Globe Telecom Inc. said Monday newly acquired Bayan Telecommunications Inc. is expected to post a profit this year, after emerging from corporate rehabilitation last year.
Globe treasurer Rizza Maniego-Eala said the company expected Bayan to post a net income this year, rebounding from a net loss of P165 million last year.
Bayan posted total service revenues of P3.17 billion in 2015, with P1.39 billion coming from fixed-line data and P1.35 billion from broadband.
Bayan had 156,336 broadband subscribers as of end-2015.
Globe received the resolution from rehabilitation court granting its motion for the termination of rehabilitation proceedings involving Bayan in November.
“The resolution sets a key milestone for Bayan, wherein it successfully exits rehabilitation and provides key opportunities for Globe to continue to unlock prospects for synergies with Bayan,” Globe said.
Globe earlier said it would spend between $200 million and $300 million over the next two years to modernize its fixed-line infrastructure, including that of Bayan.
Globe’s equity interest in Bayan stood at 98.57 percent.
Globe owns 98.57 percent of the outstanding capital of Bayan, after it acquired the remaining stake of the Lopez family in the telecom company for P1.83 billion.
Globe acquired 98.26 percent of Bayan’s loans and 100 percent of Radio Communications of the Philippines Inc.’s liabilities. RCPI, a unit of Bayan, is owned by the Lopez Group.
The acquisition cost of $130 million was lower than the $400-million face value of BayanTel.
Globe posted a net income of P16.5 billion last year, up 23 precent from P13.4 billion in 2014.
Globe’s core net income, which excludes the impact of non-recurring charges, including one-time gains and accelerated depreciation charges, foreign exchange and mark-to-market charges, also grew 4 percent to P15.1 billion from P14.5 billion in 2014.
Excluding Bayan’s results, Globe’s net income and core net income jumped 22 percent and 5 percent, respectively from 2014, the company said.