Globe Telecom Reports Strong Q1 2024 Financial Results, Emphasizes Sustainable Growth

    Globe Telecom

    Globe Telecom reported robust financial performance for the first quarter of 2024, with consolidated gross service revenues rising by 3% year-on-year to PHP 41.1 billion.

    The increase was driven by growth in mobile and corporate data revenues, despite a decline in home broadband and non-telco services.

    Globe’s EBITDA hit a record PHP 21.4 billion, up 4% year-on-year, with an EBITDA margin of 52%, surpassing guidance. Normalized net income after tax (NIAT) and core NIAT both surged by 13% to PHP 5.8 billion.

    Globe’s mobile business revenues climbed 8% to PHP 29.1 billion, driven by a 10% increase in mobile data revenues, which reached PHP 23.8 billion.

    Corporate data revenues also set a record, growing 10% to PHP 5.0 billion. Mobile data traffic soared to 1,610 petabytes, accounting for 82% of mobile revenues.

    In the home broadband segment, revenues declined by 6% to PHP 6.1 billion, primarily due to a drop in fixed wireless subscriptions. However, the positive growth in the postpaid fiber segment, which saw a 3% increase in subscribers and revenues year-on-year, cushioned this decline.

    The total broadband subscriber base dipped by 26% to 1.7 million, reflecting market transitions towards more reliable wired connectivity.

    Capital expenditures (capex) stood at PHP 13.7 billion, down 22% year-on-year, as Globe continues to optimize capital deployment.

    Approximately 91% of capex was allocated for data requirements to ensure consistent access to essential digital services and entertainment options.

    Operating expenses, including subsidies, rose to PHP 19.8 billion in the first quarter from PHP 19.5 billion a year earlier.

    Globe’s cost-saving efforts, which included lower marketing and subsidy costs, were offset by increases in leases, repairs and maintenance, staff costs, and administrative expenses.

    Globe’s fintech arm, Mynt, continued its growth momentum, contributing 11% to Globe’s net income before tax, compared to 4% a year earlier. Mynt’s equity earnings grew by 138% year-on-year, amounting to PHP 962 million for the first quarter of 2024.

    Net income declined by 7% to PHP 6.8 billion compared to PHP 7.3 billion in the previous year. This was mainly attributed to higher depreciation expenses and non-operating charges. Excluding the one-time gain from the tower sale, normalized net income increased by 13% to PHP 5.8 billion.

    Globe was named the Philippines’ most sustainable brand by Standard Insights for the second consecutive year.

    The company also achieved a significant milestone, becoming the first publicly-listed Philippine company to have its net-zero science-based target validated and approved by the Science Based Targets initiative (SBTi), aiming for net-zero by 2050.

    Ernest L. Cu, President and CEO of Globe Telecom Inc., expressed satisfaction with the company’s performance. He noted, “Our financial performance for the first quarter exceeded expectations, with an impressive 52% EBITDA margin, indicating a positive start of the year and building momentum going into the coming quarters.”

    Cu also highlighted the progress of Globe’s landmark tower deal, which has seen the successful transfer of nearly 70% of its towers, positioning the company to meet dynamic connectivity demands.

    Globe’s strategic focus on innovation and customer-centricity, combined with its efforts to optimize capital deployment, positions the company well to achieve sustainable growth. Guided by these principles, Globe aims to continue overcoming challenges and seizing opportunities to create a brighter and more connected future for the Philippines.