Globe Telecom ups 2016 CAPEX to USD750m

12 Feb 2016

The Philippines’ second largest telecommunications provider by subscribers, Globe Telecom, has revealed it is upping its 2016 capital expenditure target to USD750 million to further develop its fixed and mobile infrastructure. The carrier, which invested USD704 million in FY2015, will use the majority of the spend on improving its data-based capabilities, including accelerating its 4G LTE rollout and upgrading its fixed line systems to better accommodate enterprise and backhaul services. Globe has already secured bank loans worth around PHP10 billion (USD210.7 million) to help fund this year’s CAPEX outlay, and notes that in 2015 around 60% of its total capital expenditure was set aside for network modernisation projects.

Ayala-led Globe Telecom reported record turnover, EBITA and net income for the year ending 31 December 2015, with consolidated service revenues up 15% year-on-year to PHP113.7 billion. Fourth-quarter sales peaked at a record high of PHP30.3 billion, up 3% quarter-on-quarter, driven by strong subscriber growth – in particular in data-based services across all areas of the business – and the consolidation of Bayan Telecommunications’ (Bayan’s) performance in H2. Even stripping out the contribution from its Bayan unit, Globe said consolidated service revenue climbed 12% y-o-y to PHP110.8 billion, with mobile revenues up 9% on an annualised basis to PHP85.1 billion.

Globe closed out 31 December 2015 with a total of 52.9 million mobile users, up 20% from 44 million at end-2014, fuelled by ‘record-level gross acquisitions’ and lower churn rates for both pre-paid and post-paid users. Mobile data service revenues surged 55% in 2015 to PHP22.1 billion, while the broadband business, which now includes Bayan, also sustained its growth momentum, increasing both in revenues and subscriber base by 38% and 55%, respectively. Further, Globe’s fixed line data business improved 40% y-o-y to PHP7.7 billion in 2015 from PHP5.5 billion posted in FY2014. To date, the company has deployed 28,336 base stations, with over 18,300 of these 4G-enabled.

Philippines, Globe Telecom (incl. Innove)