Globe net income hits record high of P16.5 B in 2015

MANILA, Philippines - Globe Telecom Inc. saw 2015 as another banner year after its net earnings and revenues hit new record highs.

“We made history again in 2015 as Globe delivered a banner year, closing 2015 with record revenues, EBITDA (earnings before income tax, depreciation and amortization) and net income. We have proven year after year our strong commitment to create and deliver value for our customers and shareholders,” Globe president and chief executive officer Ernest Cu said in a statement.

Globe’s consolidated net income reached an all-time high of P16.5 billion in 2015, up 23 percent from P13.4 billion in 2014.

The telco firm’s core net income reached P15.1 billion last year, four percent higher than the P14.5 billion in 2014.

Core net income excludes the non-recurring expenses, foreign exchange losses and one-time gains.

Globe’s all-time high net income was supported by record-high service revenues amounting to P113.7 billion in 2015, a 15 percent uptick from P99 billion in 2014.

The record-high revenue result was attributed to the rise in data consumption across Globe’s mobile, broadband, and fixed line data businesses.

Mobile revenues rose nine percent to P85.1 billion in 2015 from the previous year’s P78.1 billion amid continued solid growth on Globe postpaid (seven percent), Globe prepaid (eight percent) and the mass market brand TM (14 percent), as well as the 20 percent increase in the telco’s mobile subscriber base to 52.9 million last year from 44 million in 2014.

Broadband revenues amounted to P17.5 billion in 2015, posting a 38 percent growth from the previous year’s P12.7 billion.

Fixed line data revenues grew 40 percent to P7.7 billion in 2015 from P5.5 billion a year earlier, while fixed line voice revenues increased 23 percent to P3.4 billion in 2015 from the P2.8 billion a year ago.

Globe’s strong revenue performance was also aided by the consolidation of Bayan Telecommunications Inc. to the telco firm in the second half of 2015.

The telco’s operating expenses and subsidy posted a 14 percent increase to P67.9 billion last year from P59.8 billion in 2014 to support subscriber and data network expansion.

For 2016, Globe expects the market to remain challenging and competitive, given the shifting focus of the customer’s lifestyles and usage in a digital world.

Against this environment, Globe sees revenues increasing by high single digit this year from the 2015 level.

 “As we foresee an increasingly challenging competitive landscape moving forward, we will continue to strengthen our leadership in the digital space, gearing all our efforts toward uplifting the state of Internet services in the country and fortifying the Globe brand as a whole to be the customer’s first choice for all their data needs,” Cu said.