Now Telecom to spend P2B in capex to build SMS, broadband network

Now Telecom Company Inc. is spending more than P2 billion in capital expenditures over the next two years to establish its network in the national capital region, as the latest telco to offer broadband and text message service.

 

The unit of publicly listed Now Corporation is allotting P1.26 billion implement an all-text GSM network and P900 million for broadband access.

 

The unit of publicly listed Now Corporation intends to finance its capex through share sale and borrowings, and will have a definite approach to fund raising in the next two months, president and CEO Mel Velarde told reporters in a press conference Monday.

 

“We are looking at various options: one is raising shares in the market, and the other one is through borrowing," Velarde said, adding, " We are looking at raising P1 billion or the entire amount immediately."

 

He said the company will borrow 50 percent of the requirement and the other half from equity contributions.

 

Three investment banks already offered to help Now Telecom raise its funding need, Velarde noted, but declined to name the companies in the absence of an agreement.

 

In the fifth year of operations, the company is looking at P1.6 billion in revenues  and P1.1 billion in earnings before interest, taxes, depreciation and amortization from the all-text network, as well as revenues of 8.4 billion and an EBITDA of P3.45 billion for its broadband service. – VS, GMA News