Globe Telecom Inc. has earmarked P89 billion for capital expenditure (capex) this year, with a higher allocation for its rollout of the fiber-to-home network and 5G technology in the country.
Globe’s capex this year is lower than its actual spending of P93 billion in 2021 wherein bulk was spent for its data network, cellsite upgrades and fast-tracked fiber rollout.
“We have emerged to be an outstanding digital services enabler by rapidly adapting our strategies to address both the challenges and the opportunities created by the global health crisis and natural disasters. As a result, our financial performance remained stable and posted healthy growth, enabling us to reinvest back into our network as customer data demands grow larger each year,” Ernest Cu, Globe president and chief executive officer, said in a statement.
“We invested P92.8 billion in capex for 2021 and have earmarked P89 billion for 2022, to give Filipinos better, more meaningful digital experiences,” Cu added.
Last year, Globe reported a consolidated net income of P23.7 billion, up by 27 percent from 2020. This was mainly attributed to the 2 percent increase in earnings before interest, taxes, depreciation and amortization (EBITDA), and the 57 percent decline in non-operating charges which fully offset the 16 percent increase in depreciation expenses.
Globe’s core net income, which excludes the impact of non-recurring charges, one-time gain, foreign exchange gains and mark-to-market charges, rose 9 percent year-on-year to P21.2 billion.
The company’s full-year consolidated service revenues grew 4 percent to a record P151.5 billion from the P146.4 billion reported in 2020, due to the sustained performance of home broadband as well as corporate data.
Mobile business revenues climbed 1 percent year-on-year to P104.4 billion from P103.7 billion, home broadband services grew 10 percent to P29.4 billion and corporate data rose 12 percent to P14.2 billion, while fixed line voice service revenues were lower quarter-on-quarter by 5 percent.
For 2022, Globe said it expects revenues to increase by low single-digit driven by the
relevant product platforms in place and aggressive network investments.
“We are optimistic that our strategy to focus on innovation to serve our customers better and to address their needs and concerns through various digital platforms, backed by our strong network, will solidify our leading position in the market. Rest assured that we will continue to revamp and upscale our services in order to secure the future of a digitally-transformed Philippines,” Cu said.
Globe said EBITDA margin is expected to remain in the low 50s, with the continuous impact of the increasing contribution of lower-margin data-related products, but will be offset with efforts in managing costs.
Globe had 86.6 million mobile subscribers and 3.7 million home broadband subscribers as of end-2021.
