Stocks resume decline, Globe Telecom third quarter income falls 50 percent
Stocks declined on Monday following Friday’s rally as markets awaited the result of the US presidential election.
The Philippine Stock Exchange composite index lost 30.18 points to end at 7,197.19 points. But the broader market was unchanged with 92 advances matching 92 declines and 45 issues remained unchanged.
Foreign funds sold P3.76 billion worth of shares and bought P3.019 billion.
Globe Telecom said net income fell by 50 percent in the third quarter partly because it bought San Miguel Corp’s telecom assets but stressed it would continue expanding “data network and capacity” to improve service.
Globe, which is under Ayala Corp., said net income reached P2.7 billion in the July to September period from P5.43 billion during the same period last year.
“We remain steadfast with the expansion of our data network and capacities, to maximize the use of the additional 700 and 2600 megahertz (MHz) frequencies, to give our customer the best experience in terms of the speed and reliability of our internet services,” said Ernest Cu, Globe president and chief executive officer in a statement.
Nine-month profits declined 17 percent to P11.7 billion from P14.1 billion during the same period in 2015.
Globe said reasons behind the decline in net profit were higher depreciation and non-operating charges, including acquiring 50 percent stake in Vega Telecom Inc. Globe and PLDT Inc. bought Vega for P70 billion.
Meanwhile, Philex Mining reported a net loss of P395 million in the third quarter despite sales growing by 24 percent to P2.7. Ayala Land said its nine-month profit rose 17 percent to P15.06 billion while consolidated sales went up by 14 percent to P 85.5 billion.
SM Prime said nine-month profit went up by 13 percent to P17.5 billion. Revenues increased 11 percent to P57.8 billion from a year ago of P52.2 billion. DMS