Telecom Lead Asia: Globe Telecom’s Capex (capital expenditure) increased 16 percent to P16.0 billion in first nine months of 2012 from P13.9 billion.
This year’s Capex included investments in network modernization and IT transformation coupled with the usual spend to expand coverage and capacity of the company’s broadband and mobile networks.
As of end-September 2012, Globe Telecom has 12,820 base stations and 7,352 cell sites to support its 2G, 3G, 4G and WiMAX services.
Meanwhile, Globe Telecom reported 19 percent drop in net income in the first nine months of the year to P6.808 billion against P7.994 billion.
Consolidated revenues rose by 6 percent to P61.3 billion from P57.7 billion, reflecting strong performance of mobile, broadband, and fixed line data services.
Globe’s mobile subscribers rose 10 percent to 32.1 million.
Social networking boosted demand for Internet connectivity, driving growth in the telco’s broadband business that was supported by advanced technology for better Internet connection speeds.
Globe said broadband subscribers surged 20 percent to over 1.6 million from 1.4 million as of end-September.
Broadband and fixed line data revenues were up by 14 percent and 9 percent year-on-year, respectively, stemming from an increased demand for internet connectivity.
“Despite the very challenging competitive environment, our business remains fundamentally strong,” said Globe president and CEO Ernest Cu.
The company is gearing for stiff competition. “We are prepared for the challenge and will be in a much better position to deliver overall enhanced value to our stakeholders upon completion of our network upgrade and with the new capacities coming onstream,” Cu said.