Globe Telecom Inc. signed a US$75-million term loan facility with The Bank of Tokyo-Mitsubishi UFJ Ltd (Singapore branch) as lender to finance its 2013 capital expenditures (capex), the telco disclosed yesterday.
The telco has earmarked US$450 million to US$500 million for its ongoing network modernization and transformation program as well as investments in fixed line, international cable facilities, and IT infrastructure.
Globe is in the midst of a US$700- million network modernization program meant to increase its network capacity and resiliency and to accommodate more voice, SMS, and data traffic.
The first phase of the network upgrade is on track with 88% completed in various cell sites all over the country. The telco expects its modernization program will be finished by the end of this year.
Globe is counting on its ongoing network transformation program, coupled with the Bayan Telecommunications Inc. (Bayantel) tender offer and its intention to bid for the 10MHz 3G frequency held by CURE (Connectivity Unlimited Resource Enterprises, Inc.) to boost its 2013 performance.
Earlier, the telco has predicted 2013 to be “a more challenging year” although President and CEO Ernest L. Cu believes that their efforts at brand building and differentiation through customer experience will tide them through “this most critical period as we complete our network and IT modernization.”
For 2012, Globe Telecom reported record consolidated service revenues of P82.7 Billion, 6% above previous year’s level of P77.8 billion, as the mobile and broadband segments delivered service revenues of P67.2 Billion and P 8.7 Billion, respectively, both record highs as well.
The telco’s 2012 core net income rose 2% from P 10.0 billion to P 10.3 billion in the comparative period. However, its consolidated net earnings after tax plummeted 30% from P9.8 billion to P6.9 billion as the company modernized its network and took on the accompanying depreciation charges.