Globe Telecom has decided to cut its Capex (capital expenditure) to P50.3 billion in 2020 as against the original guidance of P63 billion due to delays in the rollout.

The main focus of Globe Telecom will be the expansion of the LTE network coverage in the Philippines.

Globe Telecom has invested P20.9 billion in its network in the first half of the year, 10 percent higher than last year and representing 29 percent of gross service revenues and 54 percent of EBITDA. Globe Telecom said bulk of the Capex spending went to data-related requirements, comprising 76 percent of the total Capex spending.

Globe Telecom’s engineers have already pushed for the expansion of its 5G coverage in key areas in the metro, specifically in the Makati and Bonifacio Global City Central Business Districts (CBDs) despite limitations brought about by the community quarantine and physical distancing restrictions.

Globe Telecom is the first telecoms in the Philippines to introduce 5G technology in 2019, and the first company to offer the first 5G capable smartphone in the Philippines early this year.

Revenue

Globe Telecom’s service revenues fell 1 percent to P72.4 billion in the first half of the year.

Data revenues account for 75 percent of total service revenues versus 70 percent last year. EBITDA stood at P38.4 billion with EBITDA margin reaching 53 percent. Net income dipped 5 percent to P11.5 billion.

Mobile business revenues fell 5 percent to P51.8 billion in the first half of the year. Mobile revenues comprised 72 percent of the total service revenues. Globe has a mobile subscriber base of 80.2 million. Mobile data revenues generated P35.8 billion in the first six months of 2020 versus P34 billion.

Home broadband business grew 19 percent to P12.5 billion. Home broadband subscriber base now stands at over 2.9 million, up 58 percent from the first half of 2019, driven mainly by the increase of fixed wireless broadband users.