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By Darwin G. Amojelar, Reporter
GLOBE Telecom Inc. on Tuesday said it would be
hard to replicate the double-digit revenue growth this year owing to
higher inflation.
“We are seeing some softening in the trend of
our revenue growth and it has something to do with the overall
consumption because of the inflation and higher exchange rate that
could affect OFW [overseas Filipino worker] remittances,” Gerardo
Ablaza, Globe president said in a briefing after the company’s
stockholders’ meeting.
The government earlier reported that inflation
rose 5.4 percent in February owing to higher food and oil prices.
For this year, the Development and Budget Coordinating Committee
projects an inflation rate of between 3 percent and 5 percent.
“We are watching the impact of inflation and
the impending food crisis. The rice prices have increased
significantly especially in the Philippines. We are the largest rice
consuming [country] in the world and any changes in the prices of
rice coupled with the high oil prices will have an inflationary
pressure,” Ablaza said.
“If [the budget for telecom]
services comes from the same wallet that our consumers use for other
services, [the industry] could potentially be affected,” he
added.
Last year, Globe, which is partly-owned by
Asia’s biggest telco, Singapore Telecommunications Ltd. posted a
profit of P13.3 billion, 13 percent higher than the previous year.
The company’s consolidated service revenues
were up by 11 percent to P63.2 billion, driven by an 11 percent and
7 percent growth from its wireless and wireline businesses,
respectively.
Ablaza also projected 15 million addressable
subscribers for the industry or a 75 percent penetration rate by
2010.
Globe’s subscriber base broke past the 20
million mark, ending the year with 20.3 million in subscriber
identification modules cardholders or a 30 percent increase
from last year.
Delfin Gonzalez, Globe chief finance officer,
said the company plans to borrow P7.5 billion to partially fund its
capital expenditure of $400 million to $450 million this year.
He said that Globe is completing an arrangement
with Standard Chartered Bank for a loan of P2 billion to P2.5
billion, with a maturity of 3 to 5 years.
Ablaza also said that the company will continue
to construct its cable landing station in Ballesteros, Cagayan even
without the permit from the National Telecommunications
Commission.
“We would like to have the facilities to
complete by the third quarter of the year,” he said.
Globe had said that it is investing $40 million
to construct a cable landing station in Cagayan because its
facilities in Nasugbu, Batangas, are vulnerable to earthquakes and
other natural calamities.
The Ayala-led company said the new cable landing
station would add capacity for international services to
address the growing demand brought about by the rapid growth of the
cellular phone, leased line, Internet and other telecommunication
services.
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