Q1 net income up 43% YoY
Globe Telecom continues to post record numbers during the first three months of 2015, registering an impressive financial performance, highlighted by solid top-line growth, and EBITDA and NIAT at all-time high figures.
In its latest disclosure during the First Quarter Analysts’ Briefing, Globe officials revealed that the company generated P26.2 billion consolidated service revenues, 13% higher than 2014, while EBITDA level was at P11 billion, up 25% year-on -year. Its core net income was at P4.2 billion, a 25% rise compared to last year.
The telco also saw a 13% increase in its number of mobile customers, which now stands at 46.1 million, while broadband subscribers also reflected the same upward trend by breaching the 3 million mark, 41% higher than the same period in 2014.
The company attributed its sustained growth trajectory due to “impressive gains across all business segments, the rapid customer base expansion of both mobile and broadband, the continued strong mobile data adoption, as well as increasing smartphone penetration and the introduction of innovative products and services most relevant to Globe customers.”
“Despite an intense competitive environment, we were able to sustain our growth momentum from our banner year in 2014. We have established ourselves as the preferred telco brand in the country as manifested by our solid growth revenue and robust performance in data, mobile and broadband, and we take that as a good sign of our continued dominance in the market,” said Albert de Larrazabal, Chief Financial Officer of Globe Telecom.
According to de Larrazabal, the strong top line of Globe built on the growth of its EBITDA and core net income reflects the company’s true performance for the first quarter of 2015. EBITDA margin was at 42% from January to March 2015, up 38% against the same period in 2014. It also showed quarter-on-quarter improvement from 36% last quarter to 42% on the same period. Meanwhile, its core net income was 25% higher against the same period in 2014 which stood at P3.4 billion, driven by the record level of EBITDA, despite an increase in depreciation expenses and higher non-operating charges recognized during the period.
Globe also spent around P4.9 billion in capital expenditures in Q1 2015 to support its growing customer base and complement their demand for data and content. The company also started the deployment of its USD 500 million LTE network to serve both mobile and household data requirements, building a footprint of around 5,000 sites over the next two years on FDD1800 and TDD2600. Likewise, the recent collaboration with Huawei Technologies to fire up its SingleSON or self-organizing network technology to continuously heighten mobile user experience. So far, the telco has a total of 25,820 base stations, with over 15,900 4G facilities to support its customers’ burgeoning digital lifestyle.