Globe scales down capex next year

Globe Telecom Inc. aims to reduce its capital expenditure (capex) to below $1 billion or roughly P60 billion next year using proceeds from its ongoing tower sales to support financial and cost-cutting strategies.

In a press briefing on Monday, incoming Globe president Carlo Puno said the company is finalizing its capex guidance next year.

“We have gone to the market over the past few quarters, signaling a drop in cash capex to below $1 billion,” Puno said.

“Preferably, we generate more operating cash flow for 2025. It’s always a mix of whatever way of funding it, be it debt, we will also follow through.”

A significant portion of the planned capex reduction will be supported by proceeds from Globe’s tower sales, which Puno noted have not been fully collected.

To date, Globe still has between P10 billion and P11 billion in pending tower sale proceeds, expected to complement its capex funding and operational needs in 2025.

Globe began reducing its capex last year after reaching a high of P101 billion in capital outlays in 2022. In 2023, capex spending fell to P71 billion.

From January to September, Globe recorded a 6-percent increase in net income, reaching P20.6 billion from P19.4 billion. Service revenues rose by 2 percent to P124 billion, driven by the strength of its mobile business.

Mobile key growth driver

The mobile segment remains a key growth driver, with mobile revenue increasing to P87.7 billion from P83.2 billion in 2023.

Mobile services now account for 71 percent of Globe’s gross service revenues, with mobile data alone generating P72.9 billion.

In its enterprise segment, Globe’s corporate data business reported revenues of P15.5 billion, while home broadband revenues declined by 6 percent to P17.9 billion as consumers increasingly shifted to fiber products.

Cost efficiencies have further contributed to Globe’s performance, with operating expenses dropping by 2 percent to P59.1 billion due to cost-saving measures and the deconsolidation of ECPay.

Globe remains cautious in its growth outlook, with Puno noting that the company is “on track” to achieve low to mid-single-digit revenue growth.