MANILA, Philippines - Profits of Ayala-led Globe Telecom, Inc. fell 30% last year due to the firm's undergoing modernization program offsetting gains in service revenues.
The firm recorded P6.857 billion in net income after tax in 2012, below the P9.832 billion seen in 2011. But core net income amounted to P10.275 billion, 2% higher than the P10.030 billion in the previous year.
Globe Telecom's service revenues climbed 6% to P82.742 billion from P77.765 billion, while operating expenses went up 12% to P47.731 billion from P42.661 billion.
The telco's mobile revenues comprised bulk of of its sales last year, growing 6% to P67.189 billion from P63.538 billion. Earnings from broadband increased by 16% to P8.721 billion, while profits from fixed line data (Internet) expanded 10% to P4.167 billion.
However, fixed line voice (landline) revenues slid 9% to P2.665 billion.
Globe Telecom grew its mobile subscriber base by 10% to 33.119 million in end-2012 from 30,040 million in 2011.