MANILA - AS it reported growth in consolidated service revenues at the end of 2006, Globe Telecom has announced further investments in broadband network infrastructure in different metropolitan areas in the country, including Cebu, this year.
During its annual stockholders’ meeting at the Intercontinental Hotel in Makati last Tuesday, Globe reported that its consolidated service revenues remains on an upward move at four percent year-on-year to close at P57 billion.
Globe said its earnings before interest, tax, depreciation and amortization (Ebitda) margin “remained healthy” at 65 percent.
Its Ebitda was at P37.2 billion at the end of 2006. Its net income at the end of 2006 grew by 14 percent at P11.8 billion over that of 2005.
Globe president and chief executive officer Gerardo Ablaza Jr. said during the meeting that for the company to attain “what we want to be” in the next 10 years, among the “main imperatives” would be to “drive growth in broadband arena,” “seek new sources of growth,” sustain competitiveness of its core wireless business and “diversify.”
In a press conference, Ablaza said Globe is looking into possible “startup or equity partnership” for digital media content.
“If it makes sense for us, we will consider. But there is no talk of acquisition with anybody,” he said.
Ablaza also noted that most of the questions raised by stockholders during the meeting were related to voice landline and broadband access.
This, he said, is indication that there is a “felt need for broadband connectivity.”
Broadband
In response to this need, he added, Globe decided to set aside more than 50 percent of its capital expenditure (capex) for this year on broadband infrastructure.
Globe is setting aside capex of $350 million for this year. The capex also includes “possible investment in new cable system” that will connect the Philippines to other countries, said Ablaza.
In an interview, Globe subsidiary Innove chief executive officer Gil Genio said about $40 million to $50 million of this year’s capex will also go into establishing more cellsites for Globe’s 3G (third generation) and 2.5G network.
He said “a lot” of these new cellsites will be in metro areas in Cebu and Mindanao. (LAP)
