Lower expenses, taxes lift Globe’s Q1 earnings | Bilyonaryo Business News
Technology

Lower expenses, taxes lift Globe’s Q1 earnings

Ayala-led Globe Telecoms grew its first quarter profit by 11 percent to P7.3 billion as it benefited from lower non-operating expenses and lower taxes due to retroactive impact of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

Ayala-led Globe Telecoms grew its first quarter profit by 11 percent to P7.3 billion as it benefited from lower non-operating expenses and lower taxes due to retroactive impact of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The CREATE law has effectively reduced corporate income tax rates from 30 percent to 20 percent for corporate taxpayers.

Consolidated service revenues rose three percent to P37.8 billion, driven by the continued record performance of home broadband as more people demanded a dedicated connection for working from home or for entertainment. Data revenues accounted for 79% of total service revenues compared to 75 percent last year.

Home broadband revenues soared 27 percent to an all-time high of P7.4 billion. Total home broadband subscriber base breached 4 million mark, exceeding last year’s tally by 81 percent mainly supported by the sustained fixed wireless broadband users’ expansion.

Revenues from the mobile business comprised 69.6 percent of the total service revenues, with a total mobile subscriber base of 79.8 million.

Mobile data traffic climbed to 836 petabytes from 522 petabytes in 2020, which translates to a healthy year-on-year growth of 60 percent.

Meanwhile, mobile voice and mobile SMS revenues reached ₱4.7billion and ₱2.4billion, down 11 percent and 21 percent, respectively.

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