Globe Telecom disrupts the mobile industry landscape on Tuesday, April 7, when the executives flashed the No. 1 sign during the Globe Annual Stockholders Meeting at Fairmont Hotel in Makati City.
Globe bravely and boldly announced that they are the No. 1 mobile carrier in the country. The announcement came with a strong impression that another giant competitor, Smart Communications Inc., had to refute Globe’s claim, issuing their official statement, a few hours later. In their official statement, Smart announced that they are the ‘undisputed No. 1 leader’ in telecommunications industry. See separate article on this topic.
However, Globe Telecom’s annual growth and billion peso report were remarkably verified with slides to full attendees inside the Makati hotel.
“Against mounting odds, we maintained a defiant and fighting stance against a long-time industry giant to achieve a phenomenal financial feat. From being a challenger brand, Globe has successfully waged a revolution in all fronts; from digital, technological, and business; all the way to our corporate culture as well as making our financial growth sustainable in the long run,” said Globe President & CEO Ernest Cu.
The Globe Annual Stockholders Meeting disclosed a 9% year-on-growth in 2014 besting the previous mark of Php 90.5 billion in 2013 consolidated revenues. Globe also generated core net profit growth of 25% to a record level of Php 14.5 billion in 2014 in prepaid business.
Globe dominated the leadership claim in 2014 bolstered by Php 29.9 billion in revenues, as well as a 58% market share in a two-player environment, versus that of its two rivals, Smart and Sun Cellular, which tallied Php 21.7 billion for a combined 42% revenue market share in postpaid.
Mobile revenues, which contributed 79% of consolidated revenues, grew 7% year-on-year from the prior year’s Php 72.8 billion to Php 78.1 billion in 2014. Mobile voice revenues, which accounted for 44% of total mobile service revenues, posted a year-on-year increase of 7% Mobile SMS, which accounted for 37% of total mobile service revenues, closed the year at Php 29.1 billion, 1% above from Php 28.8 billion of end 2013, driven by popularity of bucket and unlimited promotions.
Globe closed the year with a total mobile subscriber base of 44.0 million, up 14% from 38.5 million subscribers last year. Fourth quarter’s gross subscriber acquisitions registered a quarterly-high of 10.1 million subscribers, 14% higher than last quarter.
This telco giants competition is a clear indication of the growing clamor from subscribers of wanting a better prepaid, postpaid, and broadband services. The competition has upsides and downsides for both Globe and Smart (and yes for Sun, Talk n’ Text, and TM, too). We hope that their rivalry only stir positive effects for each network’s subscribers and not the other way around.
One great example of a wonderful result brought by this so-called telco wars is the offering of Free Facebook promo to their millions of subscribers. The impact was so huge that it disrupted mobile data deals of both Globe and Smart.
This is a never-ending telco war in the Philippines, awakening a great force where subscribers emerge as the real champions.
Feel free to comment below if you believe that Globe is the No. 1 mobile network in the Philippines.
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