Globe sees sales growth in ’14

Globe Telecom said revenue growth would likely be sustained this year as it eyes more subscribers amid positive economic fundamentals, a statement on Monday showed.

The company said revenue growth would be in the mid to high single-digit for 2014 as it banks on gains from mobile, broadband and fixed-line data businesses. Globe posted a 9-percent growth in revenues last year to P90.5 billion.

It likewise cited the completion of its network upgrade, which the telco noted would “enhance its competitiveness and generate more business for the telecommunications provider.”

“In anticipation of strong consumer demand for bandwidth-intensive data applications, the company will be devoting a sizeable portion of its capital expenditure for the year to enhance and expand its already modernized data network,” Globe noted in its statement.

For 2014, it has allotted $650 million, which is around the same amount that the Ayala-led telco spent in 2013.

“Data remains the key investment area for Globe given the growth in data that we have seen and are anticipating. This is consistent with our plans to maintain surplus data capacity in advance of significantly growing demand,” Globe president Ernest Cu said in the statement.

He said  the investment involves additional roll-out of LTE sites as well as further improvements in its fixed broadband network.

In 2013, broadband and fixed-line data segments booked robust revenue gains of 20 percent and 13 percent year-on-year, respectively, attributed to rising demand for data and Internet connectivity.

Cu said that sustained growth in subscriber acquisitions would also expand Globe’s revenue growth pipeline this year.

The company ended 2013 with a total mobile subscriber base of 38.5 million, up 16 percent from 33.1 million at the end of the previous year.

Globe also cited the robust economic outlook for the country, following the 7.2-percent gross domestic product expansion in 2013. Such gains bode well for the telecommunications industry, Cu said, and would drive demand for communications devices and services.