Globe Telecom 2020 Profits Down 13%

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Globe Telecom Inc. posted core net income of ₱19.5Bn in 2020, a decline of 13% compared to its earnings in 2019. The decline was mainly attributed to the effects of the pandemic which battered revenues across all lines of business except the Home broadband business, which achieved double-digit growth.

The company invested a total of ₱60.3Bn in capital expenditures (capex) in 2020, 18% higher than previous year’s record-level spending. For 2021, the company committed ₱70Bn in capex projects.

The company is said to have recovered in the second half of 2020, with revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) falling within the revised earnings guidance.

Ernest L. Cu, President and Chief Executive Officer of Globe Telecom Inc. expressed pride in the company’s results despite many headwinds:

“2020 was a challenging year for Globe but we pulled through despite the COVID-19 pandemic and adverse economic environment. Our prudent financial management in these turbulent times allowed us to maintain strong cash flows, giving us the flexibility to continue to invest back into our network.”

We are proud of what we achieved this year particularly the significant gains in the network front. We have been heavily investing in our network infrastructure, spending over ₱60Bn in 2020 alone or more than ₱265Bn investment for the last five years, to support the government’s call for improvement in telco services in the country. “

“In 2021 we have earmarked another record-level cash capital expenditure of about ₱70.0 billion, to provide our customers with superior network performance and quality of service as we aim to deliver first-world internet connectivity for every Filipino.”

“As an enabler of the digital economy, we are fully committed to provide digital solutions to help more Filipinos adapt to an unfamiliar lifestyle, brought about by the pandemic, that all of us have had no choice but to adjust to. We remain optimistic that our strategy to focus on fulfilling the needs of our customers, backed by our resilient and improved network, will drive our performance moving forward.”

Source: PSE Edge