Globe shows resilience with solid 2024 results, eyes stronger 2025 amid stronger competition

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Globe Telecom Inc. is upbeat in its projection of achieving a sustainable free cash flow this year despite challenges posed by the increasing prevalence of lower-margin data services and increased competition in the industry.

In a statement on Friday, Feb. 7, Globe announced its intentions to keep its 2025 capital expenditure (capex) budget below $1 billion.

The company said this a decrease from last year’s capex of approximately ₱56.2 billion, which in itself, a 20 percent decline from 2023.

“This strategic reduction aims to optimize capital utilization and achieve positive free cash flows by 2025,” Globe stated.

The cash capex to revenue ratio dipped from 44 percent in 2023 to last year’s 34 percent. In the same manner, the capex to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio marked down from 87 to 65 percent.

The majority of Globe’s capex last year, about 90 percent, was invested in data requirements to ensure uninterrupted access to digital solutions and connectivity services for customers.

This same intent is expected to continue in 2025 as Globe faces stiffer competition from telecommunication players such as the PLDT Group, which includes Smart Communications, and DITO Telecommunity.

With this, the company announced that “margins will be affected by the growing share of lower-margin data-related products, but cost management efforts will mitigate this impact.”

Globe is likewise anticipating a low to mid single digit revenue increase in 2025 through its existing product platforms.

In 2024, the telco giant set a new record in its consolidated gross service revenues with ₱165 billion, a steady 2 percent growth from the previous year.

The mobile and corporate data businesses were the key drivers of this new feat, contributing a combined 83 percent to the revenues.

“This milestone was achieved despite headwinds from home broadband normalization, the ECPay deconsolidation, and the prolonged impact of inflation,” Globe stated.

The company noted that its growth in the latter part of 2024 was also compounded by the series of successive typhoons that weighed on consumer spending.

The consolidated net income, meanwhile, stood at ₱24.3 billion in 2024—a one percent downtick from 2023.

Globe’s core net income, adjusted to exclude non-recurring charges, foreign exchange, and mark-to-market charges, posted a 14 percent year-on-year growth at ₱21.5 billion.

For this year, the EBITDA margin is projected to stay in the low 50s after reaching 53.6 percent in 2024.

In a statement, Globe President and CEO Ernest Cu said the company’s performance last year showcased its resilience and adaptability in an evolving digital landscape.

He said 2025 would see a more firm commitment from Globe in driving digital transformation in the Philippines. 

“The strong results we delivered in 2024 serve as a strong foundation to propel our momentum into 2025,” said Cu.

“By prioritizing network enhancements, pioneering digital innovations, and fortifying our core telco business, we are well-positioned to expand our market presence and create greater value for our stakeholders,” he added.

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