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Globe's H1 profits tumble 72% on upgrade costs
2013-08-07 04:08:00| Telecompaper Headlines
(Telecompaper) Philippines communications provider Globe Telecom saw its first half profit tumble 72 percent to PHP 1.41 billion from PHP 4.96 billion in H1 2012 as the year-on-year improvement in EBITDA was not enough to cover the increase in accelerated depreciation charges related to network transformation projects. Core net income, which excludes non-recurring charges and foreign exchange and mark-to-market gains and losses, was up 13 percent year-on-year to PHP 6.4 billion. Service revenues went up 9 percent to PHP 44.5 billion from PHP 40.8 billion. Mobile revenues were PHP 35.8 billion, up 8 percent year-on-year, while broadband revenues grew 25 percent to PHP 4.11 billion. Fixed-line data revenues totalled PHP 2.02 billion, up 12 percent, but fixed-line voice revenues were PHP 1.36 billion, down 6 percent from the year-ago quarter. Globe ended the quarter with 36.1 million mobile subscribers, up 14 percent year-on-year, while the number of broadband subscribers reached 1.8 million, up 15 percent. EBITDA went up to PHP 18.9 billion from PHP 17.7 billion as the revenue gains fully covered the increase in subsidy and operating expenses. However, EBITDA margin was flat at 43 percent. Capex was 66 percent higher at PHP 19.4 billion, as Globe continues its network and IT modernisation programmes.
Tags: costs
upgrade
profits
globes
Category:Telecommunications