Globe Telecom inked a $100 million loan from the Bank of China (Hong Kong) Ltd., the company announced on Monday (May 17).
According to a statement released by the telco to the stock exchange, “the loan will be used to fund the telco’s capital expenditures” for 2021.
The telecom firm is planning to spend a total of P70 billion to make improvements to capital assets. And as of May, it has already spent P19.1 billion on its upgrade scheme, which exceeds last year’s spendings by 79 percent.
Globe said the bulk of the capital – about 91 percent – will be allotted to data-related requirements. This will mean the creation of new cell sites, the deployment of new fiber optic cables, and the transformation of existing towers to support 4G.
These are all necessary steps “to support the fast-growing data usage and provide superior data customer experience,” Globe noted.
In the first quarter of the year, Globe recorded an 11 percent increase in its attributable net income, which reached P7.31 billion. The income growth has been credited to tax cuts imposed under the newly-enacted Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.
Apart from this, its total revenue for the first quarter jumped by 4 percent to P42.85 billion compared to last year’s P41.19 billion – in the same period.
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Image credit: Globe Telecom’s Official Facebook Page