Globe Telecom sustained momentum for the first quarter of the year, after posting growth in service revenues and subscriber base on the back of innovative product offers that focused on relevance, personalization and customization.
Consolidated service revenues reached a new all-time high of P16.5 billion, an 8% increase from last year’s P15.2 billion, representing the highest quarterly service revenues in the company’s history on a normalized basis.
The growth momentum in mobile business was sustained, resulting in service revenues of P13.1 billion, up 4% than last year’s P12.5 billion which was normalized to exclude the one-time, upward adjustment of P526 million recorded in the further quarter of 2010 representing prepaid load credits that have either expired or have already been used up. The company’s mobile subscriber base surged to 27.3 million, a 14% increase from last year’s 23.9 million and 3% higher than the previous quarter.
The company maintained its leadership in the mobile postpaid segment with double-digit growth numbers in revenues and subscriber base. Globe Postpaid achieved a new record high of over 120,000 gross acquisitions as of first quarter of the year, a 52% increase from last year, bringing total subscriber base to over 1.1 million, up 30% year-on-year and 8% quarter-on-quarter. Postpaid revenues stand at P3.6 billion, 10% higher than last year.
Globe capitalized on the success of its first-in-the market personalized postpaid plans by reinforcing its service offering with the ALL NEW My Super Plan, the most flexible and customizable postpaid plan in the market today that allows customers to select and design their postpaid plans based on their choice of either an All-Unlimited Plan or All-Consumable Plan, pick monthly add-on unlimited services, choice of freebies, and the latest handsets and device bundles for free or at a discount to new postpaid subscriptions. Globe also pioneered another breakthrough offering for its postpaid subscribers, My Super Txt All, the first-ever unlimited text service to all networks, which can also be a monthly add-on service for the ALL NEW My Super Plan.
On its prepaid business, Globe ended the first quarter with a subscriber base of 26.2 million, up 14% compared to last year and 3% against last quarter. Total prepaid revenues were P9.4 billion, up 2% from last year. For its prepaid subscribers, Globe enhanced its first-in-the-market, bucket, all-network text offering Super All Txt 20 by providing 250 all-network text messages from just 200 messages during its launch in August last year. The breakthrough service remains affordable as it stays at the same price of P20 per day. The company’s unlimited, intra-network call and text offer SuperUnli continued to be a main growth driver, enabling subscribers to stay connected with their friends and loved ones all they want at a very affordable deal of P25 a day.
Fixed line and broadband revenues also surpassed last year’s numbers by 26% with P3.4 billion in revenues. The broadband business similarly sustained its growth with a subscriber base of 1.2 million as of end-March 2011, a 40% increase from last year and 10% from the previous quarter. Globe Broadband Tattoo, the company’s nomadic broadband service, continued to drive the strong results, as well as Globe WiMAX, the fixed wireless service brand for at-home use. Wireless broadband subscribers now account for 78% of the total broadband subscriber base, up from 72% a year ago.
“We are proud to have sustained the momentum we started to achieve during the second half of 2010. Our offers have started to gain traction, and it shows with the encouraging results we posted for the first quarter of 2011. This will provide us the inspiration to aggressively compete by introducing more compelling and relevant products and services, strengthening our network infrastructure, platforms and systems, and continuing our thrust on superior customer experience,” said Ernest L. Cu, President and CEO of Globe Telecom.
Globe posted a net income after tax of P3 billion for the first quarter of the year, representing a seven-quarter high for the company, with a 1% increase from last year and 30% higher from the previous quarter.
Shown in photo during the financial results briefing are key executives from Globe led by (from left) Head for Corporate and Legal Services Group Atty. Froilan Castelo, President and CEO Ernest Cu, Senior Advisor for Consumer Business Peter Bithos and Chief Legal Counsel Atty. Rodolfo Salalima.