Globe Telecom Inc. has obtained a ₱10-billion credit facility from the state-run Land Bank of the Philippines (Landbank) to fund the ongoing expansion of its cellular and data network.
According to a regulatory filing on July 15, the telecom giant intends to use the loan to partially support its capital expenditures (capex), with the remaining balance designated for general corporate purposes and debt refinancing.
Even with this new influx of capital, Globe emphasized that it is sticking to its goal of capping its total capital investments below $1 billion this year, reflecting a shift toward a more disciplined spending strategy.
During the first quarter of the year, the service provider utilized ₱12.7 billion for capex, which represents an increase of over 50 percent compared to the ₱8.46 billion spent during the initial quarter of the prior year.
More than 91 percent of that capital was funneled directly into data infrastructure to accommodate rising consumer demand and fortify its digital services.
“Capex accounted for 30% of service revenues during the period, supporting Globe’s objective of strengthening its network while sustaining a healthy free cash flow profile and prudent financial position,” the company said.
By the end of March, the network provider had deployed 408 new fifth-generation (5G) cell sites, pushing its coverage to over 98 percent of Metro Manila, alongside strategic urban areas across the Visayas and Mindanao.
This more conservative investment approach follows a dip in the company’s recent profitability amid challenging macroeconomic conditions. Globe experienced a 20-percent reduction in its first-quarter net income, which slid to ₱5.55 billion from ₱6.98 billion in the same timeframe last year.
Conversely, overall revenues saw a four percent uptick, reaching ₱45.71 billion, largely propelled by the steady uptake of mobile data.
Mobile data remains the company’s primary financial engine, generating 89 percent of all mobile earnings—up from 85 percent the previous year—backed by an active user base of over 39 million mobile data subscribers.