GLOBE Telecom Inc. is hiking its capital expenditures this year by $100 million, as it ramps up expansion of its mobile data network in the fourth quarter.
In a statement on Friday, Globe said its board of directors approved the addition of $100 million to its original capex of $750 million.
This brings the this year’s capital spending to $850 million, “with the additional investment to be spent in the balance of the year,” the telecommunications firm said.
The additional funds will be used to fast-track its mobile capex program, “allowing fore more deployments of long-term evolution (LTE) services using the 700 megahertz (MHz) and 2600 MHz frequencies, increased 3G capacities, and further expansion of mobile coverage.”
“We expect to further enhance customer experience as we continue with the aggressive deployment of LTE sites, utilizing the 700 MHz, 1800 MHz and 2600 MHz frequencies to address the growing customer demand for bandwidth amid the swelling consumption of multi-media content,” Globe President and CEO Ernest L. Cu was quoted as saying in a statement.
Globe is aggressively rolling out new LTE sites this year, as it leverages on the its additional spectrum from San Miguel’s telco assets, which it jointly acquired with PLDT, Inc. in 2016.
For the first half, the telecommunications giant’s income slipped 10% to P8.08 billion versus P8.97 billion a year ago, because of “higher interest expense and depreciation expenses, coupled with Globe’s share in equity losses and spectrum amortization related to the SMC telco asset acquisition.”
“On a normalized basis (excluding the impact of the SMC transaction), net income would have declined by 4% at P8.7 billion year on year and increased by 8% quarter on quarter,” Globe said.
Shares in Globe increased by P30 or 1.47% to close at P2,074 on Friday. – Patrizia Paola C. Marcelo
