• Globe eyes local loans for $800-M capex in 2016

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    GLOBE Telecom’s (Globe) estimated capital expenditure (capex) for 2016 will be in the neighborhood of $800 million (P37.7 billion) and will likely be funded by local loans, a ranking executive of the Ayala-led telecommunications company said.

    Globe chief financial officer Albert de Larrazabal told reporters on the sidelines of the launch of Globe and Cherry Mobile’s joint venture that next year’s capex may be close to this year’s $850 million.

    “We see that capex may be at least equivalent to the $800 million again, but we are still working on the budget and the programs. It is not firm yet,” De Larrazabal said.
    De Larrazabal added that next year’s capex will most likely be funded by local loans.

    “We will most likely go to the debt market. If you look at our balance sheet, it is quite low . . . it is under 1.2 debt-to-equity [ratio]so we’ll just borrow instead,” he said.

    De Larrazabal said that Globe intends to spend a significant percentage of next year’s capex on data. He also said Globe will still continue to invest in improving its core business, which is voice calls and SMS.

    “I think when you look at it, the bulk will be data. More than half will be data. We continue to invest in our core—voice and SMS–but really, we will go into additional capacity to improve the quality or continue it to stay good,” De Larrazabal said.

    On Wednesday, Globe and Cherry Mobile launched their joint venture, Cherry Prepaid, a phone and SIM bundle powered by Globe.

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