Globe posts 7% growth in H1-A A +A
Friday, August 15, 2014
GLOBE Telecom posted a seven percent growth in their service revenues for the first half of 2014.
This after the telco embarked on a massive modernization plan to improve its infrastructure and network.
Yoly C. Crisanto, Globe Telecom senior vice president for corporate communications, during a press conference at Ronaldo's, said Globe's service revenues hit an all-time high of P47.7 billion for the semester of 2014, increased by 7 percent from the P44.5 billion in the same period last year.
"We are gaining ground and nakikita niyo naman po na all of the businesses -- postpaid, pre-paid, and even mobile -- are going up in terms of service revenue. So very strong ang ating foundation in terms of the business," she said.
The company's core net profit also increased by 18 percent to P7.6 billion from P6.4 billion last year while net profit increased by 385 percent to P6.8 billion, more than three-fold increase from P1.4 billion.
Crisanto attributed the growth to the network upgrade, which the telco has completed.
"Also, the fact that we were able to give the free Facebook, we were able to induce a lot of mobile internet usage. Nakita rin natin ang tremendous growth ng mobile internet use among our customers," she said, adding that those who were able to try the free Facebook did not change their sim anymore.
Crisanto said this also translated to an increase in mobile subscribers. At the end of the first half, Globe's subscribers increased by 18 percent to 42.7 million from 36.1 million in 2013.
She noted that this is a significant increase from 27 or 28 million subscribers they had five years ago.
Crisanto said they were able to increase their subscriber base "by being very close to their customers by giving their customers what they want, by taking care of them in terms of good service, having the most innovative offers, and their first to market offers."
"As you can see the business, from the time since we started [the modernization] in 2010, it has been growing ever since. So the momentum that we are talking about is not simply just momentum now but momentum po siya nong 2010. Over the last four or five years talagang growth trajectory na siya and we just continue to keep growing," Crisanto said.
Adam Lee, Globe Telecom regional sales head, said that the growth in Davao Region also posted a double digit growth but did not disclose further details.
In a statement on Globe's website, Globe President & CEO Ernest L. Cu said, "Our transformation initiatives are starting to bear fruit, given the solid revenue momentum we sustained this quarter. We approach the second semester of 2014 with confidence that, with our modernized network and our commitment to innovation and customer service excellence, we can maintain the growth momentum for the balance of the year."
Published in the Sun.Star Davao newspaper on August 16, 2014.