Leading digital solutions platform Globe closed 2022 with record-high capital expenditure (CAPEX) of P101.4 billion, 9% above the previous year’s figures. This is the largest annual investment the company has ever made for its mobile and fixed network, with the goal of providing a #1stWorldNetwork for its customers nationwide.
Globe has allocated the majority or 86% of its total cash CAPEX to data requirements to ensure its subscribers have access to the latest digital solutions and best-in-class connectivity wherever they are.
It has been investing in record levels of CAPEX over the past few years to build a #1stWorldNetwork. 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 have enabled the proper deployment of capital over the last few years, allowing it to finally focus on capital efficiency and cash flow optimization. This will bring CAPEX in 2023 down to $1.3 billion, over 30% 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. 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,” said Globe Chief Finance Officer Rizza Maniego-Eala.
With its commitment to innovation and customer satisfaction, Globe is poised to continue providing top-notch internet experience to its customers nationwide. (PR)