Globe Telecom sees 2010 core net profit flat

Posted at 05/05/10 7:29 PM

MANILA, Philippines - Globe Telecom Inc., the country's second largest phone firm, said on Wednesday it expects flat core net income this year as it recovers market share amid intense competition in the industry.

Globe Telecom, with a market value of $2.8 billion and owned by local conglomerate Ayala Corp. and Singapore Telecommunications Ltd., said revenue from its mobile business would likely be flat this year from P53.3 billion ($1.2 billion) in 2009.

Group revenues may be flat to slightly higher from P63.86 billion last year, helped by an expected boost from broadband revenue growth, it said.

"Globe will continue efforts to recover revenue market share," the company said in briefing materials disclosed to the stock exchange.

Its core net income, which excludes foreign exchange, mark-to-market charges and non-recurring items, was P12 billion at the end of 2009, up 2% from a year earlier.

In the first 3 months of the year, Globe's core net income fell nearly 24% from a year ago, the company reported on Tuesday.

Analysts expect Globe's net profit to hit P12.3 billion this year, slightly lower than P12.6 billion in 2009, according to consensus estimates from Thomson Reuters I/B/E/S.

Globe, which competes with top listed firm Philippine Long Distance Telephone Co., saw its total mobile phone subscribers fall 7% to 23.9 million at the end of the first quarter.

The company said the weak macroeconomic environment and typhoons and massive flooding in the capital in the second half of last year also dampened mobile revenues in the first quarter.

Mobile penetration in the Philippines stood at around 82% at the end of 2009 in a country with a total population of 92 million, higher than Indonesia's 75% but below Thailand's 100%. Local telecom companies have said double subscriptions accounted for a substantial part of the penetration rate.