Globe Maintains Capex Cut in 2025, Eyes Positive Cash Flow

Globe Telecom continues to optimize capital spending, maintaining its capital expenditures (capex) below $1 billion in 2025 as it aims to achieve positive free cash flow. The move underscores its commitment to financial discipline and long-term sustainability.

“We are pleased with our performance in 2024, which highlights the strength and resilience of our financial position,” Globe President and CEO Ernest Cu said. “Our focused capex strategy, combined with ongoing network optimization, has driven strong income growth and improved free cash flow. We are excited to build on this momentum in 2025.”

Globe’s capex for 2024 totaled PHP56.2 billion, a 20% decline from the previous year, aligning with its full-year guidance.

About 90% of capex was allocated to data-related investments to ensure the company’s network meets the increasing demand for digital services.

The capex-to-revenue ratio improved from 44% in 2023 to 34% in 2024, reflecting Globe’s prudent capital allocation.

Meanwhile, Globe’s total debt slightly declined from PHP250 billion in 2023 to PHP249.5 billion in 2024. Key gearing ratios for the period include a gross debt-to-EBITDA of 2.66x, net debt-to-EBITDA of 2.43x, and a debt service coverage ratio of 3.42x.

Globe remains confident in achieving its financial targets through disciplined investments and a strong focus on operational efficiencies.