MANILA, Philippines – Globe Telecom on Monday said it will be setting aside $650 million for capital expenditures this year, most of which will be used to enhance and expand its data network.
Globe president and chief executive Ernest Cu said data remains as a key investment area for the Ayala-led telecommunications firm.
“This is consistent with our plans to maintain surplus data capacity in advance of significantly growing demand," Cu said in a statement.
He added that Globe will invest in the additional roll-out of LTE sites and further improvements in its fixed broadband network in 2014.
Globe allotted the same amount for its capital expenditures last year.
Cu said he expects Globe’s topline growth this year 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, Globe’s total revenues jumped 9 percent to P90.5 billion from P82.7 billion in 2012 due to continued demand for data connectivity across its mobile, broadband and fixed line data businesses.
Cu added that sustained growth in subscriber acquisitions is expected to boost 2014’s revenue growth.
Globe ended 2013 with a total mobile subscriber base of 38.5 million, an increase of 16 percent from 33.1 million at the end of 2012.
"We remained steadfast in our strategy to grow our postpaid business, even amidst incurring subsidy and re-contracting costs we consider as investments to acquire and retain high-quality postpaid subscribers," said Cu.