AYALA-LED Globe Telecom Inc. on Friday said it signed a seven- and 10-year $155 million (P7.9 billion) term loan facility with Metropolitan Bank & Trust Company to finance its capital expenditures (capex) for this year.
In a filing to the Philippine Stock Exchange, Globe said its initial capex of $750 million for 2017 was primarily allotted for the development and expansion of its data facilities across the company’s mobile, broadband and enterprise segments.
The telco giant disclosed that in the first half of the year, it already spent around $550 million from its capex budget to support its data expansion plans.
“Globe management is looking at the possibility of raising said capex guidance by $50 to 100 million to continue addressing the growing demand for quality data services in the country,” the company said.
On August 11, Globe President and Chief Executive Officer Ernest Cu announced the company was looking at the possibility of raising its capex to $800 million from $750 million to invest further in data expansion projects as short messaging service (SMS) weakens.
“If you look at our earnings report…I think we are already tracking more than $500 million spending in the first six months of the year. So there’s really the possibility of raising the capex for this year,” Cu said at the time.
“Everything we do right now is geared towards data. That’s the growing part. As you know, SMS is declining,” he said.
Earlier, Globe reported that its net income for the first half of 2017 fell 10 percent to P8.1 billion from P9 billion in the same period last year, despite a 5 percent rise in revenues to P62.9 billion from last year’s P59.9 billion.
“The robust revenue performance was driven by the strong contribution of data-related products and services whereby the mobile data, home broadband and corporate data business segments delivered solid performances,” Globe earlier explained.