Globe Telecom 2014 Capex will be $650 million

Globe Telecom today said its capital expenditure (Capex) for 2014 would be around $650 million.

This indicates that Globe Telecom will not be increasing its Capex as compared with last year. This is despite its 4G roll outs.

In anticipation of consumer demand for bandwidth-intensive data applications, the company will be devoting a sizeable portion of its capital expenditure for the year to enhance and expand its already modernized data network.

“Data remains as the key investment area for Globe given the growth in data that we have seen and are anticipating. This is consistent with our plans to maintain surplus data capacity in advance of significantly growing demand,” said Globe Telecom President & CEO Ernest Cu.

Ernest Cu, President & CEO, Globe

Such investment involves additional roll-out of LTE sites as well as further improvements in its fixed broadband network.  In 2013, broadband and fixed-line data segments rose 20 percent and 13 percent year on year, respectively, thanks to rising demand for data and internet connectivity.

He expects the company’s revenue growth in 2014 to be in high single-digit from 2013 level on expectations that the company’s mobile, broadband and fixed-line data businesses will continue to provide revenue growth support.

In 2013, Globe Telecom’s revenues rose 9 percent to P90.5 billion from P82.7 billion in the year prior. Strong demand for data connectivity across its mobile, broadband and fixed line data businesses has contributed to the revenue growth.

Also, benefits of the company’s modernized and data-ready network following network transformation initiatives in the past two years are also expected to enhance its competitiveness and generate more business for the telecommunications provider, said Globe Telecom in a statement.

The company’s network modernization has assisted Globe Telecom to post 16 percent increase mobile subscriber base growth to 38.5 million.

Globe Telecom is betting bid of postpaid subscribers. Over 51 percent of the company’s postpaid acquisitions are mid to high ARPU subscribers.