Globe Telecom preparing P32-b stock rights offering

GLOBE Telecom Inc. said Monday it will raise P32 billion from a stock rights offering to expand its mobile and broadband network and repay debt.

“This marks the first time Globe will do a rights offer in the capital market in over two decades and shows the principal shareholders’ confidence in the company and its plans going forward,” said Globe chief finance officer Rizza Maniego-Eala.

“We believe there is excitement in the market for Globe’s future prospects and potential amid the massive demand for data-related services as more Filipinos are now embracing the benefits of digitalization,” she said.

Maniego-Eala said the company’s capital raising program would also provide flexibility to properly compete in the telecom sector as it aims to continue delivering quality services to millions of customers and keep its leadership position.

The proposed stock rights offer will enable the company to further expand its digital ecosystem and differentiate itself in the market, as it capitalizes on opportunities in and beyond telco, she said.

Globe saw its data traffic in its network grow significantly, reporting a 27-percent increase in the first quarter from the same period last year.

The company said the growth was buoyed by the increased smartphone penetration in the network, which grew from 81 percent in 2020 to 85 percent in 2021 and led to an increase in per person data usage of 22 percent.

It said that to support the fast-growing demand, the company continuously invests in its network, spending close to P250 billion in capital over the last four years and committing to spend another P89 billion in 2022.

Globe said to capitalize on the data trend, it also invested in businesses adjacent to the telco sector like its fintech platform, GCash, which reached 60 million registered users in March 2022 and remained the fintech leader in the country.

Globe reported a net income of P13.7 billion in the first quarter, up 86 percent from P7.3 billion a year ago.

Core net income, which excludes the impact of non-recurring charges and foreign exchange and mark-to-market charges, reached P5.1 billion in the quarter, down from P7.4 billion last year.

Consolidated service revenue amounted to P39.2 billion, up 4 percent from P37.8 billion a year earlier.

Globe earlier formed a new company called AdSpark Holdings Inc. to consolidate initiatives around its adtech and data capabilities. It will be part of the 917Ventures’ portfolio of industries.

Comprising the holding company are digital and mobile marketing solutions provider AdSpark Inc., multi-channel messaging platform M 360, intelligencepowered solutions provider iNQUiRO and adtech startup Deep Sea. The initial portfolio forms a strong base foundation where the Globe Group’s digital advertising and data business can further thrive and scale.