Globe invests P32.5B in capex

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For the first nine months of 2018, Globe invested around P32.5 billion or $618 million in capital expenditures to support the growing subscriber base and address its rapidly changing and rising demand for data.

The investment amounts to nearly 32 percent of topline revenues, among the highest in the region, as the company continues to reinvest in its network to continue improving quality and experience of its subscribers.

About 78 percent of the total expenditures for this period was for data-related services.

With its capital expenditures plan, Globe not only remains on course to fulfill its commitment of deploying LTE services to 95 percent of cities and municipalities nationwide by the end of 2018 but also allows for upgrading its network to support the pilot 5G deployment in 2019.
To date, Globe has a total of 40,522 base stations, with close to 27,000 for 4G to support the service requirements of its customers.

Total customer base grew by 10 percent against last year, with growth coming from both mobile and the home broadband front. Globe’s mobile subscriber base totaled 65.4 million as of end September 2018, up 10 percent from the 59.3 million subscribers reported in the same period last year.

This increase led to mobile data traffic growing by 49 percent from 430 petabytes last year to 641 petabytes this period. Complementing the growth in mobile, total home broadband subscriber base grew around 23 percent and now stands at over 1.5 million, of which around 48 percent are home wireless subscribers.

Gains on the broadband business allow Globe to capture more home broadband usage, in line with the company’s bid to roll out ultra-fast Internet service to 2 million homes by 2020.

On a post-PFRS basis, Globe closed the first nine months of 2018 with consolidated service revenues of P101.9 billion, with the third quarter revenues increasing to P34.6 billion or up 2 percent from prior quarter.

Excluding the impact of the PFRS 15 adjustments, total consolidated service revenues as of end-September this year was P103.3 billion or 9 percent increase year-on-year.

The sustained growth momentum was fueled by better-than-expected data-related revenue growth across all business segments.

This performance was boosted by the most pervasive 4G/LTE network, supported by the company’s superior content offerings, through its partnerships with industry leaders and global content providers of music, lifestyle, video and eSports.

Please note that all post PFRS numbers quoted are only estimates and will be finalized once Globe’s automation efforts on the adoption of the new accounting standards are completed.

Mobile revenues for the period grew to P77.7 billion on a post-PFRS basis, while pre-PFRS revenues registered at P79.1 billion for the same period, up 8 percent from a year ago.

From a product perspective, mobile data revenues amounted to P38.7 billion for the first nine months of the year, with tailwinds from increasing consumer spending on mobile data and sustained growth in mobile data traffic.

Mobile data continued to be the top contributor to the Company’s total mobile business and now accounts for 50 percent of gross service revenues from 43 percent a year ago.

Mobile SMS and mobile voice revenues for the period ended at P16.3 billion and P22.7 billion, respectively.

Excluding the impact of the PFRS 15 adjustments, mobile data, mobile SMS and mobile voice revenues stood at P39.5 billion, P16.6 billion and P23.1 billion, respectively.

Globe’s home broadband business showed a 9 percent increase versus the second quarter and brings year-to-date revenues to P13.5 billion (post-PFRS), attributed mostly to subscriber expansion in fixed wireless solutions, supported by the affordable, flexible home broadband bundles and plans that’s best suited for the budget-conscious family.

On a pre-PFRS basis, home broadband revenues stood at P13.5 billion or up 15 percent versus a year ago.

The corporate data business posted P8.4 billion (post-PFRS) in revenues this period with the sustained increase in customer base, circuit count and usage.

Globe has been continuously modernizing its corporate data network given its thrust to deliver fast, reliable and secure Internet connectivity, as well as provide advanced business solutions that fit the needs of its enterprise clients.

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