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Globe mulls $800 M capex for 2016

Louella Desiderio (The Philippine Star) - November 11, 2015 - 9:00am

MANILA, Philippines - Ayala-led Globe Telecom Inc. is planning to earmark up to $800 million in capital expenditures for 2016.

Globe chief commercial officer Albert de Larrazabal told reporters yesterday the telco may spend at least $800 million in capital expenditures for next year amid an expected strong data uptake.

“I think more than half of it (capex) will be data,” he said.

The company also intends to continue to invest in core services such as voice and SMS next year to ensure the good quality of the service is maintained as the usage rises in existing areas.

De Larrazabal said part of the capex would also be spent to modernize the fixed-line infrastructure of Bayan Telecommunications Inc.

Bayan was acquired by Globe from the Lopez Group earlier this year.

De Larrazabal said Globe would likely be tapping the debt market to fund part of next year’s capex.

“By end of November, we will have clearer view,” he said.

For this year, the firm expects to spend close to $800 million of the $850 million capital expenditures allotment.

As of end-September, Globe saw its core net income grow 10 percent to P12.7 billion from P11.6 billion.

The telco’s net income, meanwhile, rose to P14.1 billion in the nine-month period from P10.5 billion a year ago.

ACIRC AYALA BAYAN BAYAN TELECOMMUNICATIONS INC BILLION DE LARRAZABAL GLOBE GLOBE TELECOM INC LARRAZABAL LOPEZ GROUP YEAR
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