Globe secures funding for capex
GLOBE Telecom, Inc. secured fresh funding to finance capital expenditures this year, majority of which will be allocated for the expansion of its data network.
The Ayala-led telecommunications company told the stock exchange on Friday that it signed a 10-year P8-billion term loan facility with BDO Unibank, Inc.
The debt will help Globe fund its $750-million capital expenditure program for the year that will finance data-related expenses, including deployment of LTE mobile, LTE @Home, increased network capacities and coverage, and modernization of fixed line data infrastructure for corporates, and transmission facilities.
The proposed capex is lower than the $772 million spent last year, but Globe has pledged to expand its network to maintain its growth trajectory amid an increasingly competitive market environment.
Globe is deploying around 1,800 LTE 700 sites and 1,000 LTE 2600 sites this year. It will also add 1,800 LTE 1800 sites “in order to boost LTE capacity and coverage.”
The company’s net income slid 4% to P15.88 billion in 2016 from the P16.484 billion recorded in 2015, amid a general slowdown in traditional legacy business and non-operating charges related to its acquisition of San Miguel Corp.’s telecommunications assets.
Core net income, which excludes foreign exchange, mark-to-market gains and losses, and non-recurring items, rose to P16.014 billion for 2016, from P15.126 billion in the previous year, as consolidated service revenues reached an all-time high.
Shares in Globe added P25 or 1.25% to end at P2,020 apiece on Friday. -- Krista Angela M. Montealegre