Globe earmarks $750 M for 2017 capex

MANILA, Philippines - Globe Telecom Inc. is allotting $750 million for capital expenditures this year, with the bulk intended to support data services, Globe president and CEO Ernest Cu told reporters yesterday.

The capex would be funded through internally generated cash flow.

Cu said the telco would want to keep the capex at a lower level this year compared to last year’s $1 billion.

“You have to balance everything out, right? Your revenues, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) margins, cash generation, capex — all that has got to be balanced,” he said.

A large part of last year’s capex was spent on data capacity for both mobile and wireline using different technologies of 3G, LTE (Long Term Evolution) and WiFi, as well as to expand network reach.

For this year, Cu said the plan to is to continue using the bulk of the capex to boost data capacity amid growing demand for such service.

As of end-September, Globe’s net earnings reached P11.72 billion, down 17 percent from P14.14 billon in the same period in 2015 due to higher non-operating charges and depreciation, as well as costs related to the transaction with SMC.

Globe’s core net earnings amounted to P11.75 billion from January to September last year, eight percent lower than the P12.71 billion in 2015.

The Ayala-led telco had 65.4 million mobile subscribers as of end September.