MANILA: Ayala-led Globe Telecom Inc. on Monday said its net income after tax dropped 50 percent in the third quarter of the year from the same period last year due to depreciation and non-operating charges, including costs incurred in the acquisition of a telecom asset of San Miguel Corp.
Net income after tax fell to P2.7 billion in the July to September period, the company said.
In the first nine months of the year its net income reached P11.7 billion from P14.1 billion, as the gains in EBITDA (earnings before interest, taxes, depreciation and amortization) were offset by the increases in depreciation and non-operating charges, including costs related to its acquisition of SMC’s telecommunications assets, the company said.
Globe noted it was able to sustain the top line growth momentum in January to September, with consolidated service revenues of P89.1 billion, up 7 percent from P83.4 billion a year earlier.
Ernest Cu, Globe president and chief executive officer, said the efforts in providing market-relevant data offers, the best of breed solutions to cater to the evolving needs of its customers, backed by the significant improvements in wireless and wired data networks paved the way for its continued success.
“Notwithstanding the serious turn in the level of competition, we are happy that the company’s overall financial results remained strong and still on-track with our guidance for the year,” Cu said.
“We remain steadfast with the expansion of our data network and capacities, to maximize the use of the additional 700 and 2600 megahertz (MHz) frequencies by investing heavily in LTE to give our customer the best experience in terms of the speed and reliability of our internet services.” he added.
Mobile revenues slightly grew by 1 percent year-on-year, reaching P68.3 billion in the first nine months from P67.5 billion a year earlier, reflecting the continued shift towards digital lifestyles in voice and SMS core services.
