ASEAN KEY DESTINATIONS
Philippine Globe expects low-single digit revenue growth
Philippines’ second-largest phone company Globe Telecom expects a low single-digit growth in revenues this year as rising annual inflation squeezes demand, said Reuters on Wednesday.
Globe, owned by Singapore Telecommunications and local conglomerate Ayala Corp, saw its revenues grow 11 percent last year, helping to boost net profit by 13 percent to 13.28 billion pesos ($303 million), said Reuters.
The company, which has 38 percent of the mobile phone market compared with larger rival PLDT’s 55 percent, said it does not expect to match last year’s revenue performance despite new promotions and products aimed to boost growth.
“Improvements in top-line growth expected in second half. However, full year growth outlook at low single-digit rate,” Globe said in an advanced copy of a presentation to analysts on Wednesday.
PLDT said on Tuesday it was more cautious about meeting its guidance for a 5 percent rise in full-year core earnings due to soaring annual inflation, which hit a near 17-year high of 12.2 percent in July due to jumping food and fuel costs.
Globe said it will continue to focus on boosting broadband. The company said it will offer Apple Inc’s latest iPhone that runs on third-generation mobile technology in the Philippines on August 22.
Globe’s first half service revenues were almost 2 percent down to 31.1 billion pesos, and its first half net income fell 3 percent to 6.21 billion in the January to June period, the company said on Tuesday.
The company said it was sticking to its $450 million capital spending plan for this year.
According to Reuters estimates, Globe’s full-year profit is expected to rise 3 percent to 14 billion pesos this year.
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