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THE
Philippines’ second-largest telecommunications carrier
said that it would try to attract the same amount of new
subscribers this year as it did in 2007.
Despite expectations of slower growth in
the industry, Globe Telecom Inc. will still try to
increase its new customers by one-third, Globe Telecoms
Inc. President Gerardo Ablaza said, without disclosing
figures.
Controlled by conglomerate Ayala Corp.
and Singapore Telecommunications, the company ended the
previous year with 20.3 million cellular subscribers, up
30 percent from 2006’s 15.7 million.
Ablaza also said that the mobile-phone
service provider would certainly want to take a
proportionate share of this year’s estimated 8 percent
to 10-percent revenue market growth as what analysts
have projected.
Rival Philippine Long Distance Telephone
Co. (PLDT), which owns Smart Communications, still leads
the race with more than a 30 million wireless subscriber
base at the end of last year. Coming in third is Digital
Telecommunications Philippines Inc. with about 5.5
million subscribers last year.
The Globe executive also expects that 70
percent of the Philippine population will have mobile
phones this year. The mobile-penetration rate last year
stood between 57 percent to 60 percent from about 50
percent at end-2006.
But a number of factors could hamper
industry growth this year, Ablaza admitted.
Among them include a stronger peso,
rising oil prices, intense competition and an economic
slowdown in the United States, all of which could affect
consumer spending.
“We are watchful of how the strength of
the peso affects the overseas Filipino workers and
their families. Obviously, it redounds to conversion.
They would spend less given the smaller value of their
dollars,” Ablaza said.
Moreover, the official noted that
competition may even increase especially with new and/or
reemerging players.
Operating margins will continue to be
under pressure as the strong peso could continue to hold
back international long distance revenue growth.
The
company’s focus on broadband business will mean more
investments and Globe said it would take time before
this will significantly contribute revenues and
earnings.
Globe is allotting up to $450 million
for capital expenditures (capex) this year. Last year,
the company allocated P13.9 billion in capex.
Of this year’s total capex, $180 million
will be spent on broadband (DSL and wireless), $130
million for core mobile services, $40 million for
information technology, and $100 million for redundancy
expenses such as the company’s investment in the TGN-Intra
Asia Cable System.
Globe chief financial officer Delfin
Gonzalez Jr. said may borrow up to $300 million to
partly finance this year’s capital investments.
The
remaining amount could be sourced from the company’s
funds.
“The borrowing will happen during the
course of the year. We are looking at $200 million to
$300 million. It could be peso or dollar borrowing or a
combination of both,” said Gonzalez.
Globe posted P13.3 billion in net income
last year, up 13 percent the previous year.
The company also declared a semi-annual
cash dividend of P37.50 per common share, or a total of
P5 billion, for shareholders on record as of February
18. The move is in line with its policy of distributing
75 percent of the previous year’s net profit to
shareholders, and represents a 14-percent increase over
the previous semiannual dividend of P33. |
