Globe expects to ‘sustain momentum’-A A +A
Thursday, February 27, 2014
GLOBE Telecom is likely to sustain its revenue growth momentum this year on a string of positive developments that include steady growth in subscriber acquisitions, enhanced network capacity and sustained positive economic outlook, the company said.
President and CEO Ernest Cu said he expects the company’s topline growth in 2014 to hover in the mid to high single-digit from 2013 level on expectations that the company’s mobile, broadband and fixed-line data businesses will continue to provide revenue growth support. In 2013, the company generated total revenues of P90.5 billion, a nine percent increase from P82.7 billion in the year prior, underpinned by continued demand for data connectivity across its mobile, broadband and fixed line data businesses.
Benefits of the company’s modernized and data-ready network following network transformation initiatives in the past two years are also expected to enhance its competitiveness and generate more business for the telecommunications provider.
In anticipation of strong consumer demand for bandwidth-intensive data applications, the company said it will be devoting a “sizeable portion” of its capital expenditure for the year to enhance and expand its already modernized data network.
“Data remains as the key investment area for Globe given the growth in data that we have seen and are anticipating. This is consistent with our plans to maintain surplus data capacity in advance of significantly growing demand,” said Cu. He said the investment involves additional roll-out of LTE sites as well as improvements in its fixed broadband network.
In 2013, broadband and fixed-line data segments booked revenue gains of 20 percent and 13 percent year-on-year, respectively, attributed to rising demand for data and internet connectivity. The company is allocating a capital expenditure of up to $650 million for 2014, basically the same amount of capital investments it made last year.
Cu said that sustained growth in subscriber acquisitions will also expand revenue growth pipeline this year. (PR)
Published in the Sun.Star Cebu newspaper on February 28, 2014.