GLOBE Telecom, Inc. has set its capital expenditure (capex) guidance for 2022 at P89 billion, a 17% increase from the P76 billion the company had set for 2021.

The company’s capex guidance for 2022, however, is lower than the P92.8 billion it spent last year.

“For 2022, the company is committing capex of P89 billion to continue its aggressive network expansion,” the company said in a disclosure to the stock exchange on Wednesday.

Globe’s expansion plans include the construction of new cell sites, upgrade of existing sites to 4G (fourth generation)/LTE (long-term evolution), accelerated rollout of 5G connectivity, and the rapid “fiberization” of homes nationwide.

“Total capex for 2021 represented 61% of gross service revenues and 124% of EBITDA (earnings before interest, tax, depreciation and amortization),” the company said.

“About 86% of the capex went to data-related requirements in order to serve the rising demands of Filipinos consumers who access the internet to carry on with their daily activities, maintain business operations and deliver critical services,” it added.

Globe saw its core net income for 2021 grow by 9% to P21.2 billion from P19.5 billion in 2020.

Its full-year consolidated service revenues grew by 4% to P151.5 billion from the P146.4 billion reported in 2020.

The company attributed its growth to the “sustained outstanding performance of home broadband as well as corporate data.”

Broken down, mobile revenue for the year slightly increased to P104.4 billion from P103.7 billion in 2020, while home broadband revenue grew by 10% to P29.4 billion from P26.8 billion previously.

Corporate data revenue increased by 12% to P14.2 billion in 2021 from P12.6 billion in 2020, while revenue from fixed-line voice fell by 13% to P2.3 billion from P2.6 billion a year earlier.

“The significant growth in data revenue, which accounts for 80% of total service revenues mainly fueled this year’s performance, given the growing demand for high-speed, reliable and affordable internet connectivity for work, business, education, entertainment, telehealth and other online services,” the company said.

Globe also said its total operating expenses and subsidy as of end-December 2021 amounted to P76.6 billion from P72.9 billion in 2020, or up by 5% “due mainly to the increases coming from several expense line items except for subsidy, lease and provisions.”

The company ended 2021 with total costs and expenses of P117.7 billion, or 9% higher than P108.3 billion in 2020.

“Higher expenses for the year were mainly to support management strategies, business, and data-network expansion and also the restoration efforts due to the Typhoon Odette’s onslaught,” it said.

The company also said it closed 2021 with a total subscriber base of 86.8 million, up 13% from 2020.

“Globe built 1,407 new cell sites nationwide in 2021 including both 4G LTE and 5G, upgraded over 22,300 mobile sites, and installed over 2,000 5G outdoor sites and in-building solutions as of end-December of 2021. While on the fixed line front, Globe installed over 1.4 million fiber-to-the-home lines.”

Globe Telecom shares closed 0.72% lower at P3,032 apiece on Wednesday. — Arjay L. Balinbin

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