Globe Inks PhP5B and $45M Term Loan with Metrobank

Taguig—(PHStocks)—Globe Telecom Inc. (PSE: GLO) signed a 10-year PhP5 billion and 7-year $45 million term loan with Metrobank. The loans shall be used to finance Globe’s capital expenditures.

“This new loan facility from Metrobank will help us address the demands of our customers in their continuing shift to a digital lifestyle. Globe is committed to invest in additional network capacities to handle the robust growth in data traffic from our customers,” said Alberto Larrazabal, Globe Chief Finance Officer.

Globe invested about PhP11.4 billion in capital expenditure in the first half of 2015. Bulk of the investment was allocated for data-related projects, including investments for the company’s broadband network, capacities for wireless data, LTE, and domestic and international transmission facilities.

Globe Telecom closed the first half of 2015 with record-level consolidated service revenues of PhP53.8 billion, 13% higher than the PhP47.7 billion reported a year ago, on the strength of robust revenue gains on mobile data and broadband, as more customers adopt a digital lifestyle. The sustained growth trend was spurred by the strong subscriber growth for both mobile and broadband, the increasing use of smartphones and other data-enabled devices, and the introduction of new products and services geared towards providing Globe subscribers easy, affordable, and hassle-free internet access and quality entertainment content. On a sequential basis, Globe posted its highest ever consolidated service revenues of PhP27.6 billion for the second quarter of the year, outpacing both the record-level revenues in the seasonally strong fourth quarter of 2014 of PhP26.3 billion and last quarter’s PhP26.2 billion by 5%.