Globe ended the first semester of the year with consolidated service revenues of P72.9 billion, 13 percent higher than levels posted a year ago, on the back of the sustained growth across all data-related products and services. Total data revenues now account for 70 percent of total service revenues compared to 58 percent from a year earlier, as the Company continues to reap the benefits of its modernized 4G/LTE network rollout.
Consolidated EBITDA ended at P38.6 billion with EBITDA margin landing at 53 percent for the period, leading to a net income of P12 billion or 21 percent higher than the same period in 2018. Core net income stood at P12 billion, up 18 percent from P10.2 billion reported a year earlier.
“We are pleased with the Company’s robust performance and that we are on track with our strategic objectives for this year. We will continue to invest in our 4G and LTE network to enhance the customer experience and reinforce our competitive advantage moving forward.” Ernest L. Cu, President and CEO of Globe Telecom Inc., commented.
For the first six months of the year, mobile revenues stood at P54.6 billion, surpassing the P49 billion posted in the same period of 2018 and 2 percent higher than the previous quarter. The continued strong growth of the Company’s Prepaid brands once again led to this period’s improved performance. Total mobile subscriber base is now at 92.9 million, up 11 percent from last quarter.
From a product perspective, mobile data revenues amounted to P34 billion as of the first half of the year, fueled by the sustained increase in data usage brought about by the popularity of online gaming, streaming and on-demand video content.
Mobile data remains the top contributor and grew further to account for 62 percent of mobile revenues from 48 percent a year ago. Mobile data traffic likewise nearly doubled from 390 petabytes in same period of 2018 to 764 petabytes this period boosted by the Company’s attractive data plans, as well as the rising clamor for data-intensive content. Meanwhile, mobile voice and mobile SMS revenues for the period ended at P12.3 billion and P8.3 billion, lower year-on-year by 17 percent and 24 percent, respectively.
Globe’s home broadband revenues reached P10.6 billion this period, up a solid 21 percent from a year earlier and 3 percent higher than the prior quarter. This was driven by the continued subscriber expansion in fixed wireless solutions, supported by the increasing popularity of Home Prepaid Wi-Fi. Home broadband’s continued success was enhanced by Globe’s reliable internet connectivity bundled with content that allows its customers to access and stream the best local and international entertainment such as Amazon Prime Video, DisneyLife, Fox+, iflix, and HOOQ among many others. Total home broadband subscriber base now stands at over 1.8 million, up 21 percent from a year ago.
Corporate data revenues also sustained its double-digit growth at 15 percent from the P6.3 billion reported as of end-June of 2018. This was primarily due to an increase in circuit count coupled with an increase in usage demand for both Internet and domestic services. The strong take-up of various data connectivity solutions, managed and cloud-based services also contributed to this period’s revenue growth.
Globe’s total operating expenses including subsidy amounted to P34.3 billion for the period, or 7 percent higher year-on-year, bringing consolidated EBITDA to close the first semester of 2019 at P38.6 billion, up 18 percent versus last year. Net income stood at P12 billion, up 21 percent from the same period of 2018, due to the strong EBITDA growth, compensating for the depreciation charges and non-operating expenses booked for the period just ended. Core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, was at P12 billion, 18 percent higher year-on-year.
Moreover, the company’s continued investment to enhance its network’s data capacities and capabilities has resulted in overall capex spending of P19.0 billion as of the first six months of 2019. Capex allocation for data-related requirements was around 75 percent of the total expenditures for the period. This was primarily to support the increasing demand for data services and provide the most seamless experience to its customers. In the second quarter, Globe reaffirmed its commitment to further improve the state of internet in the Philippines by launching its Globe At Home Air Fiber 5G postpaid plans, making the Philippines the first country in Southeast Asia to experience commercial fifth-generation (5G) fixed wireless broadband.
Lastly, the Board of Directors approved in its meeting on Monday, August 5, the declaration of the third quarter 2019 cash dividend of P22.75 per common share payable on Aug. 30, 2019 to shareholders on record as of Aug. 19, 2019. The third quarter cash dividend payment total is about P3 billion.
