Globe Telecom Inc. on Friday reported taking out a P22 billion loan from local banks to finance network upgrades and to restructure existing debt.
The Ayala-led telco said it signed term loan agreements with China Banking Corporation, Land Bank of the Philippines and the 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, debt refinancing and/or general corporate requirements,” Globe said. The telecommunications company has invested P28.3 billion as capex as at end-June this year, lower by 25 percent compared to the same period in 2023.
This reduced capex spending aligns with the company’s strategy optimizing capital allocation to achieve positive free cash flows by 2025.
Approximately 91 percent of this amount was allocated for data infrastructure to ensure customers have uninterrupted access to crucial digital services and entertainment options, regardless of time or location.
Globe continues to spearhead efforts in bridging the digital divide by bringing connectivity to remote areas across the country, with its network now reaching over 500 geographically isolated and disadvantaged areas.
By helping improve the country’s digital infrastructure, Globe connects remote communities, enabling residents to access vital online services, educational resources, and economic opportunities.
Globe earlier reported net income of P14.5 billion in the first half this year, a one-percent increase compared to 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, Globe’s core net income went up 18 percent to P11.7 billion. This figure would have been higher at 21 percent had ECPay been separated from Globe’s financial results the past year.
The telco reported P82.2 billion consolidated gross service revenue during the period, up 2 percent from a year ago, despite the decline in home broadband and non-telco services.
