Globe Telecom Inc. has signed a seven-year, P 7-billion term loan with the Philippine National Bank, the proceeds of which will be used to finance the telecom company’s capital expenditures (capex) and general corporate requirements for 2015.
According to a recent disclosure, the capex for 2015 would be approximately $650 million, of which 75 percent would be for data-related projects because of growing demand for data and internet connectivity.
These include investments for its Tattoo LTE mobile and Tattoo Home Broadband, particularly broadband DSL augmentation, mobile and wireless broadband capacities and coverage rollout for 3G, HSPA+ and DSL network, as well as capacity upgrades for transmission, international cable facilities and its core network.
The company said the balance of the capex would be spent for investments in new platforms and business support systems in line with product innovations, store deployment and other corporate requirements.
Globe’s 2014 consolidated service revenues reached a new high of P99 billion, besting the previous mark of P90.5-billion in 2013.
The company’s core net profit also reached a record level of P14.5 billion, which was 25 percent higher than the previous year, driven by the solid performance of its business segments amid sustained demand for data connectivity across the mobile, broadband and fixed line data businesses.