Globe’s Commitment to Empowering Filipinos and Sustainable Growth
As the digital economy in the Philippines continues to expand, Globe remains dedicated to empowering Filipinos across all economic segments. By focusing on network improvements and digital innovations, Globe aims to unlock value as a hyper-focused digital company while strengthening its core telecommunications business.
Key Business Highlights: Sustainable Infrastructure Investment
In the first nine months of 2024, Globe invested approximately ₱41.0 billion in capital expenditures (capex), marking a 24% decrease compared to the same period in 2023. A significant 91% of this investment was allocated to data requirements, ensuring uninterrupted access to digital solutions and connectivity services for customers. The cash capex to revenue ratio also dropped from 45% in 2023 to 33% in 2024, aligning with Globe’s strategy to optimize capital utilization and achieve positive free cash flows by 2025.
Since 2023, Globe has shifted its focus from capacity expansion to optimizing existing network investments. This strategic approach has allowed the company to maintain network quality and capacity while reducing purchase orders (POs) to 53% of actual cash capex in 2024. This aligns with Globe’s long-term goal of achieving positive free cash flow.
Infrastructure Expansion and 5G Deployment
By the end of September 2024, Globe had built 684 new cell sites and upgraded 2,723 existing mobile sites to LTE technology. Additionally, 55,076 fiber-to-the-home (FTTH) lines were deployed to strengthen its fiber infrastructure. Globe also extended its 5G outdoor coverage by deploying 378 new 5G sites across the Philippines, achieving 98.51% coverage in the National Capital Region and 94.91% in key cities in the Visayas and Mindanao regions. As of September 2024, over 8 million devices were connected to Globe’s 5G network.
Commitment to Sustainable Development
Globe’s consistent investment in network infrastructure supports its mission to ensure equitable access and maximize the potential of the digital economy for communities across the Philippines. These efforts align with the United Nations’ Sustainable Development Goals, particularly SDG No. 9, which emphasizes the importance of innovation and robust infrastructure for economic progress.
Recent Developments
Tower Sale and Leaseback Deal:
- On July 23, 2024, Globe completed its Tower Sale and Leaseback Deal with Frontier Towers, closing the last batch of towers for ₱13.17 billion.
- On October 28, 2024, Globe transferred an additional 25 towers to Unity for ₱300 million.
- Globe has turned over 6,653 out of 7,506 towers, generating approximately ₱85.5 billion in proceeds.
Typhoon Kristine Response:
- Globe promptly restored network services in areas affected by Typhoon Kristine, prioritizing call, text, and data services.
- Free connectivity options were provided to affected customers, including unlimited calls and texts, data for apps and social media, and extended payment due dates.
- Emergency stations offering free calls, charging, and WiFi were set up in heavily impacted areas.
Product and Data Center Updates:
- GFiber revised its pricing structure, offering plans from ₱1499 to ₱7,499 per month.
- Construction of the STT Fairview and STT Cavite 2 data centers is progressing, with operations expected to begin in early 2025.
Network Enhancements:
- Globe upgraded 450 cities and towns to fiber-optic technology and enhanced connectivity in Mindanao and Pangasinan with new and upgraded cell sites.