MANILA, Philippines - Globe Telecom on Wednesday said its profit surged by 385 percent to P6.84 billion in the first half of 2014.
In a disclosure to the stock exchange, Globe said the growth in net income was driven by lower depreciation charges, gains from foreign exchange movements and lower interest expenses during the first six months of the year.
The telecommunications giant said its core net income, which excludes the impact of non-recurring items, jumped 18 percent to P7.58 billion in the first half.
Globe's revenues hit a record high of P47.7 billion in the January to June period, 7 percent up from P44.5 billion a year ago. In the second quarter alone, the company posted a new all-time high in quarterly revenues to P24.5 billion, 6 percent higher than year-ago figures, on the back of solid growth in its business segments and increase in subscribers for mobile and broadband services.
"Our transformation initiatives are starting to bear fruit, given the solid revenue momentum we sustained this quarter. We approach the second semester of 2014 with confidence that, with our modernized network and our commitment to innovation and customer service excellence, we can maintain the growth momentum for the balance of the year," Globe president and CEO Ernest L. Cu said.
The company, co-owned by Ayala Corp and Singapore Telecommunications, reported its mobile subscribers rose 18 percent to 42.7 million at the end of June. On the other hand, Globe's broadband subscribers stood at 2.2 milion as of end-June, up 24 percent from a year ago.
"With the growth in data services we have seen in the past couple of months and the pervasiveness of data in new technologies and applications, we envision keeping in step both in terms of the infrastructure necessary to support data services and the product and service innovations to provide the most seamless experience to our mobile and broadband customers," Globe said.