Globe spends P6.6 billion in Capex in 2018 1Q

Globe Telecom, Inc. posted consolidated service revenues of P33.2 billion for the first three months of 2018. Service revenues benefitted from the demand for data-related products across all segments, given the increase in consumption for video streaming and on-demand entertainment. This was likewise helped by Globe’s 4G and LTE network, relevant and affordable product offerings, and an enhanced content portfolio in partnership with world-class content providers.

Mobile revenues reached P25.5 billion due to the growing demand for data as more Globe customers adopt the digital lifestyle. Globe’s mobile subscriber base reached 63.3 million as of end-March 2018, up 8% from the 58.6 million subscribers reported in the same period last year.

From a product perspective, mobile data remains the top contributor to total mobile revenues, accounting for 48%. Mobile data service revenues reached P12.3 billion in the first quarter of the year. Mobile data traffic grew 37% from 131 petabytes last year to 180 petabytes in the first quarter of 2018, given the increasing appetite for video-on-demand and multi-media content. Mobile SMS and mobile voice revenues, on the other hand, generated P5.6 billion and P7.6 billion, respectively, due to the continued shift to internet-based applications, consistent with global trends.

Globe’s home broadband business ended the first three months of the year with P4.3 billion. Its total subscriber base now reached 1.4 million or 17% higher from a year ago. The results were driven by subscriber expansion in fixed wireless solutions (+30%), the introduction of new broadband bundles and GoUnli plans which provide customers value for money, fast and reliable connections and world class entertainment. Globe remains on track with its commitment of bringing leading edge network technology to 2 million homes by 2020.

Globe’s corporate data business likewise posted P2.6 billion in revenues this period. This was mainly attributed to the increasing demand for connectivity and business solutions, resulting to higher customer base expansion, circuit count increase and higher usage. Traditional fixed line voice revenues, on the other hand, reached P770 million.

Globe posted consolidated EBITDA of P16.1 billion. Total operating expenses and subsidy ended at P17.1 billion. EBITDA margin was at 48%.

Net income for the first three months of 2018 stood at P4.7 billion. This was mainly due to EBITDA offsetting depreciation charges and non-operating expenses for the period just ended.
Likewise, Globe’s core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, stood at P4.8 billion.

Globe spent around P6.6 billion in capital expenditures as of end-March of 2018 to support the growing subscriber base and its demand for data. Of the total capital expenditures spent this period, about 64% was for the data service needs of its customers. To date, Globe has a total of 38,963 base stations, with over 25,600 for 4G (Includes HSPA+, WiMAX and LTE) to support the service requirements of its customers.

Last February, Globe announced today that it has initiated discussions with independent third parties for the establishment of a tower company to help speed up the build and deployment of cellular towers in the Philippines. Globe is looking at divesting all or part of its tower assets to independent tower companies as part of its network expansion and optimization plan.