Globe to keep on trimming budget

MANILA, Philippines — Telco giant Globe Telecom Inc. is preparing to slash its capital expenditures in 2025 to below $1 billion, in line with its strategy to improve financial standing and maximize existing assets.

Globe chief finance officer Juan Carlo Puno yesterday said the telco could further trim its capex guidance in 2025, from $1 billion this year, as was committed to shareholders.

However, Puno underscored that nothing is final yet, as Globe is still in the process of firming up its financial framework for next year.

The telco plans to source its capex mostly from revenues, but may tap the debt market when the need arises, especially as interest rates are declining. Globe also expects to collect the remaining P11 billion in proceeds from its tower sale, which would amount to more than P96 billion.

“We have gone to the markets in the past few quarters with a signal of dropping cash capex to at least below $1 billion for 2025. That is still the commitment on Globe’s side,” Puno said.

“In terms of how we would fund it, preferably, we will generate a lot more working cash flow in 2025. The way we look at things is, it is always a mix of whatever is the most appropriate way of funding it. Be it debt, (be it equity), we will follow through,” he added.

For 2024, Puno said Globe is on track to attain its revenue target of growing in the low to middle single level on strong demand for mobile services across segments.

As of September, Globe’s telco revenues have gone up by two percent to P124.01 billion, carried by increasing contributions from the mobile and corporate units.

Globe brought down its capex guidance in 2024 to a five-year low of P55 billion. In doing this, the telco wants to maximize its pool of existing assets without letting up on its network buildup.

Aside from this, Globe hopes to become cash flow positive by next year. The telco also looks to ramp up spending for its non-telco ventures, dreaming of developing another unicorn similar to the success story of GCash.

Internally, the telco is also shaking up its boardroom structure, with Carl Raymond Cruz, former CEO of Airtel Nigeria, named as deputy CEO of the company.

At the annual stockholders meeting in April 2025, Cruz will be nominated as the next CEO of Globe, succeeding Ernest Cu.