Globe 2021 capex hiked to P76 billion

Ayala-led Globe Telecom Inc. has hiked its spending program for 2021, following the approval of additional investments scheduled in the second half of the year.

According to Globe chief finance officer Rizza Maniego-Eala, the capital spending for the year will be hiked by P6 billion to P76 billion versus the P70 billion earlier announced.

This comes as there were some $365-million (P18 billion) worth of investments for the company to upgrade its systems.

“We cannot give the breakdown, but suffice it to say, 90% of that will be spent for data-related requirements, so similar to our capex spend over the past three years,” she told reporters in a virtual briefing.

“Out of the P18 billion, we estimate that only the P6 billion will hit our cash capex guidance this year, such that our guidance for capex moves from P70 billion to P76 billion for 2021,” she added.

The company invested a record P43.3 billion of capital spending in the first half of the year, of which majority or 88% went to data network builds.

Globe reported a 13% growth in its net income for 2021 to P13 billion versus P11.5 billion recorded the same period last year.

The company reported a 4% climb in consolidated service revenues to hit P75.5 billion, driven by data mostly from home broadband as digital activities of Filipinos grew during the period.

“We are pleased to report strong financial and operating results for the first half of 2021 with healthy balance sheet and cash flows despite the re-imposition of stricter lockdowns during the second quarter,” Globe president and CEO Ernest Cu said.

Shares in Globe Telecom closed Monday at P1,980.00 apiece, down by P5.00 or 0.25% from last Friday’s finish of P1,985.00. — BM, GMA News