Globe Telecom, Inc., the Philippines' second largest telecommunications company by sales, Tuesday said net profit in the first quarter rose 1% to PHP2.99 billion ($69.6 million) from PHP2.95 billion on higher sales.
Service revenue reached a record PHP16.5 billion, an 8% improvement from the PHP15.2 billion posted a year earlier, the company said in a statement.
Core net income improved 6% to PHP2.96 billion compared with PHP2.979 billion a year earlier.
The company's mobile revenue improved 4% "despite intense competition and the dilutive effect of lower yield unlimited and bucket promo offerings." So-called bucket promotions are postpaid plans that include a cell phone.
Globe Telecom's mobile business was supported by strong take-up of new and cheaper postpaid plans as well as increased revenue from sales of prepaid services.
The company's fixed line and broadband business also registered a 26% revenue growth linked to a 40% expansion of its broadband subscriber base and sustained strong demand for data services from the corporate sector.
Compared to the last quarter of 2010, service revenue improved 1%, while revenue from fixed line data and broadband segments rose 7% and 9%, respectively.
Globe added that its capital expenditure during the first quarter amounted to PHP5.5 billion as it continued to upgrade and expand its broadband and mobile networks. The company had a capital expenditure of PHP5.6 billion in the first quarter of last year.
