Globe’s net income down 22% 

globes net income down 22 - Globe’s net income down 22% 

GLOBE TELECOM, Inc. on Wednesday reported a 22% drop in its attributable net income for the third quarter to P4.39 billion.

In a disclosure to the stock exchange, Globe said its service revenues declined 3% to P36.68 billion, driven by the sustained drop in traditional voice and mobile SMS, but partly mitigated by the increase in the mobile data segment.

The company also saw its costs and expenses increase 2% to P33.97 billion. Costs and expenses include general, selling and administrative expenses, depreciation and amortization, cost of inventories sold, interconnect costs, finance costs, impairment and other losses.

But compared with the second quarter, Globe said its service revenues, which include mobile, home broadband, corporate data, fixed line voice, and other services, improved 3% to P36.68 billion in the third quarter. Non-service revenues also surged 97% to P4.10 billion quarter-on-quarter.

“The improvement in the third quarter was due to the upturn in prepaid top-ups and subscriber acquisitions, as Metro Manila and majority of the country was placed under General Community Quarantine, which was less restrictive and allowed more businesses to reopen and public transportation to be made available, enabling more public mobility,” Globe said.

Quarter-on-quarter, Globe said its costs and expenses, which include cost of sales and operating expenses, increased 16% to P22.91 billion.

Ernest L. Cu, president and chief executive officer of Globe, said at an online briefing on Wednesday that the company is sticking with its capital expenditure guidance of P50 billion for 2020.

“In 2021, we will build fiber-to-the-homes more aggressively to address demand,” he added.

Mr. Cu also expects competition to “intensify” next year.

He added that Globe is hoping that its fourth-quarter performance will be better than the third quarter as the economy gradually reopens.

“We are pleased with the performance Globe delivered this period, especially considering the extraordinary circumstances our country is facing. Driving this result was the resiliency of our network, and the unwavering dedication of our employees, which allowed us to sustain the growth of our data-related products and continue to serve our customers during this period of transition and adjustment to the new normal,” Mr. Cu said.

Shares in Globe on Wednesday closed 0.89% lower at P2,002 apiece. — Arjay L. Balinbin

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