Globe Telecom Announces Q113 Financial Results
News: Philippine telecoms operator Globe Telecom has announced financial results for Q113, ended March 31. Profit for the quarter fell 76% y-o-y to PHP656mn (US$16mn), owing to higher depreciation costs and foreign exchange losses. Excluding these effects, the profit would have grown by 13% in Q113. Revenues increased 6% y-o-y to PHP21.4bn (US$522mn) during the reported period. The operator's subscriber base grew by 13% y-o-y to reach a total of 35.15mn at end-March.
BMI View: Globe Telecom is anticipating the entry of a third operator, (after the acquisition of Digitel by PLD) and is bracing itself against strong competition in the mobile sector. The company expects data traffic to continue to grow, but this does not necessarily translate into higher revenues. As a result, Globe Telecom plans to expand its postpaid subscriber base, but, at the same time, generate greater profitability from its prepaid base, which accounts for a larger proportion. Further capital investment in network infrastructure is expected in order to cope with subscribers' growing voice and data demand.