Digital solutions platform Globe has announced a capital expenditure (CAPEX) budget of approximately $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 $1 billion by 2024 as part of its efforts to optimize the existing infrastructure and refocus capital deployment,” said Rizza Maniego-Eala, chief finance officer, Globe. “These efficiency efforts will be done without sacrificing customer experience and revenue opportunities.”
Globe said its commitment to providing its customers with a world-class internet experience is evident in its high CAPEX spending in 2022, which closed at P101.4 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,” Globe said. “Despite the reduced CAPEX, Globe will continue to provide its customers with the best digital solutions and connectivity through its extensive network backbone.”