Globe Telecom to significantly cut Capex in two years

Globe Telecom revealed that it will significantly lower its Capex (capital expenditure) in 2023 and 2024 as compared with ₱101.4 billion in 2022.
Globe Telecom 5G networkGlobe Telecom will cut its Capex by 30 percent to $1.3 billion in 2023. Globe Telecom has also set a target of $1 billion towards Capex for 2024.

In 2022, Globe’s capital expenditure rose 9 percent and the focus of the investment was in its mobile and fixed networks across the Philippines. Majority or 86 percent of this period’s Capex was allocated for data requirements.

Globe deployed over 1.4 million fiber-to-the-home lines in 2022 versus 1.45 million lines from a year ago to address the growing need for connectivity. For 2023, Globe will be shifting its focus to maximizing the utilization of its fiber inventory.

Globe built 1,702 new cell sites (vs. 1,407 in 2021), upgraded around 13.6 thousand mobile sites to LTE, and installed 2,267 new 5G sites to connect more consumers and businesses, Globe Telecom said in its earnings report.

Globe’s 5G outdoor coverage has reached 97.2 percent of the National Capital Region and 90.2 percent of key cities in Visayas and Mindanao. The company ended 2022 with 5G connectivity in 70 cities and towns across the Philippines versus 29 in 2021, more than doubling its coverage in a year. Globe also logged over 3.9 million devices in its 5G network in December of 2022.

Globe said service revenues reaching ₱158.0 billion, up 4 percent year-on-year. Mobile revenues comprised 68 percent of the total service revenues, with the total mobile customer base ending at 86.7 million in 2022. Mobile data revenues posted a record ₱83.8 billion for the full year of 2022 or 8 percent higher versus ₱77.8 billion in 2021.

Mobile data now accounts for 78 percent of mobile revenues from 75 percent last year. Mobile voice and mobile SMS revenues ended at ₱14.9 billion and ₱8.8 billion, lower year-on-year by 13 percent and 5 percent, respectively.

Globe’s postpaid fiber subscribers and revenues posted an increase of 35 percent and 84 percent, respectively.

Home Broadband business declined in the fourth quarter, ending the year at ₱27.1 billion from ₱29.4 billion a year earlier. Home Broadband subscriber count stands at 2.6 million or down by 30 percent year-on-year, with HPW data traffic declining to 450 petabytes as of end-December 2022 from 808 petabytes a year ago.