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The insatiable demand for mobile Internet has helped the industry giant, Globe Telecom, to achieve a significant increase in its profits during the nine-month period ending last September, even as the expenses in capital increased.
Globe said in a stock market statement that its base profit from January to September reached 15.3 billion pesos, a gain of nearly 37% from its level of the previous year. Net income, including non-recurring expenses, foreign exchange and market expenses, reached 15.2 billion pesos compared to 13 billion last year.
The rise in Internet-related services is a key factor in its revenues. Globe said mobile data revenue jumped 23.6 percent to 38.7 billion pesos. This was faster than the 20% growth recorded in the same period in 2017.
Globe also announced a 10% increase in its number of subscribers to 65.4 million by the end of September this year. Mobile data traffic jumped 49% to 641 petabytes.
Mobile data now accounts for 50% of the service's gross revenue, up from 43% in 2017.
Globe cited investments in its 4G network, content partnerships, and growing demand for Internet TV, music, and eSports.
Globe said that mobile revenue, which includes voice calls and text messaging, reached 77.7 billion pesos, up about 6%. Total service revenue for this period was £ 101.9 billion, up 7%.
At the same time, Globe's domestic broadband segment increased subscribers by 23% to 1.5 million. Nearly half of them were fixed wireless accounts. Home broadband revenues reached 13.5 billion pesos, up 15.4 percent, while business data services generated revenue of 8.4 billion, up 10.5 percent .
Globe also highlighted its investment expenditure of 32.5 billion pesetas to strengthen its fixed and mobile networks. This figure, about 65% of its annual budget, accounted for one-third of revenue. Expenses include expanding its LTE network and upgrading 5G pilot services in 2019.
Globe is also preparing for increased spending in the coming years, thanks in part to the government's initiative to invite a new mobile phone player to boost competitive pressure. Its board announced a reduction of its dividend policy from 60% to 70% of the previous year's main profit. This will be applied to his 2019 dividend declaration. The previous policy was to pay between 75% and 90% of the previous year's basic income. –MIGUEL R. CAMUS
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