Globe inks P5 billion Landbank loan

MANILA, Philippines — Globe Telecom Inc. has signed a P5-billion loan facility with the Land Bank of the Philippines to fund its capital spending.

“The loan shall be used to finance the company’s general financing and corporate requirements for capital expenditures,” the Ayala-led telco said in a stock exchange filing yesterday.

Globe originally set a capex guidance of P63 billion this year, but revised it to P50.3 billion given the impact on its operations of the COVID-19 pandemic.

The company said it remains on track to meet its full-year capex guidance with its continued focus on increasing capacity and upgrades nationwide for better internet experience for customers.

As of end-September, Globe spent P33.4 billion for capital expenditures, 81 percent of which was invested on data-related requirements.

“This investment has benefitted Globe’s customers as evidenced in the latest global report of Opensignal naming Globe as one of the most improved telecommunication companies in the world in terms of video experience,” the company said.

Based on third quarter data from global internet testing and analysis firm Ookla, Globe said it has the most consistent 4G network in 13 out of 17 regions in the country.

These regions include Bicol, Cagayan Valley, Calabarzon, Caraga, Central Luzon, Central Visayas, Cordillera Administrative Region, Eastern Visayas, Ilocos Region, MIMAROPA, Northern Mindanao, Region 12, and the Zamboanga Peninsula.

Globe said Ookla’s quarterly data showed that in terms of mobile consistency score, it is now enjoying up to 64 percent consistency in these high population density areas, nearing the global benchmark of 70 percent consistency score.

The firm posted a 10-percent drop in its net income to P15.9 billion in the nine months ending September, while core net income, which excludes the impact of non-recurring charges, foreign exchange and mark-to-market charges, fell 13 percent year-on-year to P15.6 billion.

The telco’s consolidated service revenues dipped one percent year-on-year to P109.1 billion, with the robust performance from its home broadband offsetting the drop in revenues registered by mobile, corporate data, and fixed-line voice.