Globe’s ¥20-B loan positions company for 5G growth, BMI says

GLOBE Telecom, Inc.’s ¥20-billion loan signals the telecommunications company’s improved debt servicing capacity and positions it to capture growth in 5G, according to a study by BMI, a unit of Fitch Solutions.

“The loan provides liquidity to manage debt maturities while maintaining financial flexibility during this operational transition,” BMI said in a report dated Dec. 3.

Last month, Globe announced that it had signed a ¥20-billion (around P7.6 billion) term loan facility with Mizuho Bank, Ltd., a major Japanese commercial bank, to partially finance its capital expenditures (capex), debt refinancing, and other corporate requirements for the year.

BMI said Globe is well-positioned to capture the expected growth in 5G adoption in the Philippines, noting that the company’s loan with Mizuho Bank reflects its transition from infrastructure deployment to revenue generation after its investments in 5G technology.

For the three months ending September 2025, Globe reported a 12.79% drop in attributable net income to P5.25 billion from P6.02 billion a year ago, on slightly lower revenues of P44.36 billion, down 1.68% from P45.12 billion.

For the January-to-September period, attributable net income fell 14.04% to P17.69 billion, while revenues declined 2.34% to P131.59 billion.

Globe said it had invested about P31.4 billion in capital expenditure for the first nine months of 2025, down 23% from P41 billion in the same period last year.

The company expects full-year 2025 capex to fall below $1 billion, reflecting a strategic shift toward targeted investments and reinvestment of proceeds from tower sales for the remainder of the year.

Earlier this year, Globe also signed P20 billion in loan facilities with local banks BDO Unibank, Inc. and Metropolitan Bank & Trust Co. to fund its 2025 capex and reduce debt.

“As the company monetizes infrastructure assets including towers and potentially fiber networks, debt financing becomes less critical for core operations,” BMI said.

The study also highlighted Globe’s initiatives to diversify into financial technology and digital services through its e-wallet platform GCash, noting that this positions the company to grow average revenue per user (ARPU) through revenue streams beyond traditional connectivity.

BMI added that Globe could benefit from the Konektadong Pinoy Act, leveraging its mobile network infrastructure, spectrum holdings, and integrated mobile-fixed offerings to provide services in urban consumer markets.

“The primary risks are enterprise segment pricing pressure and potential rural broadband market share loss, where Globe’s infrastructure deployment remains limited compared to urban coverage,” BMI said.

At the stock exchange on Thursday, shares in Globe fell by P9, or 0.56%, to close at P1,600 apiece. — Ashley Erika O. Jose