Core profit jumps 13 pct to P11.6-B
MANILA, Philippines - Telecommunications giant Globe Telecom's net profit dropped 28% to P4.96 billion in 2013.
However, Globe said core profit, which excluded non-recurring charges related to its network and IT modernization programs, jumped 13% to P11.617 billion in 2013 from P10.26 billion a year ago. In 2013, Globe incurred non-cash accelerated depreciation charges of P9.1 billion, up from P5.1 billion a year ago, which negatively affected Globe’s net income.
For the full year, Globe said consolidated service revenues rose 9% to a historic-high of P90.5 billion, from P82.7 billion in 2012, driven by strong growth of its mobile, broadband and fixed line data businesses.
However, Globe said gross revenues in the fourth quarter grew only by 2% quarter-on-quarter to P22.7 billion, in the aftermath of super typhoon "Yolanda". It noted that subscribers in central Philippines were directly affected by "Yolanda", while other subscribers cut back on spending to donate funds.
Mobile revenues, which contribute over 80% of total revenues, went up 8% to P72.8 billion in 2013, mostly due to Globe's postpaid brand. Postpaid revenues rose 18% to P27.1 billion, while prepaid revenues jumped 3% year-on-year.
Operating expenses and subsidy rose 13% to P54 billion in 2013, from P47.7 billion a year ago. The increase was attributed to Globe's sustained postpaid subsciber acquisition and retention efforts, trade and other provisions and staff-and network-related expenses.
The telco noted that higher revenues was not enough to offset the growth in operating expenses, "which were partially driven by the growth in re-contracting and advertising expenses from the launch of the Apple iPhone 5C/5S and Samsung Note 3, and additional provisions for accounts affected by the typhoon and accounts affected by bill delays in the early part of 2013."
"Notwithstanding the impact of the recent devastation in the Visayas region due to typhoon 'Haiyan,' which tempered the seasonal uplift in the fourth quarter, we still managed to end the year at a high note reaching all-time high gross consolidated revenues," Ernest L. Cu, President and CEO of Globe Telecom, said.
As of end December, Globe's total mobile subscriber base reached 38.5 million, up 16% from a year ago.
Globe gave its 38 million subscribers free mobile access to Facebook for three months until January 2014. This was extended until February 14, 2014.