Globe capex raised to $1 billion

GLOBE TELECOM, Inc., has raised its capital expenditures (capex) to a little over $1 billion for this year after securing approval to spend more for its ongoing expansion program.

The telecommunications company sought the approval of its Board of Directors earlier this week for an additional $300-million capex to be invested for its network expansion.

“The Globe Board of Directors approved new capital expenditure ( capex) of $ 300 million... consisting of $ 160 million for mobile; $50 million for corporate data; and $90 million for broadband,” Globe told the Philippine Stock Exchange yesterday.

“Prior to this approval, the company’s 2016 capex availment and cash flow were the same at $750 million. The additional network spending will bring 2016 capex availment to $ 1 billion while the capex cash flow will range from $ 750-$ 810 million depending on the final network build completion in the fourth quarter,” it added.

The telecommunications firm earlier said bulk of its capex for 2016 is to be invested in datarelated projects, modernization of fixed line data infrastructure, and requirements for transmission facilities.

Globe said it is kick-starting an additional mobile capex for the deployment of more LTE services using the 700 megahertz (MHz) and 2600 MHz frequencies, increased 3G capacities and further expansion of mobile coverage.

Globe said in its regulatory filing on Thursday that it has also started the deployment of fiber broadband technology that will provide “ultra-fast Internet” to two million homes in 200,000 barangays by 2020. It is also investing for capacity augmentation of its corporate data network to address the bandwidth requirements of enterprise clients for the use of various data solutions to improve business efficiency, enhance productivity and boost competitiveness.

Globe President and Chief Executive Officer Ernest L. Cu said: “We are leveraging our additional 700 MHz and 2600 MHz spectrum by investing heavily on LTE to improve both mobile data and fixed wireless broadband.

For the first half of 2016, datarelated revenues accounted for 50% of Globe’s consolidated service revenues, up from 37% during the same period last year. Total data revenues — which consist of mobile data, home broadband and corporate data services — reached P29.6 billion in the first six months of the year, up 48% from the P20 billion during the comparable period in 2015.

Globe ended the first half of the year with consolidated service revenues of P59.6 billion, 11% higher than the P53.8 billion seen during the same period last year.

The firm earlier reported that its first half consolidated net income rose 3% to P8.96 billion from P8.71 billion during the same period a year ago. It netted P4.6 billion in the second quarter, a 3% year-on-year increase driven by data-related service revenues.

Globe shares were unchanged at the close of trading yesterday at P1,900 apiece.