Globe Telecom Signs PhP7 Billion Term Loan with Landbank

Taguig—(PHStocks)—Globe Telecom Inc. (PSE: GLO) signed a 10-year PhP7 billion term loan with Landbank. The loan shall be used to finance the company’s capital expenditures.

Globe set a capital expenditure program of up to $750 million for 2016, majority of which would be invested for 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 registered another record year in 2015, posting its highest full-year consolidated service revenues of PhP113.7 billion, 15% higher than the previous record level of PhP99.0 billion in 2014. Revenues peaked in the fourth quarter, reaching a record high of PhP30.3 billion, up 3% from last quarter and 15% higher than the same quarter in 2014. The sustained revenue trajectory was driven by the solid growth in data consumption across all segments and the consolidation of Bayan Telecommunications, Inc. (“Bayan”) in the second half of the year. The robust subscriber growth for both mobile and broadband, the increasing demand for mobile data and high-speed internet connectivity for consumer and corporate clients, as well as the sustained execution excellence for the various product launches during the year have paved the way for the company’s continued success. Even excluding Bayan’s revenues in the second half of 2015, Globe consolidated service revenues grew to PhP10 billion, up a solid 12% from the same period last year.

Globe spent around PhP32.1 billion in capital expenditures as of end-December 2015 to support the growing subscriber base and its demand for data. Of the total capital expenditures spent, close to half was for the data service needs of its customers.