As of the first three months of the year, Globe invested P13.7 billion in capital expenditure (capex), lower by 22% than the similar period of 2023. This effort to reduce its capex spending is in line with the Company’s continued focus on optimizing capital deployment and bringing free cash flows into positive territory by 2025. Around 91% of this period’s capex was allocated for the data requirements to ensure that customers will be able to access essential digital services as well as entertainment options anytime and anywhere.
In 2023, Globe shifted its focus from opportunistic capacity expansion to optimizing network investments. This strategic change led to positive results, enabling a return to sustainable capital expenditure (CAPEX) levels without compromising network quality or capacity. As a result, there was a significant decline in purchase orders (POs) issued last year, which continued into the first quarter of 2024. During this three-month period, POs totaled only US$ 131 million, representing just 53% of actual CAPEX. These streamlined PO issuances align with the Company’s plan to achieve positive free cash flow.
Moreover, with Globe’s firm dedication to deliver dependable and high-speed internet connectivity nationwide, Globe built 116 new cell sites, and upgraded 812 mobile sites to LTE as of end March 2024. The company also deployed 19,544 fiber-to-the-home (FTTH) lines, notably lower than last year’s rollout to maximize the utilization of its existing fiber inventory and this year’s reduction in capex.
The Company likewise deployed 27 new 5G sites across the Philippines, increasing its 5G outdoor coverage to 98.35% of the National Capital Region and 92.86% of key cities in Visayas and Mindanao for the first three months of the year. Globe also logged over 6 million devices in its 5G network in March 2024. In addition, Globe expanded its 5G partnerships with 167 global partners in 87 destinations.
Globe’s ongoing efforts to expand and enhance its network is aligned with its dedication to the United Nations Sustainable Development Goals, specifically SDG No. 9, which emphasizes innovation and infrastructure as crucial catalysts for economic advancement.
Lastly, Globe has taken the top spot as the Philippines’ most valuable telecom brand and seventh place in the ASEAN region, beating its main local competitor, based on the Brand Finance3 Telecoms 150 2024 report. This notable ranking is accompanied by an impressive AAA brand strength rating, demonstrating Globe’s commitment to excellence and its ability to consistently meet customer expectations through innovative services and solutions.
Recent Development:
Tower Sale and Leaseback Deal:
- On March 14, 2024, Globe successfully transferred additional 154 towers to MIDC for ~P1.85 billion.
- On March 25, 2024, Globe turned over another 91 towers to Frontier Towers for approximately
~P1.16 billion and 33 towers to Unity for a cash consideration of P396 million.
- On April 16, 2024, Globe closed 90 towers transferred to PhilTower for approximately P1.3 billion.
- On April 26, 2024, Globe turned over additional 181 towers to MIDC for ~P2.17 billion.
- On May 10, 2024, Globe closed 100 towers transferred to PhilTower for roughly P1.5 billion
Overall, Globe has secured proceeds of approximately ~P67.3 billion, representing around 69.5% of the tower deal, through the official transfer of ownership of 5,216 out of 7,506 towers sold.
Data Center Update:
- STT Fairview is progressing according to schedule, with operations expected to start in early 2025. Structural work is underway in preparation for the installation of second-level equipment, which is scheduled for June 2024.
- STT Cavite 2 has wrapped up its design phase and secured all necessary pre-construction permits, targeting operational readiness by mid-2025.
Network Related Update:
- Globe has activated a segment of the Philippine Domestic Submarine Cable Network (PDSCN) from Luzon to Mindanao, signaling the start of on-ground connections to serve more customers. Globe’s segment in the PDSCN Express Route was lit up on February 5, covering the following points: Lucena City, Quezon; Boac, Marinduque; Calatrava, Tablas Island, Romblon; Roxas City, Capiz; Placer, Masbate; Palompon, Leyte; Mactan, Cebu; Talisay City, Cebu; Tagbilaran City, Bohol; Cagayan de Oro City, Misamis Oriental.
https://www.globe.com.ph/about-us/newsroom/corporate/new-submarine-cable-segment-luzon-to-mi ndanao
- Through a partnership sealed in February 2022, Globe and Converge embarked on its first joint project in 2022: a co-build spanning 137 kilometers from Pili, Camarines Sur, to Legazpi City, Albay. Utilizing cutting-edge technology, this venture includes the deployment of state-of-the-art microduct solution underground facilities. This project wrapped up in Q3 of 2022. Following the success of the initial undertaking, a second co-build project in Leyte Province began in the third quarter of 2023. Spanning 209 kilometers to connect Tacloban and Maasin via Baybay, it is currently 80% complete and is expected to conclude by the third quarter of 2024. https://www.globe.com.ph/about-us/newsroom/corporate/globe-converge-co-build-projects-bicol-leyte
