2014 a banner year for Globe Capex budget of $850 M set for 2015

MANILA, Philippines - Ayala-led Globe Telecom Inc. reported yesterday  that 2014 was another banner year for the company on the back of record level financial bottom line and revenues allowing the company to allot $850 million for its capital expenditures to sustain the growth momentum amid intensifying competition this year.

Globe president and chief executive officer Ernest Cu said that 2014 was another banner year for the company despite intensifying competition as it delivered “best-ever consolidated service revenues, EBITDA (earnings before interest, taxes, depreciation, and amortization), net income and core net income.

“Our full year results are testaments of our continued commitment in creating a complete digital experience, delivering best-in class products and services and a whole new level of customer service experience for our subscribers,” Cu said.

The company’s core net income, which excludes the impact of accelerated depreciation and other non-recurring charges, reached P14.49 billion last year or P2.87 billion higher compared to P11.62 billion in 2013 driven by solid performance of its mobile, broadband, and fixed line data businesses.

Service revenues went up nine percent to a record level of P99.02 billion from P90.5 billion with fourth quarter revenues hitting an all-time quarterly high of P26.3 billion amid the sustained demand for mobile, broadband and fixed line data connectivity.

Mobile revenues increased by seven percent to P78.1 billion from P72.8 as the number of subscribers went up by 14 percent to 44.04 million last year. Likewise, mobile and other data revenues jumped 23 percent to P14.31 billion amid the company’s Free Facebook offer.

On the other hand, broadband revenues surged 22 percent to P12.69 billion while fixed line data revenues grew 17 percent to P5.48 billion as the number of both wired and wireless broadband subscribers jumped 37 percent to 2.79 million.

“Reaping the benefits of our modernized network, with 100 percent 3G and 4G coverage, we have seen a steady and healthy growth in both our mobile and broadband businesses, surpassing all of our expectations, and we are confident in sustaining this momentum moving forward,” Cu said.

According to Cu, the company expects the market to remain challenging and competitive this year given the shifting focus of the customer’s lifestyles and usage into the digital world.

“Against this environment, the company believes that the current revenue momentum built, coupled with the adaptive platform of digital lifestyle offers to cater to the subscribers’ changing lifestyle, could further push revenues to increase by high single-digit from 2014 level,” Cu said.

Globe reported an 11 percent increase in operating expenses and subsidy to P59.75 billion due to higher spending across all accounts, except for interconnect and re-contracting costs, was largely to support management strategies, business, subscriber and data-network expansion, and post-Yolanda restoration activities.