Globe Telecom sticks to ₱63 B capex in 2020 despite pandemic

Published April 21, 2020, 12:00 AM

by manilabulletin_admin

By EMMIE V. ABADILLA

Globe Telecom Inc. will fulfill its ₱63-billion capital expenditure commitment for 2020, up from the ₱51 billion it spent last year, despite predictions that the current global health crisis will catapult economies into a meltdown worse than the Great Depression almost a century ago.

Globe President and CEO Ernest L. Cu
Globe President and CEO Ernest L. Cu

However, the magnitude of COVID-19’s impact on the company’s overall business operations and the whole economy will have to be assessed further, President and CEO Ernest L. Cu yesterday (April 21, 2020) announced.

“We recognize the critical risks that a disruption from an emerging infectious disease can bring to our operations. And from the onset, as part of our Business Continuity Management Plan, we already prepared for workforce health and safety, supply chain disruption and the need to provide seamless connectivity, among other things,” he underscored.

Last year, Globe’s ₱51 billion capex was 34 per cent of gross service revenues and 67 per cent of full year earnings before interest, taxes, depreciation, and amortization (EBITDA).

The telco also forged more partnerships to anchor infrastructure development at a larger scale, resulting in 139 per cent more cell sites and 28 per cent more 3G and 4G base stations compared to 2018.

Despite the dampened economic growth in the global and domestic front in 2019, it was “another good year” for Globe, which netted ₱22.3 billion earnings, up 20 per cent from 2018, on ₱149.0 billion consolidated service revenues, 12 per cent higher in the comparative period.

Globe cited its integrated approach to value creation, sustainability and risk management as the drivers for its 2019 performance.

“The true value we create lies in the impact we have on the lives of people – our customers, employees, business associates, suppliers, vendors and Filipinos at large. Our employees are at the forefront of helping us achieve our goals and vision and are key to furthering our sustainability agenda,” Cu elaborated.

The telco launched the Globe At Home Air Fiber 5G postpaid plans which made the Philippines the first Southeast Asian country to experience the fifth generation fixed wireless broadband.

Globe ended 2019 with over 94 million mobile customers and over 2 million home broadband customers, representing a year-on-year increase of 27% and 25%, respectively.

“We have made strong strides aligned with our vision of redefining customer experience, enabling last mile connectivity and revitalizing the country’s digital economy. Our performance in 2019 is a testament of our integrated approach to value creation by focusing on customer experience, driving sustainability and adopting a holistic approach to risk management,” he noted.

 
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