Globe Telecom increases Capex for 2018, Huawei to benefit

Globe Telecom announced its decision to spend an additional capital expenditure (Capex) of $100 million in 2018.

Huawei, the largest telecom equipment maker based in China, will mainly benefit from the development. Huawei is one of the main suppliers of telecom equipment to Globe Telecom.
Globe Telecom 700MHz cell site
The additional network spending will bring the 2018 Capex to around $950 million against $850 million planned earlier.

Globe Telecom has spent around P22.9 billion in capital expenditures till June 2018 to build mobile data network spending 77 percent for the data service needs of its customers. Globe Telecom has 39,614 base stations including over 26,200 for 4G.

The company is currently deploying LTE services using the 700 megahertz (MHz) and 2600 MHz frequencies.

Globe Telecom said its service revenues reached P67.3 billion in the first half of 2018 and P33.2 billion (+3 percent) in the second quarter.

Mobile revenues reached P51.3 billion for the first six months of the year. Globe Telecom’s mobile subscriber base rose 9 percent to 65.1 million as of end-June 2018. Mobile data now accounts for 48 percent from 42 percent a year ago.  Mobile data service revenues generated P24.7 billion in the first half of the year.

Video viewing is driving the high mobile data consumption as Globe Telecom achieved 39 percent increase from 280 petabytes last year to 390 petabytes this period. Mobile SMS and mobile voice revenues posted P11.2 billion and P15.3 billion, respectively.

“These results validate our strategy in driving the digital lifestyle of our customers, and reaffirm our status as the country’s leader in mobile. Our efforts to modernize our network play a critical role in our company’s performance,” Ernest L Cu, president and CEO of Globe Telecom, said.

Globe Telecom’s home broadband business revenue rose to P8.6 billion in its first half. The subscriber base in fixed wireless space surged 40 percent. Total home broadband subscriber base stands at over 1.5 million or 22 percent higher from a year ago. Globe Telecom aims to roll out ultra-fast internet service to 2 million homes by 2020.

Globe Telecom’s corporate data business posted P5.3 billion in revenues, mostly driven by higher customer base, circuit count increase, and higher usage. Fixed line voice revenues were P1.5 billion.

Globe Telecom’s EBITDA reached P33.0 billion with EBITDA margin of 49 percent.