Globe Telecom said it was able to overcome global market predictions of a financial slowdown in the telecommunications industry after its overall service revenues rose steadily in the past five years. This was propelled by innovative mobile strategies such as customized mobile plans and promos, wider content offerings, and streamlined customer experience.
Back in 2013, analysts from Ovum, London-based independent consultancy firm specializing in telecommunications, predicted that no other region in the world but Africa will see revenue growth at a compounded annual growth rate (CAGR) above 3% between 2012 and 2018. It added that service revenues of operators globally will contract in 2018 for the first time in the history of mobile industry.
With strong mobile strategies in place, Globe witnessed a 9.1% CAGR for its overall service revenues from 2014 to 2018, outperforming its main competitor and the local telco industry during the same period.Globe Telecom’s CAGR in the past five years was also higher than the 5.6% it recorded from 2009 to 2013. CAGR shows the rate of return of an investment over a certain period of time.
Globe said its rapid growth in service revenues is key in fueling investments for better innovations in digital solutions, wider access to content, more bundled offers, and better quality of user experience. Geared to meet the customer demand for more bandwidth-intensive content, Globe has increased its capital expenditure (capex) guidance to P63 billion in 2019.