Globe Telecom forecast a return to revenue growth this year after declines in 2020, but warned its bottom-line will likely be impacted by higher depreciation charges related to an aggressive capex programme.
In a statement, president and CEO Ernest Cu said the Covid-19 (coronavirus) pandemic impacted revenue across all businesses except home broadband: he expects low- to mid-single digit growth in 2021.
Cu said Globe Telecom “pulled through” a challenging 2020. “Our prudent financial management in these turbulent times allowed us to maintain strong cash flows, giving us the flexibility to continue to invest into our network”.
The operator plans to increase capex from PHP60.3 billion ($1.3 billion) to PHP70 billion.
In 2020 it added nearly 1,300 towers, 200 more than in 2019, with LTE upgrades 14 per cent higher at 11,529 sites.
It deployed 10,031 5G sites in seven areas, including Metro Manila.
Net profit dropped 16 per cent to PHP18.6 billion due to one-time impairment costs, additional provisions for doubtful accounts and greater depreciation expenses.
Operating revenue declined 2 per cent to PHP146.4 billion, with the mobile service figure 7 per cent lower at PHP103.1 billion, mainly due to the negative effects of government restrictions.
Mobile data revenue rose marginally from PHP71.4 billion to PHP72 billion, with voice down 16 per cent to PHP20.1 billion and SMS 29 per cent lower at PHP11 billion.
Prepaid subscribers decreased 19 per cent to 74.1 million with ARPU 14 per cent lower at PHP93: post-paid customers were down 7 per cent to 2.5 million and ARPU 6 per cent less at PHP850.
Home broadband sales grew 23 per cent to PHP26.8 billion, driven by demand for online education, remote working and videoconferencing services.Subscribe to our daily newsletter Back