Globe Telecom seals USD310m term loan from Philippine National Bank

11 Mar 2015

The Philippines’ second largest telecommunications company by subscribers, Globe Telecom, has inked a seven-year PHP7 billion (USD310 million) loan with the Philippine National Bank (PNB). The monies will be used to fund the operator’s CAPEX and corporate financing needs for 2015, Globe said, as it looks to invest in new technology, business support systems and product innovations this year to keep pace in the domestic fixed and mobile market. With a focus on meeting pent up demand for data and internet access in the country, Globe is committing around PHP28.7 billion on capital expenditure projects in FY 2015, of which three-quarters are set aside for data-related projects.

As reported by TeleGeography’s CommsUpdate, Globe Telecom reported a 25% year-on-year increase in core net income to a record PHP14.50 billion in FY 2014, fuelled by continued growth at its mobile, broadband and fixed line data businesses. In what the operator’s president and chief executive officer Ernest Cu described as a ‘banner year’ for Globe, the carrier booked its ‘best-ever consolidated service revenues, EBITDA, net income and core net income, despite intensifying competition’. Globe recorded service revenue of PHP99.0 billion last year, a 9% increase from PHP90.50 billion in 2013, with service revenue hitting a new quarterly ‘high’ of PHP26.3 billion in Q4 2014 on the back of sustained popularity of its mobile internet, broadband and other fixed line data products. Net profit, meanwhile, soared 170% to a record PHP13.37 billion, from PHP4.96 billion in FY 2013 – despite a 23% quarter-on-quarter decline in net income in 4Q14 to PHP2.84 billion. Mobile sales climbed 7% on an annualised basis in 2014, to PHP78.1 billion, as subscriber numbers surged by 14% to 44.04 million. Globe’s boss said: ‘Reaping the benefits of our modernised network, with 100% 3G and 4G coverage, we have seen a steady and healthy growth in both our mobile and broadband businesses, surpassing all of our expectations, and we are confident in sustaining this momentum moving forward.’

Philippines, Globe Telecom (incl. Innove)