Globe Telecom lnc. has secured a P7-billion loan package from Union Bank of the Philippines to partly finance the company’s capital outlay this year, a disclosure to the stock exchange showed.
The loan, according to the document, has a 10-year term. Other details were not readily available.
“The loan shall be used to finance the company’s capital expenditures,” the regulatory filing said.
Globe is poised to spend as much as P35.4 billion in 2016, the “majority of which would be invested in data-related projects, including LTE for mobile and at home, capacity and coverage augmentation of 3G and HSPA+, modernization of fixed-line data infrastructure, and requirements for transmission facilities.”
As of end-June, the company has spent P17 billion, mostly used to support its growing subscriber base in
mobile phones.
Globe profits increased by 3 percent in the first six months of the year, thanks to its growing mobile, corporate, broadband and fixed-line businesses.
In the first six months this year, the company booked a net income of P9 billion, a 3-percent increase from P8.7 billion the year prior.
In the same comparative period, Globe’s consolidated service revenues rose by 11 percent to P59.6 billion from P53.8 billion, while operating expenses and subsidy grew by only 9 percent to P33.97 billion from P31.12 billion.
Core net income—which does not take into account one-time gains and losses—was at P8.8 billion, a 2-percent hike versus last year.
Except for mobile, all of Globe’s businesses posted double-digit growth. Still, mobile took the lion’s share of the pie at P45.74 billion, followed by home broadband at P7.03 billion (a 49-percent surge), corporate data at P4.86 billion (a 55-percent hike), and fixed line voice at P1.9 billion (a 29-percent increase).