Globe allots P89 billion for 2022 capex

MANILA, Philippines (Update 1, Feb. 10, 2022, 3:43 p.m.) — Globe Telecom Inc. has earmarked P89 billion in capital expenditures for 2022, slightly lower than last year’s all-time high capex, to continue its aggressive network expansion.

Globe said it invested an all-time high P92.8 billion in 2021, higher than its P76 billion guidance for the year to give Filipinos better, more meaningful digital experiences.

About 86 percent of last year’s capex went to data-related requirements, which included building of 1,407 new cell sites, upgrading of over 22,300 mobile sites, and installation of over 2,000 5G outdoor sites and in building solutions.

This year’s capex will be used by Globe to build new cell sites, upgrade existing sites to 4G/LTE, accelerate rollout of 5G connectivity and fast-track the fiberization of Filipino homes nationwide, and further boost the internet quality and coverage in the country.

“We are optimistic that our strategy to focus on innovation to serve our customers better and to address their needs and concerns through various digital platforms, backed by our strong network, will solidify our leading position in the market. Rest assured that we will continue to revamp and upscale our services in order to secure the future of a digitally-transformed Philippines,” Cu said.

Globe finished 2021 on a high note despite the prevailing challenges of the pandemic and the devastation in December of Typhoon Odette, posting a nine percent year-on-year increase in its core net income at P21.2 billion, and a two percent year-on-year improvement in EBITDA at P74.9 billion.

With higher EBITDA and lower non-operating expenses and taxes, Globe’s net income reached a record high P23.7 billion last year, up 27 percent from P18.6 billion in 2020.

The Ayala-led telco also closed 2021 with record-high consolidated service revenues of P151.5 billion, four percent higher than the P146.4 billion recorded a year ago and surpassing 2019’s pre-pandemic level by two percent.

Globe’s topline expansion was driven by home broadband and corporate data given the increased data consumption among the Filipinos for work, education, health care, business, entertainment and essential social interaction.

Fourth quarter gross service revenues, however, stood relatively flat compared to the company’s strong third quarter as Typhoon Odette hampered the revenue momentum.

Combined with the rebates given to broadband customers and the impairment costs from network related damages, Globe said the typhoon’s impact on its fourth quarter 2021 operations reached P2.2 billion.

“Globe showed admirable resilience in 2021 despite the pandemic and the devastation of Typhoon Odette in the country. We have emerged to be an outstanding digital services enabler by rapidly adapting our strategies to address both the challenges and the opportunities created by the global health crisis and natural disasters,” Cu said.

“As a result, our financial performance remained stable and posted healthy growth, enabling us to reinvest back into our network as customer data demands grow larger each year,” he said.

Globe’s total mobile subscriber base reached 86.8 million last year while total home broadband subscriber base stood at 3.7 million.

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Editor's note: Changed the year in the headline to "2022".