Globe Telecom earmarks 2010 CAPEX of USD500m

1 Mar 2010

Filipino telecoms group Globe Telecom is setting aside USD500 million for capital expenditure projects in 2010, with a large portion allocated for its burgeoning broadband business. The Ayala-controlled telco said USD230 million will be invested in expanding and augmenting its high speed internet access networks and services, including the expansion of coverage of DSL, WiMAX and 3G mobile broadband services. A further USD170 million is being ring-fenced for its mobile telephony business and USD50 million for Globe’s fixed line data networks which cater in the main for corporate users. As at 31 December 2009 Globe’s expansion work had boosted the number of base transceiver stations by 22% year-on-year to 10,333, while cell-site deployments were up 7% to 6,226 to support its 2G, 3G and WiMAX services. At the same date its networks reached 99% of the population and 97% of the territory.

Globe booked FY2009 net income of PHP12.6 billion, up 11% year-on-year. Excluding forex and mark-to-market gains and losses and non-recurring items, the company’s core net income was PHP12 billion – up 2% on an annualised basis. However, mobile revenues dipped by 4% y-o-y due to intense competition and increased preference of subscribers for value offers on the back of weak consumer economy. Mobile revenues contributed 85% of total service revenues last year, down from 88% in 2008. Fixed line and broadband operations increased their share of consolidated revenues to 15%, from 12% previously.

Philippines, Globe Telecom (incl. Innove)