MANILA, Philippines - Globe Telecom Inc. is borrowing P7 billion from the Development Bank of the Philippines (DBP) to fund capital expenditures and other corporate needs.
In a disclosure to the Philippine Stock Exchange yesterday, Globe said it signed a six-year term loan facility worth P7 billion with DBP.
“The loan shall be used to finance the company’s capital expenditures and general corporate requirements,” the Ayala-led telco said.
Earlier this year, Globe announced it signed an eight-year term loan facility worth P7 billion with BDO Unibank Inc. intended to fund this year’s capital expenditures.
Globe has set its capital expenditures at $750 million this year.
The bulk of this year’s capex is intended to be spent for data-related projects including the deployment of LTE (long term evolution) for mobile and for the home, modernization of fixed-line data infrastructure for corporates, as well as requirements for transmission facilities.
Globe spent P36.7 billion or $772 million worth of capex last year.
A big portion or 65 percent of last year’s capex went to data-related requirements.
Globe’s core net income hit a record P16.01 billion last year, amid all-time high revenues.
Core net income which excludes the impact of non-recurring charges, foreign exchange and mark-to-market changes, grew six percent from P15.13 billion in 2015.
Globe’s consolidated service revenue reached P120 billion last year, six percent higher than the P113.68 billion achieved in 2015.
Even as competition increased in the second-half of last year, the telco achieved record-high revenue due to growth in data-related products across all segments.
Earlier, Globe president and CEO Ernest Cu said he expects the company to maintain its growth trajectory this year as it continues to invest in the network.
He also said revenues are seen to post mid-single digit growth this year.