Globe Telecom posts record performance in 1st 9 months

Globe Telecom reported yesterday a record performance for the first nine months of 2000 capped by a wireless subscriber base that has grown past the two-million mark.

The company reported yesterday that revenues for the first nine months this year soared to P13.74 billion, a dramatic 111.7-percent increase from P6.49 billion during the same period in 1999. Globe’s wireless and wireline business segments contributed 77.9 percent and 14.8 percent respectively of total net operating revenues. Carrier services, which covers national and international long distance services, accounted for the remaining 72 percent.

Earnings before interest, taxes, depreciation and amortization (EBITDA) before other income (expenses) for the first nine months of the year surged 110.2 percent to P5.03 billion, from P2.39 billion for the same period in 1999 mainly as a result of strong subscriber take-up on the wireless segment.

Net income for the first nine months of 2000 increased to P1.05 billion, up by 61.6 percent from P650.6 million posted in the same period in 1999.

Globe also reported that capital expenditures during the period totalled P12 billion. Globe also anticipates continued investment in its wireless network, which accounts for 77.9 percent of revenues and the significant majority of its capital expenditure program.

"Our financial results allow us to further expand our network, and thereby better serve our customers," said Gerardo Ablaza Jr., president and CEO.

Total assets as of Sept. 30, 2000 increased by 47.6 percent to P52.1 billion, as compared to P35.3 billion as of Sept. 30, 1999.

Globe Telecom is a full-service provider offering wireline, digital wireless, international telephony, inter-exchange carrier (IXC) service, data communications and Internet services. It is the second largest wireless service provider in the Philippines, and operates the country’s largest GSM (global system for mobile) communications network. Globe Telecom is owned by Ayala Corp. (approximately 44 percent) and Singapore Telecom International (approximately 39 percent).