Globe proposes a share capital increase to more than P11B

GLOBE Telecom, Inc. on Thursday announced its proposal to increase the company’s authorized share capital to 11.25 billion pesos from 10.25 billion pesos.

The amount will be divided into 168.93 million ordinary shares with a nominal value of 50 pesos per share, 160 million preferred shares with voting rights with a nominal value of 5 pesos per share and 40 million shares non-voting preferred shares with a par value of 50 pesos per share, the company said in a statement to the stock exchange.

Without giving details, the company said the move was “for business purposes.”

Globe management expects approval from the company’s board “no later than April 25.”

The company’s annual meeting of shareholders will be held on April 26 and the agenda includes the approval of amendments to the articles of association: seventh article — to increase the authorized share capital.

Globe saw its basic net income for 2021 increase by 9% to reach 21.2 billion pesos, compared to 19.5 billion pesos in 2020.

Its consolidated full-year service revenue increased 4% to 151.5 billion pesos from 146.4 billion pesos reported in 2020.

The company attributed its growth to “outstanding and sustained performance of home broadband as well as enterprise data.”

It invested P92.8 billion for capital expenditure (capex) projects last year. Total capital expenditure for 2021 was 61% of gross service revenue and 124% of EBITDA, or earnings before interest, taxes, depreciation and amortization, it said in a statement.

Approximately 86% of capital expenditures were devoted to data requirements.

Globe’s investment budget for 2022 will be around 89 billion pesos, as it aims to continue expanding and improving its network, with increased funding for the deployment of the fiber network and 5G service (network fifth generation).

Globe Telecom shares closed down 0.15% at P2,698 apiece on Thursday. — Arjay L. Balinbin

Sallie R. Loera