Globe borrows from Mizuho to fund expansion
Globe Telecom Inc. said it borrowed money from a Japanese bank to partly finance capital expenditures this year.
Globe, a unit of Conglomerate Ayala Corp., said in a disclosure to the Philippine Stock Exchange it signed P6-billion and $20-million seven-year term loans with Mizuho Bank Ltd.
“The loans shall be used to partially finance the company’s capital expenditures and general corporate requirements,” Globe said.
Globe earlier allotted between $850 million and $900 million in capital expenditures yearly until 2019 to further expand its mobile and broadband networks.
Globe spent around P42.5 billion or $844 million in capex last year to support the growing subscriber base and demand for data. The company spend about 82 percent of the budget for the data service needs of customers.
Globe to date has 37,517 base stations, with over 24,700 for 4G3, to support the service requirements of customers.
Globe posted a net income of P15.1 billion in 2017, down 5 percent from P15.9 billion in 2016, after increased investments in data network pushed non-operating costs and depreciation charges higher.
The 2-percent rise in non-operating expenses was largely due to the increase in interest expenses and spectrum amortization related to the acquisition of the telecommunication assets of San Miguel Corp.
Globe’s core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, also declined15 percent to P13.5 billion from P16 billion in 2016, with the full year impact of the San Miguel purchase.
Consolidated revenues amounted to P127.9 billion in 2017, up 6 percent from P120.59 million in 2016.
Globe’s mobile revenues increased 7 percent to P98.5 million from P92.3 million in 2016, driven by the mobile data revenue growth.
Globe at the end of 2017 had 60.69 million subscribers up 2 percent from P59.33 million in 2016.