Globe core net income up six percent in 2016

February 8, 2017

Globe Telecom Inc. announced on Wednesday its core net income rose 6 percent last year despite the stiff competition in the telecommunications industry.

Core profits amounted to P16.01 billion last year from P15.13 billion in 2015, the company said.

Consolidated revenues went up by six percent to P120 billion last year from P113.7 billion in 2015.

Globe's net income fell by 4 percent to P15.9 billion last year from P16.5 billion in 2015.

The company said decline in net profit was due to increase in non-operating expenses plus the P1.1 billion in costs related to the acquisition of Vega Telecom Inc., as well as Globe’s share in net losses of joint venture, spectrum amortization and interest expenses related to additional debt from the VTI transaction.

Globe's mobile revenues slightly grew year-on-year, at P91.9 billion in 2016 from the P91.2 billion reported a year ago due to continued shift from core voice and texts in favor of data.

Globe’s mobile subscriber base reached 62.8 million, up a robust 12 percent from the 56.2 million subscribers in 2015.

Mobile data was the biggest contributor to total mobile revenues  with 38 percent, outpacing voice at 37 percent.  Mobile data service revenues reached P34.6 billion in 2016, 25 percent higher than the P27.7 billion reported a year ago. DMS