Globe reduces capex by 25% in 2024 to align with sustainable strategy

By Francis Allan L. Angelo

Globe Telecom Inc. has reported a significant 25% reduction in its capital expenditures (capex) for the first half of 2024, bringing its total spending to ₱28.3 billion.

The strategic shift aligns with Globe’s broader plan to optimize capital deployment and achieve positive free cash flow by 2025.

Ernest Cu, Globe President and CEO, highlighted the company’s change in focus from aggressive capacity expansion to optimizing network investments.

“Our focus has shifted from opportunistic capacity expansion to optimizing network investments,” said Cu. “This strategy has allowed us to return to sustainable capex levels without compromising network quality or capacity,” Cu said.

Globe’s capex-to-revenue ratio also saw a notable decrease, dropping from 44% in the first half of 2023 to 34% in the same period of 2024.

The reduction reflects the company’s emphasis on sustainability and efficiency, as approximately 91% of its capex was dedicated to supporting data services, underscoring Globe’s commitment to enhancing its digital infrastructure.

Despite the cutback in capex, Globe continued to expand its network infrastructure. In the first six months of the year, the company built 352 new cell sites and upgraded 1,942 mobile sites to LTE technology.

Globe also deployed 39,880 fiber-to-the-home (FTTH) lines and established 256 new 5G sites, significantly boosting its 5G coverage to 98.45% in Metro Manila and 94.19% in key cities across Visayas and Mindanao.

Globe’s commitment to network expansion is further supported by its successful tower sale and leaseback agreements, which saw the transfer of 375 towers in June and July 2024.

The leaseback is part of a larger plan to monetize its tower assets, with 6,628 out of 7,506 towers now sold, generating approximately ₱85.2 billion in proceeds.

Globe’s network resilience was put to the test during Typhoon Carina, where the company’s infrastructure remained largely operational despite severe weather conditions.

On the global stage, Globe expanded its 5G partnerships to include 167 partners across 87 destinations, further strengthening its international connectivity offerings.

Additionally, Globe’s data center business is making significant strides. The STT Fairview facility is on track for completion by April 2025, and the STT Cavite 2 site has moved into the pre-construction phase, aiming to double the company’s IT capacity from 22 MW to 52 MW by 2026.

In line with its sustainability goals, Globe has implemented energy-efficient technologies in its wireless network, conserving around 637 MWh of energy and reducing its carbon footprint by 464 metric tons of CO2 by the end of 2023.