Globe reports higher H1 earnings

Higher revenues buoyed the earnings of Ayala-led Globe Telecom Inc. in the year's first half. Globe told the Philippine Stock Exchange on Tuesday that its core net income improved 8 percent to P5.574 billion in January to June from P5.185 billion in the same period last year. Consolidated revenues rose 7 percent to P33.006 billion from P30.731 billion. "We are pleased to have delivered solid results in a very tough and intensely competitive environment," said Ernest L. CU. Globe president and chief executive officer. "We are committed to building on this momentum into the second half of the year." Revenues from its mobile services contributed nearly 90 percent of the total revenues for the period with P26.198 billion. Meanwhile, higher marketing and subsidy costs hiked Globe's operating expenses and subsidy by 9 percent to P13.8 billion. “Total capital expenditures at the end of the first semester amounted to P8.6 billion, driven by the continued investments in the company’s broadband and mobile networks, and were lower than last year’s spending of about P10.8 billion. The company is allotting a significant portion of this year’s $500Mn projected capex spend towards the expansion and upgrading of the company’s mobile networks," Globe said. -- CMA/OMG, GMA News