Philippines mobile operator Globe Telecom reported mixed results for Q2, with its net profit dropping on higher acquisition related costs and its subscriber base declining due to a change in how it counts prepaid users.
Globe’s consolidated net income fell 7 per cent year-on-year during the quarter to PHP4.33 billion ($85.7 million). The company said the decline was due to higher interest and depreciation expenses tied to its share in equity losses and spectrum amortisation related to the acquisition of San Miguel Corp’s telco assets.
Service revenue grew 6 per cent to PHP31.8 billion, with mobile turnover up 8 per cent to PHP24.5 billion and the home broadband segment rising 7 per cent to PHP3.88 billion. Mobile data sales increased 18 per cent to PHP10.3 billion, while SMS revenue rose 5 per cent to PHP5.86 billion. Mobile data accounted for 42 per cent of mobile revenue during the quarter.
Traditional fixed-line voice revenue fell 5 per cent from Q2 2016 to PHP896 million.
During H1 2017, Globe’s mobile subscriber base fell 3 per cent year-on-year to 59.7 million, giving it a 48 per cent share at end-June. Rival Smart, the mobile unit of PLDT, moved back into the top spot with a 51 per cent share, according to GSMA Intelligence.
Globe’s post paid user base dropped 2 per cent year-on-year to 2.5 million. Post paid net additions in the first half of 2017 stood at 366,673, 25 per cent lower than in the first half of 2016. Prepaid, which accounts for 96 per cent of Globe’s total mobile subscribers, decreased 3 per cent compared to end H1 2016, to 57.2 million.
The operator said the decline was due to a change in reporting of prepaid subscribers. Beginning Q1 2017, the company excluded from its reporting prepaid subscribers who do not reload within 90 days of a second expiry period. Previously the cut-off was after 120 days.
Globe’s home broadband user base increased 8 per cent from a year ago to 1.23 million.
The operator’s capex over H1 2017 stood at about PHP27.5 billion. It installed 1,133 LTE sites in Q2, bringing its 4G base station total to 22,800 out of more than 37,000 total sites.