GLOBE Telecom Inc. on Monday said that it was planning to cut its capital expenditure (capex) budget to below $1 billion next year to generate more cash flow.
In an online briefing, Globe CFO, Treasurer and Chief Risk Officer Juan Carlo Puno said the 2025 capex requirement would be funded via a mix of debt and equity, as well as P11 billion in remaining proceeds from telco tower sales.
“In terms of capex, we are still finalizing our plans. We have [communicated] to the market during the past few quarters with the signal of… dropping our cash capex to below $1 billion for 2025, with the goal of generating a lot more operating cash flow for that year,” Puno said.
“In terms of how we will fund it, it will always be a mix of whatever is the most appropriate way of funding it, whether it be debt or equity, we will follow through,” he added.
He noted that Globe still has to collect some P10 billion to P11 billion from tower sales.
“Assuming we are able to get that, that will complement the fundraising we will do for 2025,” Puno said.
Puno said the company was “on track to deliver” this year’s income targets.
Globe shares on Monday fell by P46, or 2.11 percent, to close at P2,134 apiece.
Be the first to comment