PHILIPPINES--Globe Telecom disclosed it is expecting slower earnings growth for 2008 due to rising oil and food prices.
The country's second largest mobile phone company said these concerns will heavily affect income generated from its data and voice services.
According to news wire Reuters, Globe's president Gerardo Ablaza said the company faces a difficult task replicating the double-digit growth rate it clocked last year. He described the rising price of rice--the main food staple for most Filipinos--as particularly worrisome, and added that Globe is sees "weakening" sales.
Market analysts estimated the company could end up with a 19 percent rise in overall net profit this year.
According to Globe, its service revenues rose 11 percent last year, while net profit increased 13 percent to 13.28 billion pesos (US$318.7 million).
Ablaza said a looming economic slowdown has not affected Globe's mobile subscriber base, which posted a 6 percent growth in the first quarter of 2008.
The company said it is looking at a capital expenditure of US$400 million to US$450 million this year.
Joel D. Pinaroc is a freelance IT writer based in the Philippines.
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