Globe’s 2024 revenues hit record high as GCash dominates cashless scene

MANILA, Philippines – Despite a 1% decline in its 2024 net income, Globe Telecom ended the year with record revenues of P165 billion thanks to growing contributions from its e-wallet GCash.

The Ayala-owned telco giant’s net income slipped to P24.3 billion due to lower sale and leaseback closings from tower sales in 2024. “Higher depreciation expenses and non-operating charges further weighed on performance,” Globe said in a disclosure.

Globe’s mobile and corporate data businesses held the fort for its topline, contributing 83% to revenues. It noted that the shift in data-driven services helped offset declining contributions from mobile texts and calls.

Despite the 5% decline in its home broadband business revenues, the telco giant noted growing revenues from its prepaid fiber broadband service GFiber Prepaid, with its number of subscribers growing 16%.

For Globe’s president and chief executive officer Ernest Cu, this growth reflected a budding market for prepaid fiber broadband services.

“It truly delivers and validates our belief that there’s a substantial prepaid market for fiber and that delivering the right product will yield very good results,” he said during a briefing on the telco giant’s earnings.

Meanwhile, non-telco revenues dropped 47% due to the deconsolidation of electronic payment system provider ECPay after a 77% stake was sold to Mynt.

Globe’s earnings before interest, taxes, depreciation and amortization (EBITDA) grew 7% to a new all-time high of P86.6 billion. Its EBITDA margins also exceeded expectations as 52.6% — a sign of expense management while maintaining profitability.

EBITDA margins often measure how much cash profit a company made in a year.

Dominant results from GCash

GCash’s parent company Mynt accounted for 12% of Globe’s net income before tax as the e-wallet solidified itself as a preferred platform for digital financial services. Globe’s share in Mynt’s equity earnings account for P3.8 billion, 59% more than 2023’s P2.4 billion.

According to Globe, 80% of Filipinos have used GCash. Around 92% of its customer base includes low- to lower-middle income Filipinos, while 78% of its users are from outside Metro Manila.