Globe reinvestment ratio among highest worldwide

Globe Telecom Inc. said it has among the highest reinvestment ratios in the world, allocating about 30 percent of its gross service revenues to capital spending every year.

“With data traffic continuing to be robust, we are accelerating our capex guidance by $100 million this year to further develop our network infrastructure. Right now, around 34 percent of our revenue goes back to spending for upgrading our network. This is among the highest reinvestment ratios in the world,” Globe president and CEO Ernest Cu said.

Globe earlier announced that it is investing an additional $100 million this year to bring its full year spending budget to $950 million as part of its ongoing efforts to give better internet connectivity in the country.

“While some market analysts are wary of the ever-increasing capital expenditures and its impact on long-term profitability, the company has shown remarkable success in its strategy execution of spearheading the digital transformation in the Philippines. Coupled with operational expenses in check, the company has earned a slot among the best performing telcos in ASEAN,” Globe said.

In the first half, Globe said its stronger-than-expected revenue growth across all businesses continues to fuel investments for higher network capacity and wider coverage.

Its revenues surged to P51.6 billion in the first semester, one of the strongest performances in the ASEAN year to date, according to the company.

Combined 3G and 4G data traffic volume surged by 140 percent, with 390 Petabytes in the first half from 280 Petabytes in the same period last year.

Globe’s mobile subscriber base totaled 65.1 million as of end-June, up nine percent from the 59.7 million subscribers in the same period last year.

“We intend to continue providing more of what our customers want which include superior content through global partnerships, pervasive internet and superior mobile experience,” Cu said.