Globe Telecom Inc. said Friday it secured a P22-billion loan from three local banks to finance network upgrades and restructure debt.
The telecom arm of the Ayala Group said it signed term loan facilities with China Banking Corp., Land Bank of the Philippines and Metropolitan Bank & Trust Company for P10 billion, P5 billion and P7 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 P28.3 billion for capital expenditures as of end-June this year, down by 25 percent from the same period in 2023.
The reduced capex aligns with the company’s strategy to optimize capital allocation and achieve positive free cash flows by 2025.
It said it allocated about 91 percent of the amount for data infrastructure to guarantee that customers have uninterrupted access to crucial digital services and entertainment options, regardless of time or location.
Globe said it continues to spearhead efforts to bridge the digital divide by bringing connectivity to remote areas across the country, with its network now reaching over 500 geographically-isolated and disadvantaged areas (GIDAs).
The company said that by helping improve the country’s digital infrastructure, it connects remote communities, enabling residents to access vital online services, educational resources, and economic opportunities.
Globe reported a net income of P14.5 billion in the first half of 2024, a 1-percent increase from the same period last year.
Excluding a one-time gain from tower sales, normalized net income surged 19 percent to P11.9 billion in the first half compared to the same period last year.
Excluding non-recurring items, foreign exchange fluctuations and mark-to-market adjustments, core net income also went up by 18 percent to P11.7 billion.
Globe said this figure would have been even higher, at 21-percent growth if ECPay had been separated from Globe’s financial results in the previous year.
