Globe proposes hike in capital stock to more than P11B
GLOBE Telecom, Inc. announced on Thursday its proposal to increase the company’s authorized capital stock to P11.25 billion from P10.25 billion.
The amount will be divided into 168.93 million common shares with a par value of P50 per share, 160 million voting preferred shares with a par value of P5 per share, and 40 million nonvoting preferred shares with a par value of P50 per share, the company said in a disclosure to the stock exchange.
Without giving details, the company said the move is “for business purposes.”
Globe management expects approval of the company’s board of directors “on or before April 25.”
The company’s annual stockholders’ meeting will be held on April 26, and among the agenda is the approval of the amendments to the articles of incorporation: seventh article — to increase the authorized capital stock.
Globe saw its core net income for 2021 grow by 9% to P21.2 billion from P19.5 billion in 2020.
Its full-year consolidated service revenues grew by 4% to P151.5 billion from the P146.4 billion reported in 2020.
The company attributed its growth to the “sustained outstanding performance of home broadband as well as corporate data.”
It invested P92.8 billion for capital expenditure (capex) projects last year. The total capex for 2021 represented 61% of gross service revenues and 124% of EBITDA, or earnings before interest, taxes, depreciation and amortization, it said in a statement.
About 86% of the capex went to data-related requirements.
Globe’s capex budget for 2022 will be around P89 billion, as it aims to continue expanding and improving its network, with increased funding for the rollout of the fiber network and the 5G (fifth-generation network) service.
Globe Telecom shares closed 0.15% lower at P2,698 apiece on Thursday. — Arjay L. Balinbin
