Globe Telecom Inc., despite generating higher revenues, experienced a 27% decline in net income for the first half of the year. This was primarily due to the absence of a one-time gain from an asset sale and an increase in depreciation expenses.
In its quarterly report, the telecommunications giant reported a net profit of P14.38 billion for the period, down from P19.68 billion the previous year. However, total revenues increased by nearly 3% to P89.52 billion.
The company’s net income normalized in the first half without the recognition of asset sales. Last year, Globe sold a controlling interest in its data center for P10.51 billion, which inflated its bottom line.
The decline in net profits was also attributed to a 3% increase in depreciation expenses, which amounted to P22.9 billion for the period.
Despite these challenges, service revenues reached a record-breaking P80.4 billion in the first half, representing a 2% growth. This was mainly driven by the growth of data revenue in the mobile and corporate data business segments.
Revenues from the mobile business, primarily from the prepaid segment, increased by 1% to P54.8 billion. Mobile data traffic also grew by 29% to 2,814 petabytes in the first half, driven by the increasing popularity of streaming and user-generated content through social media.
The corporate data business contributed P9.1 billion in revenues, showing an 11% improvement from the previous year. This growth was attributed to the rising demand for digitalization among businesses.
“The Globe Group continues to perform well during the first half of the year, despite facing macroeconomic challenges. We were consistent in delivering revenue growth in our mobile and corporate data businesses,” said Globe President and CEO Ernest Cu.
—TYRONE JAsPER C. PIAD INQ
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