In a press conference this morning, Globe presented its Financial reports for 2012. Globe reported they closed the year on a high note with consolidated service revenues soaring to an all-time high of P82.7 billion, 6% above previous year’s level of P77.8 billion. Revenue expansion was supported by an overall increase in subscriber base as well as improvements across key product segments.
Some highlights from the report:
- Full year 2012 consolidated service revenues soared to a historic-high of P82.7 billion, up 6% from 2011 results of P77.8 billion.
- Consolidated service revenues were at a quarterly high of P21.4 billion, 4% above previous quarter’s P20.6 billion
- Operating expenses and subsidy increased by 12% year-on-year from P42.7 billion to P47.7 billion driven largely by marketing and subsidy costs which increased substantially following the aggressive acquisition of new postpaid subscribers who opted to get the higher-end gadgets such as the Apple iPhone
- Total operating expenses and subsidy increased to about P13.6 billion from P11.1 billion in the third quarter due largely to handset subsidy and marketing costs for subscribers who availed of the recently-launched Apple iPhone 5, as well as the latest smartphones from Samsung and BlackBerry
- Consolidated EBITDA of P35.0 billion was lower by about P93 million from previous year’s total of P35.1 billion as the overall growth in expenses outpaced the increase in revenues. As a result, EBITDA margin declined from 45% in 2011 to 42% in 2012
- Total depreciation expense grew 25% year-on-year from P18.9 billion to P23.6 billion with the increase attributed mainly to charges related to the network modernization and IT transformation programs.
- Consolidated net income after tax was down 30% year-on-year from P9.8 billion to P6.9 billion as revenue gains were offset by the impact of accelerated depreciation charges related to the Company’s network modernization and IT transformation programs as well as sustained investments in subscriber postpaid acquisitions.
- Full year 2012 capital expenditures amounted to P26.8 billion, 54% higher than previous year’s spending of P17.4 billion
Mobile data revenues, which comprised 49% of total mobile service revenues, increased by 6% from about P31.1 billion in 2011 to P32.8 billion in 2012
Mobile voice revenues, which accounted for 51% of total mobile service revenues, increased by 6% from P32.5 billion in 2011 to P34.4 billion in 2012
Globe Postpaid, which remains the stronghold of the Company, continued to post robust acquisitions with fourth quarter level maintained at over 147,000 additional SIMs. Sales of the latest devices from Apple, Samsung, and BlackBerry also helped fuel acquisitions in the segment which brought full year 2012 gross additions to a record 589,642, slightly up by 1% from 585,724 in 2011.
Globe Prepaid gross additions posted a quarterly-high of 3,127,189 in the fourth quarter, 14% above third quarter’s level of 2,736,570. Boosted by value-for-money offerings that included the all-unlimited service GoUnli as well as All Unli Trio, All Net Combo, Immortal Offers and Unli Tingi, and competitively-priced international services such as GoTipIDD, full year gross acquisitions improved by 3% from about 11.4 million in 2011 to nearly 11.8 million in 2012.
Globe’s fixed line and broadband business contributed to the Company’s overall top line improvement with revenues increasing 9% in 2012 to P15.6 billion.
Globe Tattoo expanded its subscriber base by 18% from 1.4 million in 2011 to 1.7 million in 2012. Mobile broadband solutions continued to enjoy popularity amongst customers with 77% of net additions for the year opting for Tattoo On-The-Go products.
In the press briefing Globe execs reported the status of the USD700M Globe modernization project. They mentioned that their network and IT modernization programs, has already completed 84% of the first phase of the network modernization. Globe has likewise added approximately 12,000 kilometers of fiber optic lines nationwide to further boost current capacity. At this rate, Globe’s network modernization program remains on track to be completed by the end of this year