Globe Inks PhP7B Term Loan with Land Bank of the Philippines

Globe Telecom Inc. (PSE: GLO) signed a 7-year PhP7 billion term loan facility with Land Bank of the Philippines (LBP). The loan shall be used to finance the company’s capital expenditures.

Globe’s revised capital expenditure guidance for 2017 is $850 million, of which majority will be invested in data-related projects. As of end-September 2017, the company spent approximately PhP36.8 billion or $731 million in capital expenditures wherein 84% is data-related, in line with efforts to improve data network capacity and coverage. This exemplifies the company’s continuous commitment to support the data needs of Globe customers and allow them to enjoy the digital lifestyle.

On a consolidated basis, Globe ended the first nine months of 2017 with a record-level gross service revenues of PhP95.1 billion, 6% higher than the PhP89.5 billion reported a year ago. The solid revenue performance was due to the sustained growth of data-related products and services. EBITDA also hit a new record high at PhP40.6 billion, up a robust 8% from the PhP37.5 billion from a year ago, with EBITDA margin at 43%, up from the 42% reported in 2016. While net income reached close to PhP13 billion, up 11% from the PhP11.7 billion reported in the same period last year.