AYALA-LED Globe Telecom, Inc. has secured P7 billion in new financing to fund its capital expenditures (capex) and other corporate requirements.
In a disclosure on Tuesday, the telco said it inked term loan facilities amounting to P6 billion and $20 million (P1.04 billion) with Mizuho Bank, Ltd.
The company has spent P42.5 billion in capex last year, which was mainly used to support its growing subscriber base and the demand for data.
For this year, Globe has set its capex at $850 million (P43.7 billion) which will be used mainly to improve data services in the country.
Ernest Cu, Globe president and chief executive officer, said the company was eager “to expand its data network and address the surge in customer demand for on-demand video content.”
“Majority of the company’s capex for 2018 is geared to meet customer demand for more bandwidth-intensive content, which, in turn, will support the revenue momentum of our data-related services,” he added.
Globe said its net income last year dipped 15 percent to P13.5 billion from the P16 billion recorded in 2016 due to the “full year impact of the SMC (San Miguel Corp.) telco asset acquisition.”
Consolidated service revenues in 2017 went up 6 percent to P127.9 billion driven by its mobile and home broadband businesses.
Mobile revenues rose 7 percent to P98.5 billion on sustained demand for mobile data, while the home broadband business saw revenues grow 7 percent to P15.6 billion as its subscriber base increased by 15 percent to 1.3 million.
Meanwhile, revenue from its corporate data business increased 4 percent to P10.3 billion.