Globe allots more funds for broadband, wireless

TELECOMMUNICATIONS firm Globe Telecom Inc. is allocating more funds next year for its broadband and wireless businesses citing the growth opportunities in these areas as the mobile division peaks, top officials said on Monday. During a media briefing, chief financial officer Delfin Gonzalez said the company has budgeted $500 million for next year, roughly the same amount the firm plans to spend for full-year 2009.

"Our spending for mobile is going to be smaller than what we anticipate to spend for broadband," said president and chief executive officer Ernest L. Cu. He said for next year, the firm plans to spend 35 percent for the broadband business, 30 percent for the wireless services, among others.

"For mobile, we are not saying there is no growth. We are saying the growth has been tempered as the market nears maturity. But we still feel we can eke out growth.There are still people who can cross networks," he said.

For the first nine months of the year, the company had a subscriber base 23.13 million. Gonzalez said the firm may see this number grow further toward the end of the year, although he declined to provide further details.

Globe's broadband subscribers number at 517,000 for the first nine months, ahead of the firm's full-year guidance.

Service revenues for the first nine months of the year hit P47 billion, up 1 percent as mobile revenue losses were offset by broadband and fixed-line data, which grew 22 percent and 69 percent, respectively.

Mobile service revenues declined 2 percent to P40.38 billion in the first nine months.

The firm's profits in the January to September period rose 12 percent to P9.9 billion, including a one-off gain from equipment and exchange transaction. Globe Telecom also declared a special dividend of P50 per share.
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