Globe Telecom Growth Momentum Continues With Record-Breaking 2Q, 1H Performance

MANILA, Philippines, Aug. 19, 2015 /PRNewswire/ --

• CONSOLIDATED SERVICE REVENUES AT PHP53.8 BILLION, UP 13% YoY; EBITDA LEVEL AT PHP22.7 BILLION; UP 19% YoY;
• CORE NET INCOME AT PHP8.6 BILLION, UP 14% YoY;
• MOBILE SUBSCRIBERS AT 48.4 MILLLION, UP 13% YoY;
• BROADBAND SUBSCRIBERS NOW CLOSE TO 3.5 MILLION, UP 55% YoY

Globe Telecom, Inc. closed the first half of 2015 with record-level consolidated service revenues of PHP53.8 billion, 13% higher than the PHP47.7 billion reported a year ago, on the strength of robust revenue gains on mobile data and broadband, as more customers adopt a digital lifestyle.

Photo - http://photos.prnewswire.com/prnh/20150819/259542

The sustained growth trend was spurred by the strong subscriber growth for both mobile and broadband, the increasing use of smartphones and other data-enabled devices, and the introduction of new products and services geared towards providing Globe subscribers easy, affordable, and hassle-free internet access and quality entertainment content. On a sequential basis, Globe posted its highest ever consolidated service revenues of PHP27.6 billion for the second quarter of the year, outpacing both the record-level revenues in the seasonally strong fourth quarter of 2014 of PHP26.3 billion and last quarter's PHP26.2 billion by 5%.

The mobile business posted a 10% year-on-year growth in revenues reaching PHP41.6 billion as of the first half of the year from the PHP37.8 billion reported in the same period of 2014, due to the strong contributions across all brands. Globe Postpaid revenues for the first semester of 2015 were up 8% year-on-year due to the higher customer base given the continued success of the new myLifestyle plans. TM, the company's mass-market brand, likewise improved by 15% year-on-year while Globe Prepaid grew by 8%. At the end of June 2015, Globe's mobile subscriber base reached 48.4 million, up a solid 13% from the 42.7 million a year ago driven by record gross acquisitions this period.

The healthy growth in mobile revenues was fueled by the surge in mobile data revenues, which reached PHP9.5 billion as of end June of 2015, up a solid 53% from the PHP6.2 billion reported a year ago. This was complemented by the continued growth in mobile voice revenues of 7%, partially mitigating the decline in SMS revenues (-6%). The surge in mobile data revenues resulted from the combined effects of the successful monetization of data traffic through Globe's GoSurf promos and the continued commitment of the Company to seed the habit of mobile browsing by giving its customers more ways to access social networking sites (free Facebook and Viber), premium content (HOOQ and Spotify) or top mobile games without the data charges, further cementing its reputation as the mobile data SIM of choice for Filipinos' digital lifestyles.

Moreover, Globe's broadband business remained strong year-on-year, with both revenues and customer base increasing by 30% and 55% respectively, given the rising consumer and corporate demands for data connectivity services. Broadband revenues stood at PHP7.6 billion as of end June 2015, with total subscriber base now reaching close to 3.5 million. The solid growth in revenues was driven by subscriber expansion in both the wireless (+64%) and wired (+14%) services. This sustained subscriber increase was boosted by the availability of new and attractive data plans with varying internet speeds and higher monthly data volume allowances that best fit the customers' budgets and lifestyles.

Globe's fixed line data business increased by 20% to PHP3.1 billion for the first half of the year from PHP2.6 billion during the same period last year, due mainly to the expansion in circuit count and increased usage triggered by the strong demand for data connectivity, managed services and cloud solutions. Traditional fixed line voice likewise posted a 7% increase year-on-year at PHP1.5 billion this period due to the continued popularity of the bundled home broadband plans.

For the first six months of the year, Globe registered a new all-time high in consolidated EBITDA of PHP22.7 billion, 19% higher against the PHP19.1 billion reported in the same period last year. The growth of operating expenses and subsidy of 9% year-on-year to PHP31.2 billion from PHP28.6 billion last year, to support the growing subscriber base and its data network expansion for a better customer digital lifestyle experience, was more than offset by the 13% increase in consolidated revenues. EBITDA margin stood at 42%, the same level as the first quarter of the year and up 2% against the 40% in the same period of 2014.

With the strong EBITDA performance, Globe likewise posted an all-time high net income of PHP8.7 billion, 27% higher against the PHP6.8 billion reported in the same period last year, despite the increase in normal course depreciation expenses and higher non-operating charges recognized during the first six months of the year. The Company's core net income likewise reached an all-time high PHP8.6 billion as of the first half of 2015, or 14% higher than the PHP7.6 billion reported in same period of 2014. Globe's core net income excludes the impact of the non-recurring items, foreign exchange and mark-to-market charges.

"Amidst the heightened level of competition, Globe soared to new record levels in terms of service revenues, EBITDA, net income and core net income. Once again, our data revenues exceeded our expectations, maintaining its robust double digit growth during the first half of the year. We remain confident that we can sustain this growth momentum going forward as Globe is now well-positioned and well-equipped more than ever to offer the best products and services to cater to the market's growing demand for quality digital content, given our topnotch global and local partnerships, and backed by our improved and modernized network. We will continue to uphold our leadership in the digital space by creating the best digital lifestyle experience for the Filipinos," Ernest L. Cu, President and CEO of Globe Telecom, Inc., said.

Globe spent around PHP11.4 billion in capital expenditures as of the first half of the year to support the growing subscriber base and its demand for data. To date, Globe has a total of 26,874 base stations, with over 16,900 for 4G1, to support the service requirements of its subscribers.