Ayala-led Globe Telecom Inc. yesterday signed a total of P13-billion loan facility that will be used to finance its capital expenditure (capex) this year.
In a disclosure to the Philippine Stock Exchange, Globe said it closed term loan facilities with Bank of the Philippine Islands and Metropolitan Bank & Trust Co. for P3 billion and P10 billion, respectively.
To date, Globe has raised a total of P40-billion loans this year including P5 billion from China Banking Corp., P7 billion from Philippine National Bank, P10 billion from Metropolitan Bank & Trust Co., and $100 million or around P5 billion loan from Bank of China Ltd.
The loans will be used to finance this year’s capex which Globe recently raised from P70 billion to P76 billion.
Globe invested a record capex level of P43.3 billion in the first half of 2021 to improve its network infrastructure and internet connectivity, beating last year’s spending by 107 percent.
The company said majority or about 88 percent of the capex spending went to data network builds to address and elevate customer experience in this challenging time.
Globe added its aggressive network expansion and modernization as well as fiber technology available to more customers nationwide is part of its strategy to make high-speed connectivity accessible for all and usher the Philippines closer to being a digital nation.
Globe reported its net income grew 13 percent to P13 billion in the first semester of 2021 from a year ago, as the decline in non-operating charges and taxes fully covered for the increase in depreciation expenses.
The company’s core net income rose 19 percent to P13.2 billion from P11.1 billion in the same period of 2020. Globe’s core net income excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges.
Its consolidated service revenues six months into 2021 grew 4 percent to P75.5 billion from P72.4 billion reported a year ago, amid the sustained economic challenges the country is facing.
Globe said the main growth driver continues to be data, mostly from Home Broadband, owing to the increase of digital activities among Filipinos. Total data revenues accounted for 79 percent of total service revenues from 76 percent last year. – Myla Iglesias
