Globe 1Q revenue growth at record level P31.1 Bln; up 4% on-year

Globe Telecom closed the first three months of 2017 with record-level consolidated service revenues of P31.1 billion, 4% higher than same period last year’s P30.0 billion, and P62 million higher than prior quarter’s all-time high revenues. 

The sustained solid revenue growth across all data-related segments, as well as the continued subscriber expansion for both mobile and broadband, led to this period’s strong performance. This was likewise aided by the company’s game-changing initiatives including a digital lifestyle play, innovative offers, and content partnerships with iconic global brands, backed by robust 3G and 4G networks nationwide. 

“We are seeing encouraging improvements this quarter, despite the temporary setback on profits as we continue to lay down the foundation to secure sustainable growth in the future. Our continued aggressive network modernization and upgrades using the latest technologies are all geared towards enhancing our internet services, so that our customers can have a wonderful and seamless connectivity,” Globe President & CEO Ernest Cu said. 

Mobile revenues stood at P23.8 billion as of end-March 2017, up 3% year-on-year, from the P23.1 billion reported a year ago. This was mainly attributed to the continued strong data consumption as more customers adopt the digital lifestyle. TM, the company’s mass-market brand, registered 7% revenue growth from last year, while Globe Prepaid revenues posted 3% improvement from 2016. Globe Postpaid revenues on the other hand, was flat year-on-year. Globe Telecom’s mobile subscriber base reached 58.6 million for the first three months of the year, up 2% from the 57.3 million subscribers reported in the same period of 2016. 

On a product perspective, mobile data remains the biggest contributor to total mobile revenues, now reaching 42% as of the first three months of the year. Mobile data service revenues registered close to P10.0 billion for the three-month period just ended, or 8% higher than the P9.2 billion reported a year ago. Mobile data traffic grew 84% from 71 petabytes (PB) in the first three months of 2016 to 131 petabytes (PB) this period, as smartphone penetration now reached 63%. The continuous ramp up of data traffic and smartphone penetration only proves that Globe remains to be the network of choice of mobile data users. Mobile voice declined by 3% year-on-year while SMS increased by 3%. 

The Globe home broadband business likewise showed consistent growth year-on-year, registering a total of P3.8 billion revenues as of end-March this year, up 9% from the P3.5 billion reported a year ago. Home broadband’s robust revenue performance was boosted by the continued subscriber expansion, which now reached 1.19 million as of the first three months of 2017. This was likewise aided by the strong take-up of home broadband’s latest plans and bundles which caters to the growing demand for lifestyle and entertainment-driven connectivity requirements such as video, gaming, information, commerce, shopping, and banking. 

Globe Telecom’s corporate data business improved by 7% at P2.5 billion as of end March this year, higher from the P2.4 billion posted in the same period of 2016. This was mainly attributed to the rising demand for data connectivity, impacting customer base expansion, circuit count increase and higher usage. Traditional fixed line voice revenues however, posted a decline of 2% from same period last year. The company’s record-level consolidated EBITDA stood at P13.3 billion, up 2% from same period last year. Total operating expenses and subsidy grew by 5% year-on-year to reach P17.8 billion from P17.0 billion last year, as Globe continued to invest in its data networks and support the growing subscriber base. EBITDA margin was at 43%, lower than the 44% margin reported a year ago but still higher compared to the 40% recorded in the fourth quarter of 2016. 

Despite the sustained topline and EBITDA growth, the impact of higher interest expenses and depreciation charges from its network infrastructure investments, as well as the company’s share in equity losses and spectrum amortization related to the SMC telco asset purchase, weighed down Globe Telecom’s net income. Net income for the period declined 13% to only P3.8 billion from the P4.3 billion reported in the same period of 2016, as the charges related to the SMC telco asset purchase were not present in last year’s levels. The company’s core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, likewise declined by 12% year-on-year to reach only P3.7 billion from P4.2 billion in the first quarter of 2016.

Cell phones, chargers seized at NAIA

Mobile phones and chargers brought in by an airline passenger who could not produce the required import permit were seized by agents of the Bureau of Customs (BOC) on May 1 at Ninoy Aquino International Airport Terminal 2 in Pasay City.

Deputy Commissioner Ariel Nepomuceno, head of the BOC’s Enforcement Group, said that Chen Haibi, a Chinese national, flew in from Guangzhou, China on May 1 on a Philippine Airlines flight carrying with him 100 pieces of Nokia 3310 cell phones and chargers worth P400,000.

“The suspect failed to declare his importation and the required documents such as an import permit from the National Telecommunications Commission (NTC) which led to the seizure of the shipment,” Nepomuceno said.

Maj. Jaybee Raul Cometa, head of Customs X-ray Inspection Project recommended the issuance of a Warrant Seizure and Detention (WSD) against the cargo for violation of an NTC Memorandum Circular and the Customs Modernization and Tariff Act, citing its lack of an import permit and Haibi’s failure to declare its contents.

An NTC provision states that no person or entity can purchase, sell, retail and/or resell mobile phones, including parts and accessories, without a valid Mobile Phone Dealer (MPD)/ Mobile Phone Retailer/Reseller (MPRR) Registration Certificate.

BOC chief Nicanor Faeldon reminded local and foreign travellers as well as foreign businessmen to be always mindful of customs laws when bringing in goods into the country. 

At the same time, he warned that Customs regulations continue to be strictly enforced, with violators facing the subsequent penalties.

The mobile phones and chargers are now in the custody of the BOC for proper disposition.

Globe, UC hold PRISM digital literacy training program for teachers in the Visayas

Globe PRISM participants in Cebu

Globe Telecom, in partnership with the University of Cebu (UC), held recently the culminating activity for the Visayas leg of PRISM, a digital literacy training program designed to equip private school teachers with technological skills for effective classroom teaching.

This is in line with Globe Telecom’s sustainability commitment to empower every Filipino with world-class learning through technology in response to United Nations Sustainable Development Goal No. 4 to “ensure inclusive and quality education for all and promote lifelong learning.”

“These days, it is imperative for teachers to learn how to use information and communications technology (ICT) tools in the classroom if they want to motivate students to learn and to help increase their skills for entrepreneurship and employment. The changing times mean that teachers need to continuously adapt to their evolving role. Through this program, we are assisting the teachers in discovering new ways in which they can foster creative and critical thinking among the students,” said Michelle Tapia, Globe Advisor and Head of Education Strategy & Innovation.

The partnership with the University of Cebu has proved to be a natural fit, sharing the same vision in technology’s critical role in the 21st century. Dr. Anna Liza B. Son, Vice Chancellor for Academic Affairs of UC said: “We are happy to host the Visayas leg of PRISM. UC, one of the leading universities in the region, continues to democratize quality education guided by the core values of innovation, camaraderie, alignment, respect and excellence (ICARE). As education becomes increasingly competitive, UC believes that ICT is a catalyst to respond effectively to society’s demands. This challenge has steered the university to implement a number of initiatives related to ICT. Our mission is to equip our teachers with knowledge, skills and desirable attitudes on technology utilization which will benefit the educational system. We firmly believe that if we train and develop our people, this will reflect in the quality of graduates that we produce.”

The pressing need for digital learning skills prompted Globe early this year to reach out to 1,000 educators from all over the country. Of the number, 140 teachers came from the Visayas region. The program was participated by representatives from the University of Cebu, Cebu International School, Holy Name University, Negros Mission Academy, Sacred Heart School- Ateneo de Cebu, Sacred Heart School- Hijas de Jesus, Santa Isabel International School, St. Joseph College, University of Negros Occidental- Recoletos, University of San Carlos, University of St. La Salle, St. Paul University Dumaguete, and Silliman University. 

Through PRISM, the selected teachers underwent a three-week professional development program conducted by Globe. It included a two-day immersive bootcamp, distance project-based learning, and personalized coaching. A key component of the program is the Brightspace Integrated Learning Platform where the teachers underwent distance learning for three weeks with access to the global Brightspace Community and multimedia resources to guide them through the learning process as well as a seamless platform to collaborate with learning coaches and teachers in real time. For the culminating activity, the teachers were invited to showcase various projects on technology-enabled instruction and content development.

PRISM is supported by Globe myBusiness whose mission is to help transform Philippine schools and empower every Filipino with world-class learning through technology. “We want to create a better education system through an ecosystem of enablers. We want to impact the lives of the students in the best way that we can. But first, we have to train the teachers on the effective use of technology to encourage 21st century learning in the classroom,” said Derrick Heng, Senior Advisor, Globe myBusiness Group.

Teachers who attended the PRISM Digital Literacy Program were nominated by both Globe and the Private Education Assistance Committee (PEAC). The PEAC National Secretariat processed the nominations submitted by schools nationwide while a Vetting Committee, composed of two (2) representatives from the Coordinating Council of Private Educational Associations (COCOPEA), a DepEd Regional Director, and the PEAC Executive Director, was set in place to closely vet the nominated teachers.

PRISM was earlier conducted in Metro Manila and Naga City while Pampanga and Cagayan de Oro City will follow within the first half of the year.