Globe Telecom first quarter net income down 13 percent

May 10, 2017

Globe Telecom Inc. said net income fell by 13 percent in the first quarter mostly due to  acquiring San Miguel Corp. telco assets and aggressive network modernization. The Ayala-run telco said net income dropped to P3.8 billion in the January to March period from last year's  P4.3 billion. Core net income, which excludes non-recurring charges, and foreign exchange and mark-to-market charges, declined by 12 percent year-on-year to reach P3.7 billion from P4.2 billion in the first quarter of 2016. “We are seeing encouraging improvements this quarter, despite the temporary setback on profits as we continue to lay down the foundation to secure sustainable growth in the future,"  Ernest Cu, Globe president and chief executive said. "Our continued aggressive network modernization and upgrades using the latest technologies are all geared towards enhancing our internet services, so that our customers can have a wonderful and seamless connectivity," Cu added. Consolidated service revenues amounted to P31.1 billion, four percent higher than same period last year’s P3 billion. Mobile revenues stood at P23.8 billion, up three percent year-on-year, from the P23.1 billion reported a year ago. Total mobile subscribers was at 58.58 million from 57.27 million. Riza Maniego-Eala,  chief finance officer of Globe said the company is looking at raising between P10 billion to P20 billion this year to finance its capital expenditures. DMS