AYALA-LED telecommunications firm Globe Telecom Inc. is partly financing its capital spending program for this year with a term loan from Union Bank of the Philippines (UnionBank).
In a disclosure to the Philippine Stock Exchange on Friday, Globe said it signed a 10-year term loan facility worth P7 billion with Union Bank to “finance the company’s capital expenditures.”
“Globe set a capital expenditure of P35.4 billion for 2016, majority of which would be invested in data-related projects, including LTE for mobile and @Home, capacity and coverage augmentation of 3G and HSPA+, modernization of fixed line data infrastructure and requirements for transmission facilities,” Globe said.
As of end-June, capital spending by the telecom company has already reached P17 billion to support a growing subscriber base and increased appetite for data.
In the first six months of the year, Globe logged an 11 percent increase in its consolidated service revenues to P59.6 billion from P53.8 billion in the same period last year, while its net income after tax rose 3 percent to P8.974 billion.
Globe attributed the earnings growth to strong data-related service revenues across mobile, home broadband and corporate data, despite the heightened competition in the industry.
Incorporated in 1935, Globe is a telecommunications company under the Ayala Group that provides digital wireless communication services nationwide through brands such as Globe Postpaid, Globe Prepaid, Touch Mobile, and Tattoo, as well as offering domestic and international long distance communication services or carrier services.