The Market Monitor Minding the Nation's Business
Globe Telecom has built up a P14 billion warchest to beef up its effort to speed up and widen its Internet business after acquiring bandwidth assets of San Miguel Corp. in the costly P70 billion purchase deal in a team up with Philippine Long Distance Telephone Co. (PLDT).
Globe recently signed an eight-year P7-billion term loan facility with BDO Unibank for its capital expenditures and general corporate requirements.
It also signed a six-year P7 billion term loan facility with the Development Bank of the Philippines (DBP).
The company will spend capital expenditures of around $750 million or P37.5 billion, mostly to be invested in data-related projects for deployment of LTE Mobile and LTE@Home, increased network capacities and coverage, modernization of fixed line data infrastructure for corporates and requirements for transmission facilities.
As of end December 2016, Globe had spent P36.7 billion in capital expenditures wherein 65 percent were spent for data related requirements.
It closed the year with all-time high consolidated service revenues of close to P120 billion, increasing by 6 percent from its previous record level of P113.7 billion in 2015 driven by its robust subscriber growth for both mobile and broadband and high demand for its data-related products across all market segments.
This was also supported by sustained execution excellence for various product launches as Globe further enhance its capacity and coverage to further improve the state of Internet in the country.
RIZA LOZADA