Globe Telecom Inc. reported a 3-percent year-on-year increase in net income for the first quarter of the year to P7 billion from P6.8 billion, driven by higher equity earnings from Mynt, the operator of GCash.
In a statement over the weekend Globe said its net income was mainly fueled by higher equity earnings from affiliates, particularly Mynt, and a P2.6 billion gross gain on Mynt’s disposal, which diluted Globe’s ownership in its affiliate.
These gains helped offset the impact of higher depreciation costs, increased interest expenses, and other non-operating charges.
Excluding one-time gains, Globe’s net income would have stood at P4.6 billion, or a 21 percent decline year-on-year due to higher financing costs.
“Growth in net income, healthy margins, and rising contributions from Mynt are a testament to our disciplined and effective execution,” Carl Raymond Cruz, Globe president and CEO, said in a statement on Sunday.
Globe’s consolidated gross service revenues declined by 3 percent to P39.9 billion from P41.1 billion amid a challenging market environment.
Combined mobile and corporate data revenues reached 83.2 percent of total consolidated gross service revenues, a slight improvement from 82.8 percent in the same period last year.
Globe’s mobile business posted a 2.7 percent decline in revenues to P28.3 billion from P29.1 billion.
As of end-March this year, Globe’s mobile customer base expanded by 5 percent to 61.6 million subscribers from 58.8 million a year earlier.
Globe reported capital expenditures of P8.5 billion in the first quarter, down 38 percent from P13.7 billion in the same comparable period.
