Globe inks P20-B loan deal with BDO

GLOBE Telecom signed a P20-billion term loan facility with BDO Unibank Inc. on Thursday to partly finance its capital expenditures (capex) and debt refinancing.

“The loan shall be used to finance the company’s capital expenditures (capex), debt refinancing and/or general corporate requirements,” Globe said in a statement.

As of September, the Ayala-led telco said it had invested P54 billion in capex for network expansion and enhancement, down 27 percent compared to the same period last year.

This was in line with Globe’s reinforced guidance of capex dropping to $1.3 billion (approximately P72.05 billion) for the full year.

The company said the majority of the capex spend, or 91 percent, was allocated for its data requirements to ensure that customers would be able to access the best digital solutions and connectivity anytime.

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Last month, Globe also signed term loan facilities with the Bank of the Philippine Islands, China Banking Corp. and Robinsons Bank Corp. for P3 billion, P5 billion and P4 billion, respectively.

Globe earlier reported a net income of P19.36 billion in the January to September period, down from P26.5 billion in the same period last year.

The company blamed the decline in net profit on “increased depreciation expense as well as this period’s non-operating charges versus last year’s non-operating income, which included the partial sale of Globe’s data center business.”

Excluding the one-time gain, normalized net income would have been P14.8 billion, or down by 11 percent compared to the previous year.

In the third quarter alone, Globe’s net income also dropped by 12 percent to P4.98 billion from P5.7 billion last year.

Core net income, which excludes the impact of non-recurring charges and foreign exchange and mark-to-market charges, stood at P14.8 billion in the first nine months of the year, down by 8 percent from P16.01 billion in the same period last year.

Globe’s share price rose by 0.64 percent or P11 on Thursday to P1,729 amid a 1.13-percent drop for the benchmark Philippine Stock Exchange index.

Philippine financial markets were closed on Friday for a holiday.