Home broadband business drives Globe’s Q2 profit growth

Globe Telecom, Inc. reported its second-quarter attributable net income increased by 16% to P5.68 billion from P4.9 billion in the same period last year, as its home broadband business continued to grow.

This brought the telecommunications giant’s net income to P12.98 billion in the first half, 13% higher than the P11.48 billion posted a year ago.

“We are pleased to report strong financial and operating results for the first half of 2021 with healthy balance sheet and cash flows despite the re-imposition of stricter lockdowns during the second quarter,” Globe President and Chief Executive Officer Ernest L. Cu said, noting progress in the company’s 5G and fiber rollouts.

“Going forward, we will stay focused on innovation in the areas of fintech, healthcare, education, and e-commerce, among others, to help Filipinos thrive in this pandemic and best position ourselves for the remainder of 2021 and beyond.”

Total revenues posted by the Ayala-led telco jumped 9.9% to P41.36 billion in the second quarter, bringing the first-half total 7% higher to P84.2 billion.

Service revenues, which include mobile, home broadband, corporate data, and fixed line voice, rose by 5.9 % to P37.65 billion in the April to June period. For the first half, consolidated service revenues reached P75.45 billion, up 4% from a year ago.

“The main growth driver continues to be data, mostly from @Home Broadband owing to the increase of digital activities among Filipinos. Total data revenues accounted for 79% of total service revenues from 76% last year,” Globe said.

Revenues from the home broadband business reached P7.18 billion in the second quarter, driving the first-half total to a record-high P14.5 billion.

Subscribers of Globe’s home broadband service rose 47% to 4.2 million as of end-June.

Second quarter mobile revenues stood at P26.25 billion, pushing first-half revenues to P52 billion — 1% higher year-on-year.

Meanwhile, non-service revenues surged 78% to P3.71 billion in the second quarter, bringing the first-half total 36% higher to P8.74 billion.

Globe’s capital expenditures reached P43.3 billion in the first half, with the 88% spent on data network builds.

Globe shares rose 2.53% or P49 to close at P1,985 each on Friday. — JPI

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