Globe Telecom, the Philippines’ second largest telecoms operator by revenues, reported audited net income of PHP12.6 billion (USD284.7 million) in 2009, up 11% year-on-year, despite the weak economy and fierce competition in the local market. The telco posted consolidated service revenues of PHP62.4 billion, compared to PHP62.9 billion in FY2008, driven by a strong performance from the operator’s broadband and corporate data business operations which helped offset a poor performance from its mobile arm.
As reported earlier this week by CommsUpdate, Globe Telecom intends to raise between USD100 million and USD150 million through a debt issue or bank loan to help pay for its USD500 million CAPEX programme in 2011. Globe CFO Alberto de Larrazabal is quoted as saying the telco will look to secure the monies in the second half of this year. ‘Interest rates may climb so we are taking a look already and will probably lock it in in the second half,’ he said. The SingTel and Ayala Corp-backed operator has not confirmed its full spending budget for next year, but is investing USD500 million in 2010 to develop its business – including around USD250 million on broadband. The investment plan includes costs related to Globe’s involvement in the new Southeast Asia Japan Cable (SJC) System which will link the Philippines to Singapore, Hong Kong, Indonesia and Japan and which will further increase the capacity and boost the resiliency of Globe’s international network. Currently, the SJC system is slated to go live by 2012.