Globe Telecom Inc., yesterday reported a consolidated net income of P 3.4 billion for the first quarter, up by 32 percent. from last year’s P 2.6 billion.

Higher income resulted from lower financing cost offset partly by higher income tax provisions.

Consolidated revenues reached P 15.5 billion, at par with last year’s level.

"We are encouraged by the strength and resilience of our performance despite the challenging market and competitive environment," Gerardo C. Ablaza, Jr., President and CEO of Globe Telecom, Inc. said.

Globe’s wireless business registered a percentage point decline in service revenues while wireline revenues increased 6 percent year-on-year driven by the continued growth in the company’s broadband and corporate data businesses.

Globe maintained strong subscriber momentum, its SIM base expanding 26 percent year-on-year to close the quarter at 21.3 million. Gross additions grew 30 percent from last year while net additions closed at just under the 1 million mark, sustaining the million or more net additions that the company has achieved over the past five quarters.

"We will remain focused on value pricing, innovative service creation, cost efficiency improvements, and expansion into new growth areas." said Ablaza.

Broadband and corporate data continue to be the main drivers of growth for the business, posting revenue growth of 73 percent and 15 percent, respectively, and softening the impact of the decline in wireless revenues.

With its customer base up 86 percent from a year ago to just over 128,000 subscribers at the close of the quarter, the broadband business contributed over P 300 million in revenues.

This strong growth is made possible by the Company’s sustained network expansion, complemented by more affordable broadband packages.

"We remain confident about the prospects of broadband and will continue to invest in technologies that will get us closer to our vision of making Internet widely available to all Filipinos."

Ablaza added. Globe has earmarked about $400 to 450 million in capital expenditures this year to enhance its mobile network quality and coverage, grow its broadband footprint, and improve the resiliency of its Internet network. The Company has spent a total of P 4.3 billion in capital expenditures for the first quarter of the year, up from P 3.1 billion last year.