Globe Telecom has recalibrated its capital expenditure (capex) this year and the years forward and has prioritized network efficient investments to fuel future growth and enhance the digital lives of Filipinos.
For this year, Globe bared a full-year capex guidance of $1 billion, lower than the USD1.3 billion it invested in 2023.
These network investments are expected to further drop in 2025 to below USD1 billion by 2025 as part of Globe’s plan to bring its capex to revenue down to the level of its regional peers.
“For 2024, our focus is on optimizing the use of our network to be able to deliver topline growth of low to middle single digits as well as maintain our EBITDA margin at 50 percent for the year,” said Rizza Maniego-Eala, Globe chief finance officer.
“Supported by the delivery of our 2024 guidance, the objective is for us to return to positive free cash flow by 2025,” she added.
Cash capex spending this year will be financed by a combination of internally generated cash, debt financing, as well as proceeds from tower sales seen completed in the first half this year.
Globe invested P70.6 billion as cash capex in 2023, 30 percent lower than the year before. The reduced spending level reflects Globe’s commitment to capital efficiency and network maximization following record-high network investments in prior years.
Globe’s capex-to-revenue ratio has decreased considerably from 64 percent in 2022 to 44 percent in 2023, illustrating its active effort to maximize its network investments and focus on capital efficiency.
Cash capex spending this year is expected to equal 30 to 35 percent of gross service revenue for the year and targeted to be even lower in subsequent years.
Ninety-one percent of the 2023 cash capex spending bolstered the data infrastructure of the company for a better and more meaningful digital experiences for its customers, amid steadily rising demand for data connectivity.
