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Globe sees return to revenue growth in 2021

/ 05:16 AM February 18, 2021

Globe Telecom expects service revenue to grow in 2021, reversing the slowdown seen last year due to the COVID-19 lockdown.

Globe chief finance officer Rizza Maniego-Eala said revenue growth would likely end in the “low-to-mid single digit” area.

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It dropped 2 percent for full-year 2020 as all major business segments, save for home broadband, felt the impact of the global health crisis.

“We are optimistic about regaining the momentum we have lost as the economy continues to recover,” Maniego-Eala said on Wednesday.

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Globe typically does not share net income targets but it noted that margins on earnings before interest, taxes, depreciation and amortization (Ebitda)—a measure of profitability—would remain stable above 50 percent.

Eala said Globe expected lower margins on certain data-­related products. It plans to offset this by controlling expenses.

The company is boosting capital spending this year as demand for internet services continues to rise.

Globe CEO Ernest Cu said the company was allocating a record P70-billion capital investment budget for 2021. This is 16 percent more than its spending budget in 2020.

Most of the funds will be used to upgrade Globe’s mobile and fixed-line networks through the construction of new cell towers and laying down fiber lines.

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TAGS: Globe telecom, revenue
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