As subscribers we felt how 2014 was for us. Now read the effect and how it translated into Globe numbers.
My initial reaction was... Eh di WOW!
Globe Telecom posts record profits in 2014
Posted at 02/05/2015 11:35 AM | Updated as of 02/05/2015 12:36 PM
MANILA, Philippines - Globe Telecom said its core net income surged 25 percent to a record P14.5 billion in 2014, on the back of continued growth of its mobile, broadband, and fixed line data businesses.
In a statement, Globe president and chief executive officer Ernest Cu described 2014 as another "banner year" for the telco, as it hit "the best-ever consolidated service revenues, EBITDA, net income and core net income, despite intensifying competition."
"Reaping the benefits of our modernized network, with 100 percent 3G and 4G coverage, we have seen a steady and healthy growth in both our mobile and broadband businesses, surpassing all of our expectations, and we are confident in sustaining this momentum moving forward," Cu said.
Net income after tax jumped 170 percent to an all-time high of P13.37 billion in 2014, from P4.96 billlion in 2013. However, quarter on quarter, net income fell 23 percent in the fourth quarter to P2.84 billion.
Globe reported a 9 percent increase in service revenues to P99 billion in 2014, from P90.5 billion in 2013. Service revenues reached a new quarterly high of P26.3 billion in the fourth quarter, driven by strong demand for data in mobile, broadband and fixed line data businesses.
Mobile revenues went up 7 percent to P78.1 billion in 2014, as Globe increased the number of subscribers by 14 percent to 44.04 million.
Globe said its free Facebook offer helped boost its mobile browsing and data revenues by 23 percent to P14.306 billion. The telco once again offered free Facebook access to subscribers from October to November, as a way to encourage subscribers to use mobile browsing.
Broadband revenues also went up 22 percent to P12.69 billion in 2014, while fixed line data revenues increased 17 percent to P5.48 billion, due to continued demand for data connectivity. The number of both wired and wireless broadband subscribers jumped 37 percent to 2.79 million as of end 2014.
However, Globe expects the market to remain challenging and competitive this year.
"Against this environment, the company believes that the current revenue momentum built, coupled with the adaptive platform of digital lifestyle offers to cater to the subscribers’ changing lifestyle, could further push revenues to increase by high single-digit from 2014 level," Globe said.
Globe said its operating expenses and subsidy jumped 11 percent to P59.75 billion due to higher spending across all accounts, except for interconnect and re-contracting costs. The higher subsidy and marketing spending was also attributed to the launch of Apple's iPhone 6/6 Plus, as well as Samsung's Note 4.
Globe has set aside $850 million for its capital expenditures in 2015, including $200 million of its unused budget last year.
"With the growing demand for data and internet connectivity, the company anticipates that approximately 75 percent of said capex would be related to data, including spend for deployments of LTE mobile and LTE @Home, capacity and coverage augmentation of the 3G,
HSPA+ and DSL network, as well as requirements for domestic transmission and international cable capacities," the telco said.
The balance is expected to be spent for business support systems in line with product innovations, and other corporate capex.