Leading digital solutions platform Globe is strategically realigning its capital expenditure (CAPEX) to bolster capital efficiency and optimization across its network infrastructure.
With a total investment of P54 billion in the first nine months of the year, Globe reported a 27% decrease in CAPEX compared to the same period last year. This adjustment aligns with the company’s revised full-year CAPEX guidance of US$1.3 billion or about P71.5 billion.
Over 90% of the expended amount has been directed towards data-related enhancements, ensuring customers have seamless access to digital solutions and robust connectivity.
“With a rapidly evolving market landscape, Globe maximized its spending with an aggressive build-plan in the past 3 years to deliver exceptional service to our customers,” said Rizza Maniego-Eala, Globe Chief Finance Officer. “Our current refined CAPEX strategy underscores our dedication to capital efficiency as part of our commitment to return to free cash flow positive territory, and focusing on high-impact investments that cater to our customers’ digital demands.”
The company’s approach has seen a shift in focus from expansive network projects to enhancing capacity and performance of existing infrastructure. This includes easing the spend on 5G given the lack of viable use cases amidst current market conditions.
“Our investments remain robust yet discerning, prioritizing the fortification of our mobile network while pivoting our fiber strategy from capacity expansion to maximization. The optimization of our network is not just about expanding our footprint but about ensuring that every site is primed to deliver the best possible experience for our customers,” she added.
Globe’s capital efficiency effort ensures that investments are not only sustainable but responsive to the actual needs and consumption patterns of consumers.
Its strategic CAPEX deployment aligns with Globe’s long-term vision of creating a more connected world. By optimizing its network and capital expenditures, Globe is poised to strengthen its market position and deliver superior value to its customers and stakeholders. (PR)