Globe sets capex with P5-B Bank of Commerce loan

Ayala-backed Globe Telecom has raised P5 billion from a loan agreement with Bank of Commerce. This is to help finance its capital spending for this year.

Aside from that, the fresh funds would also be allotted to debt refinancing and other general corporate requirements.

For 2025, the telecom giant has decided to spend less than the P55 billion it earmarked for capex in 2024.

Globe has been leaning towards a tighter capital spending approach to realize more cash flow.

But the company said the budget for 2025 still “reflects the its continued investments to strengthen and future-proof its network. This is to ensure that it remains responsive to the growing demand for digital services and emerging technologies.”

In the first six months of this year, capital spending was scaled down by 33 percent to P18.9 billion. Of that amount, 91 percent was invested to beef up its digital infrastructure.

Globe earlier reported that its net income in the first half dropped by 14 percent to P12.4 billion from P14.53 billion. Normalized net income, excluding one-off gains, fell 16 percent to P10 billion.

Consolidated gross service revenues also dipped by 2 percent to P80.2 billion from P82.2 billion a year ago.

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Contributions from its mobile business went down to P57.1 billion from P58.4 billion. This, as extreme heat and transport strikes witnessed in the first quarter restricted mobility and limited on-the-go data usage.

Traditional voice and SMS services also continued their “downward trajectory,” with Globe seeing more Filipinos using mobile data.

The number of Globe’s mobile subscribers reached 62.5 million by the end of June.

Globe’s home broadband unit also provided lower contributions at P11.7 billion. This was down 3 percent from P12.1 billion, with more subscribers shifting to fiber from fixed wireless service.