Globe nets P6.7 B in Q1

MANILA, Philippines — Globe Telecom posted strong financial results in the first quarter, with net income rising by 40 percent year-on-year to P6.7 billion due to robust EBITDA growth which offset depreciation charges and non-operating expenses.

Globe said depreciation expenses remained high during the three-month period due to the continued network expansion and acceleration of the company’s LTE and broadband rollout.

However, the company saw EBITDA rise 24 percent to P19.9 billion during the quarter, with EBITDA margin improving to 55 percent compared to 50 percent in the same period last year.

The Ayala-led telco closed the first quarter with consolidated service revenue of P36 billion, up 13 percent from a year ago and three percent higher from the prior quarter.

The growth was mainly attributed to the sustained increase in data usage across all data-related services and products, including the wide array of content offerings, through the company’s partnerships with global content providers.

Mobile revenues for the period jumped by 11 percent year-on-year to P27 billion.

Globe said mobile data revenues amounted to P16.5. billion in the first quarter, driven by the surge in consumer spending on mobile data as promos providing the best surfing deals further gains popularity.

“I am delighted to report another remarkable performance for the first three months of 2019 with revenues and margins growing beyond our expectations,” Globe president and CEO Ernest Cu said.

Cu said the company is set to have its 5G commercial pilot launch next month.

“Through this launch, we will be able to offer our customers a whole new ecosystem of devices to enhance the way they experience data to the home. This is in line with our proven strategy of making our customers a priority, by providing them a superior digital and network experience, despite all the industry challenges that we face ahead,” he said.