turnover growth slowed to 4.1 per cent the April to June period to PHP27.7 billion (down from an 11 per cent increase in Q1), with robust growth in mobile data (up 35 per cent) offsetting sharp declines in voice (down 23 per cent) and SMS (down 29 per cent). Mobile data accounted for 47 per cent of total revenue.

Ernest Cu, Globe president and CEO, said in a statement: “We are pleased with the company’s robust performance and that we are on track with our strategic objectives for this year. We will continue to invest in our 4G network to enhance the customer experience and reinforce our competitive advantage moving forward.”

Home broadband revenue increased 21 per cent year-on-year in the quarter to PHP5.35 billion, as subscriptions (both fixed and fixed-wireless) also rose 21 per cent to 1.8 million at end June.

The operator, with a 57 per cent market share, added 27.8 million mobile subscribers from Q2 2018. Prepaid subs grew 44 per cent to 90.3 million and post-paid increased 6 per cent to 2.6 million.

Globe prepaid ARPU was down 13.5 per cent from the same period a year ago to PHP109, while post-paid dipped 5 per cent to PHP890.

Overall capex in the first six months of 2019 totalled PHP19 billion (down from 22.9 billion in the January to June 2018 period), with the budget for the full year set at PHP43.3 billion.



Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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