GLOBE Telecom has spent a total of P19.1 billion in capital expenditure (capex) in the first quarter of the year, exceeding last year’s spending by 79 percent.
This capex investment represents 51 percent of gross service revenues and 105 percent of earnings before interest, taxes, depreciation and amortization.
Around 91 percent of the investment went primarily to data-related requirements to support the fast-growing data demand and provide superior data customer experience. Globe’s continuous modernization of its network to make 5G as well as fiber technology available to more customers nationwide, is part of its effort to help the country achieve a #1stWorldNetwork.
As of end-March 2021, Globe said it built a total of 318 new cell towers, 152 percent higher versus the same period last year. Total builds for wireless expansion which includes both 4G LTE and 5G reached 4,210 sites in the first quarter of 2021 or up by 106 percent from a year ago. Globe also installed over 287,000 high-speed lines reflecting a 212 increase from the first quarter of last year.
Moreover, Globe’s 5G network now covers 84 percent of Metro Manila, expanding to total of 1,383 sites including Bacolod, Boracay, Cebu, Iloilo, Cagayan de Oro and Davao as of end-March this year.
It also made its 5G service available abroad with the launch of its 5G service in Thailand, United Arab Emirates, Vietnam, Saudi Arabia, Singapore, Hong Kong and Kuwait in the first quarter of the year.
Globe also said it is set to launch its 5G roaming services to more international destinations across Asia, North America and Europe in order to extend 5G connectivity for Filipino workers and travelers.
“Despite the resurgence of Covid-19 cases in the country and the lingering uncertainties from the pandemic, we are encouraged by the improvements in Globe’s first quarter results. Looking ahead, we believe that Globe is well positioned to provide more digital solutions and innovative offers to make our services more relevant to our valued customers, especially during this time of crisis. Our 5G and fiber rollout as well as the continuous upgrading of our network will remain our utmost priority, as reliable connectivity is indispensable, both to overcome the pandemic and help fuel the recovery of the country’s economy,” said Ernest Cu, president and chief executive officer.
Globe ended the first three months of the year with consolidated service revenues at P37.8 billion, up three percent from P36.9 billion reported a year ago, owing to the robust data revenue contribution mostly from the broadband segment. Its net income stood at P7.3 billion for the first quarter or up 11 percent relative to the same period of 2020.
Globe said it was able to save some P330 million with the implementation of the Create Law which they will reinvest in building and strengthening the network. (KOC)