Globe Telecom Inc. said Wednesday it borrowed P12 billion from three local banks to partially fund its 2023 capital expenditure (capex) and debt refinancing.
The telecom unit of the Ayala Group said it signed term loan facilities with Bank of the Philippine Islands, China Banking Corp. and Robinsons Bank Corp. for P3 billion, P5 billion and P4 billion, respectively.
“The loans shall be used to finance the company’s capital expenditures (capex), debt refinancing and/or general corporate requirements,” Globe said.
Globe invested P54 billion in the first three quarters, down by 27 percent from a year ago.
The reduced capital expenditures are in line with Globe’s focus on capital efficiency and optimization. Bulk of the amount or 91 percent was allocated for the data requirements to ensure that customers will be able to access the best digital solutions and connectivity anytime.
Globe said net income amounted to P19.36 billion from January to September, down from P26.5 billion in the same period last year.
Globe blamed the decline in net profit to the ” increased depreciation expense as well as this period’s non-operating charges versus last year’s non-operating income which included the partial sale of Globe’s data center business.”
Excluding the one-time gain, normalized net income would have been P14.8 billion, or down by 11 percent compared to the previous year.
Globe’s net income also dropped 12 percent in the third quarter to P4.98 billion from P5.7 billion a year ealier.
Core net income, which excludes the impact of non-recurring charges, and foreign exchange and mark-to-market charges, closed at P14.8 billion in the first nine months, down by 8 percent from P16.01 billion in the same period in 2022.
