Globe tumbles most in nearly two years after profit slump
Ayala-led Globe Telecom saw its shares plunge more than five percent Monday as it reported a drop in profit for the first nine months of the year on higher depreciation costs and non-operating charges.
The company booked a net income of P11.7 billion, down 17 percent year on year given higher investments it made to improve customer experience on data.
Shares of Globe opened at their peak of P1,690 and plunged to as low of P1,628 apiece.
The non-operating charges worth P641 million were due to the acquisition of San Miguel Corp.?s telecommunication assets, and higher interest expanses related to additional debt incurred.
Total revenues were up seven percent to P89.1 billion, driven by gains across data-related product segments.
Mobile revenues were flat at P68.3 billion owing to a slight decline in prepaid revenues.
Despite the intense competition, Globe president and CEO Ernest L. Cu said the firm?s ?overall financial results remained strong and still on track with our guidance for the year, marked by record-level subscriber acquisitions, churn improvements and increased data adoption.?