Globe Telecom gets P5-b DBP loan to finance ‘20 investments

Globe Telecom Inc. borrowed P5 billon from the Development Bank of the Philippines to fund capital expenditures next year and refinance debt.

The company, a unit of conglomerate Ayala Corp., said Tuesday it would use proceeds from the P5-billion term loan facility finance capital expenditures and general corporate requirements, and refinancing of maturing obligations.

With Globe’s commitment to improve the state of internet in the Philippines, the company remains on track to invest P63 billion in 2019, largely for data-related capital expenditures that will enhance network data capacities and capabilities.

“This is in line with its capex guidance provided earlier in the year and is consistent with its push to ramp up investment spend in support of the Filipino’s shift to the digital lifestyle,” Globe said.

“This continued shift to the digital led to mobile data traffic in our network reaching 1,200 petabytes for the first nine months of 2019, which already exceeds full year usage in 2018,” it added.

Globe earlier reported a 20-percent growth in net income in the first nine months  to P17.7 billion from P14.7 billion in the same period last year.

Core net income also climbed 20 percent to P17.9 billion as gross service revenues rose 13 percent to P110.6 billion.

The company registered total mobile revenues of P83 billion in the nine-month period, up 13 percent from P73.7 billion year-on-year.

Mobile data business contributed P52.2 billion, while mobile voice and mobile SMS revenues added P18.5 billion. Globe’s mobile subscriber base reached 97.4 million as of the third quarter, up 5 percent from the previous quarter.

Globe’s home broadband revenues grew 19 percent year-on-year to P16.1 billion, powered by the 40-percent subscriber expansion in fixed wireless solutions.

Topics: Globe Telecom , Development Bank of the Philippines , Ayala Corp , Telecom
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