Globe announced a capital expenditure (CAPEX) budget of approximately US$1.3 billion this year, a reduction of over 30% from the 2022 record CAPEX spending as the company shifts focus to capital efficiency and optimization.
Globe has spent record-high levels of CAPEX in the past several years, as it took advantage of different opportunities to fast-track its network expansion and customer experience enhancements. As it moves to 2023, on the back of those significant investments, the focus of Globe shifts to ensuring the sustainability of its free cash flow generation.
Globe aims to further drop its CAPEX spending to US$1 billion by 2024 as part of its efforts to optimize the existing infrastructure and refocus capital deployment. These efficiency efforts will be done “without sacrificing customer experience and revenue opportunities,” said Globe Chief Finance Officer Rizza Maniego-Eala.
“We are proud to have spent record-high levels of CAPEX in the past few years towards our network expansion and enhancement, which has allowed us to provide our customers with a first-world connectivity experience. At the same time, we recognize the importance of a healthy balance sheet and sustainable operations. As such, we are shifting our focus into strengthening our free cash flow position,” Eala said.
Globe’s commitment to providing its customers with a world-class internet experience is evident in its high CAPEX spending in 2022, which closed at ₱101.4 billion, 9% above the previous year. The majority or 86% of the investment was allocated for data requirements, ensuring that Globe customers have access to the best digital solutions and connectivity wherever they are.
The company’s strict and clear governance processes have ensured proper capital deployment over the years. The reduction of CAPEX spending in 2023 is proof of Globe’s commitment to responsible financial management.
Despite the reduced CAPEX, Globe will continue to provide its customers with the best digital solutions and connectivity through its extensive network backbone.