Globe committed to spend P63B capex

GLOBE Telecom Inc. is still on track to spend its P63-billion capital expenditure for this year despite the global health crisis.

“We recognize the critical risks that a disruption from an emerging infectious disease can bring to our operations. And from the onset, as part of our Business Continuity Management Plan, we already prepared for workforce health and safety, supply chain disruption and the need to provide seamless connectivity, among other things,” Ernest Cu, Globe president and chief executive officer, said in statement.

However, Cu said the magnitude of the coronavirus disease’s impact on the company’s overall business operations and the whole economy will have to be assessed further.

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Prior to the implementation of the enhanced community quarantine in Luzon, Globe said it expects revenues to grow by mid to high single-digit this year, driven by the continued growth in data usage in both the consumer and enterprise business segments.

Bulk of the budget for the year will be spent on network expansion to further improve internet and data services as data consumption has been increasing given the government’s restriction to travel, it said.

This year’s capex is higher than last year’s P51-billion capital outlay, which represents 34 percent of gross service revenues and 67 percent of full year earnings before interest, taxes, depreciation and amortization (EBITDA).

Last year, Globe also forged more partnerships to anchor infrastructure development at a larger scale, resulting in 139 percent more cell sites and 28 percent more 3G and 4G base stations compared to 2018.

Globe said through innovative customer-centric solutioning, it ended 2019 with over 94 million mobile customers and over 2 million home broadband customers, representing a year-on-year increase of 27 percent and 25 percent, respectively.

“We have made strong strides aligned with our vision of redefining customer experience, enabling last mile connectivity and revitalizing the country’s digital economy. Our performance in 2019 is a testament of our integrated approach to value creation by focusing on customer experience, driving sustainability and adopting a holistic approach to risk management,” Cu said.

Together with its digitalization efforts, Globe embarked on various sustainability programs as it aims to be a market disruptor in terms of innovative technology and sustainability initiatives.

Globe closed 2019 with consolidated service revenues of P149 billion, up 12 percent from a year ago fueled by the gains from data across mobile, broadband and corporate data services.

Total data revenues now account for 71 percent of total service revenues versus the 61 percent reported the prior year, as more Filipinos adopt the digital lifestyle.

Consolidated EBITDA rose 17 percent to P76 billion in 2019, from P65 billion in 2018.

Globe reported a consolidated net income of P22.3 billion last year, up 20 percent from a year ago. Core net income also grew 20 percent to P22.5 billion, from P18.7 billion in 2018.

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