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Thursday, February 22, 2024

Globe secures P20-b BDO loan to support capex, debt refinancing

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Globe Telecom Inc. said Friday said it signed a term loan facility with BDO Unibank Inc. for P20 billion.

“The loan shall be used to finance the company’s capital expenditures [capex], debt refinancing and/or general corporate requirements,” Globe said.

The telecom unit of the Ayala Group said it invested P54 billion in capex for network expansion and enhancement as of September, down by 27 percent from the same period in 2022.

This was in line with Globe’s reinforced guidance of capex dropping to $1.3 billion for the full year.

Globe said it allocated the majority of the capex or 91 percent for data requirements to ensure that customers are able to access the best digital solutions and connectivity anytime.

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It also 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 last month, respectively.

Globe earlier reported a net income of 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 this 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 by 12 percent in the third quarter to P4.98 billion from P5.7 billion last year.

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 of the year, down by 8 percent from P16.01 billion a year earlier.

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