Globe streamlines cash capex spending in 2024

FOR 2024, Globe aims to further lower its cash capital expenditure (capex) spend, setting it at US$1 billion, lower than $1.3 billion invested in 2023.

These network investments are expected to further drop by 2025, decreasing to below US$1 billion as part of Globe’s broader strategy to bring capex-to-revenue down to the level of its regional peers.

The company invested a total of P70.6 billion in cash capex for 2023, 30 percent lower than the previous year.

Globe’s capex-to-revenue ratio has decreased considerably to 44 percent in 2023 from 64 percent in 2022, illustrating its active effort to maximize its network investments and focus on capital efficiency.

Cash capex spending in 2024 is expected to equate to approximately 30 to 35 percent of total gross service revenues for the year, and is targeted to be even lower in the subsequent year.

A total of 91 percent of the 2023 cash capex spending was dedicated to bolstering the data infrastructure of the company to provide better and more meaningful digital experiences for its customers, amid steadily rising demand for data connectivity.