Globe Telecom Inc. on Monday said it plans to spend up to $750 million this year, down from a capital expenditure of $850 in 2015.
The company, owned by conglomerate Ayala Corp., said the 2016 capex included spending for the deployment of long-term evolution, increased network capacities and coverage and modernization of fixed line and data infrastructure.
Globe to date has 28,336 base stations, with over 18,300 for 4G1, to support the service requirements of customers.
Globe posted a net income of P16.5 billion in 2015, up 24 percent from P13.4 billion it booked in 2014.
The growth in profit was supported by one-time gains coming from the sale of a 51-percent equity stake in Yondu Inc. and the acquisition of a 98.6-percent stake in Bayan Telecommunications Inc.
Globe’s core net income, which excludes the impact of non-recurring charges, including one-time gains and accelerated depreciation charges, foreign exchange and mark-to-market charges, also rose 4 percent to P15.1 billion from P14.5 billion in 2014.
Excluding Bayan’s results, Globe’s net income and core net income jumped 22 percent and 5 percent, respectively, from 2014, the company said.
Globe said it recorded consolidated service revenues of P113.7 billion last year, or 15 percent higher than the previous record of P99 billion in 2014.
Globe said net income in 2015 jumped 23 percent from a year ago, bolstered by record revenues and one-time gains.
Globe’s mobile revenues grew 9 percent to P85.1 billion in 2015 from P78.1 billion reported a year ago, driven by strong revenues across all mobile brands.
Globe’s mobile subscriber base reached 52.9 million as of end-2015, up by 20 percent from 44 million subscribers reported in 2014.
Mobile data service revenues surged 55 percent in 2015 to P22.1 billion in 2015 from P14.3 billion in 2014 while broadband business, which now includes Bayan, also sustained its growth momentum, increasing both in revenues and subscriber base by 38 percent and 55 percent, respectively.
Total broadband service revenues reached P17.5 billion in 2015, with total subscriber base now at 4.3 million.
Globe’s fixed-line data business improved 40 percent to P7.7 billion in 2015 from P5.5 billion posted in 2014.
Globe in October borrowed P7 billion from Metropolitan Bank & Trust Co. to finance part of last year’s capital expenditures. Globe signed a 10-year, P5 billion and 7-year $45-million or P2-billion term loan with Metrobank.
“This new loan facility from Metrobank will help us address the demands of our customers in their continuing shift to a digital lifestyle. Globe is committed to invest in additional network capacities to handle the robust growth in data traffic from our customers,” Globe chief financial officer Alberto de Larrazabal earlier said.
Globe allocated the bulk of the investment for data-related projects, including the company’s broadband network, capacities for wireless data, LTE and domestic and international transmission facilities.