Globe Telecom Inc. hit its largest annual investment for mobile and fixed networks last year, with a P101.4 billion capital expenditure (CAPEX), 9 percent above 2021 figures, the telco stated Friday, Feb. 17.
Globe has allocated the majority, or 86 percent, of its total cash capex to data requirements.
This ensures its subscribers have access to the latest digital solutions and best-in-class connectivity wherever they are.
Over the past few years, Globe has been investing in record levels of capex to build a first world network.
In 2022 alone, Globe put up 1,702 new cell sites, upgraded around 13,600 mobile sites to LTE, and installed 2,267 new 5G sites nationwide.
Globe’s strict governance processes enabled the proper deployment of capital, allowing it to focus on capital efficiency and cash flow optimization.
However, this 2023, Globe will bring down its capex to $1.3 billion, over 30 percent lower than the 2022 peak level, with the mid-term target of reducing this further to $1 billion by 2024.
The reduced capex will allow Globe to bring its free cash flow back to sustainable levels, as it reaps the benefits of the investments made in its infrastructure in the past few years.
"Globe is proud to have made record-high investments in our network in the past few years, allowing us to build a significant network backbone to support the demands of our customers," according to Chief Finance Officer Rizza Maniego-Eala.
"In 2023, we will focus our efforts on streamlining our capital deployment and maximizing the infrastructure we have on the ground, while ensuring we continue to provide the best digital solutions to our subscribers,” she concluded.