Globe is maintaining its reduced capital expenditures (capex) in 2025, keeping it under $1 billion as the company works toward achieving positive free cash flow. Globe said the move is aligned with its efforts to manage costs while ensuring sustainable growth.
Globe’s total capex for 2024 reached ₱56.2 billion, a 20% decline from the previous year. The company said this reduction aligns with its full-year targets. Around 90% of the spending was allocated to data-related projects, supporting the increasing demand for digital services.
“Our focused approach to capex, coupled with the ongoing optimization of our network, has enabled us to achieve strong income growth and improved free cash flow. We are excited to continue building on this momentum in 2025,” Ernest Cu, president and CEO of Globe, said in a statement.
The company’s capex-to-revenue ratio dropped from 44% in 2023 to 34% in 2024, indicating a more cautious approach to spending.
Globe also reported a slight decline in its total debt, from ₱250 billion in 2023 to P249.5 billion in 2024. Key financial ratios for the period included a gross debt-to-EBITDA of 2.66x, a net debt-to-EBITDA of 2.43x, and a debt service coverage ratio of 3.42x.
With continued cost management and operational efficiencies, Globe expects to reach its financial goals while maintaining reliable network services for customers.