Globe Telecom said it is looking to raise between $300 million and $350 million (P13.2 billion to P15.4 billion) this year to finance its capital expenditure (capex) program. The fundraising will be done in two tranches.
Albert de Larazabal, chief financial officer of Globe said the first tranche will be done within the first half of the year. “We will see the pace of capex spending then maybe the second tranche will be done by the second half”, he said.
Globe is investing heavily in its network modernization program to expand network capacity.
Larazabal said “we will try to figure out what is the most cost-effective.”
“There is a lot of appetite for direct lending and the capital markets continue to be very vibrant. Just look at the deposits at the central bank to understand how much liquidity there is in the market. There is no clear decision at this point in time on which instrument to use,” he added.
Globe reported on Thursday that it has programmed a capital spending of $850 million this year.
Globe completed its $700 million network modernization initiative to deliver what it described as the most advanced network infrastructure in the country, putting in a brand-new access, transport, and core network nationwide.
Globe said that as part of the initiative, the company also completed a nationwide rollout of its 4G network using the HSPA+ technology. HSPA+ refers to Evolved High-Speed Packet Access, a technical standard for wireless, broadband telecommunication.
Globe said that as part of these efforts, just one week after its establishment, HOOQ, Asia’s video-on-demand service, announced that it will kick off in the Philippines from late February in partnership with Globe.
HOOQ, a start-up joint venture between Singtel, Sony Pictures Television and Warner Bros. Entertainment, will enable customers of Globe to enjoy unlimited online streaming access and an offline viewing option to top Hollywood and Filipino movie and television content, via any device including computers, smartphones and tablets.
Globe also said that Filipinos can look forward to more than 10,000 movies and television episodes and TV shows, including titles from partners Sony and Warner Bros.
Customers can watch Hollywood movies such as “Harry Potter”, “Spider-Man” and “Inception”, while enjoying popular TV series such as “Gossip Girl”, “Friends” and “Smallville”.
Local film and TV content will also be available through partnerships with the country’s top studios such as GMA Network Inc., Viva Communications, Regal Entertainment, and ABS-CBN Broadcast Corp.
Globe reported that its net profit in 2014 grew by 170 percent to a record P13.4 billion, driven by the solid performance of its mobile, broadband, and fixed-line data businesses.
Total mobile subscriber base stood at 44 million as of end-December 2014, up by a solid 14 percent from the 38.5 million a year earlier.
Globe ended the year with nearly 2.8 million broadband subscribers, with strong growth seen across fixed broadband, wireless broadband and long-term evolution (LTE) solutions of 16 percent, 42 percent and 377 percent, respectively.