Globe Telecom Inc. reported strong financial results for 2024, driven by record service revenues but a slight decrease in net income compared to the previous year. The company attributed the income result to fewer tower sale and leaseback closings in 2024. Despite challenges in the market, Globe achieved new highs in EBITDA and expanded its 5G network coverage.
Globe Telecom Inc. reported strong financial results for 2024, marked by record service revenues of P165.02 billion, a 2 percent increase from the previous year's P162.33 billion. This performance translated to a net income of P24.29 billion for the year, a slight decrease of 1 percent from 2023's P24.58 billion. The company attributed the income result to fewer tower sale and leaseback closings in 2024, which impacted the one-time gains from tower sales recorded in 2023.
However, Globe highlighted a new high in earnings before interest, taxes, depreciation, and amortization (EBITDA) at P86.80 billion, a 7 percent jump from the prior year's P81.40 billion, partially offset by higher depreciation expenses and nonoperating charges. Globe President and CEO Ernest Cu emphasized the company's resilience and adaptability in the evolving digital landscape, stating that its robust EBITDA, strong business model, and significant growth are testaments to its ability to thrive in this dynamic market.The record service revenues were driven by the mobile and corporate data segments, despite challenges stemming from home broadband normalization, the ECPay deconsolidation, and prolonged inflation. Globe ended 2024 with 60.9 million mobile subscribers, up from 57 million at the end of 2023, while its home broadband base reached 1.74 million subscribers, a slight decrease from 1.75 million a year earlier. The company also added 587 new 5G sites, achieving 98.69-percent coverage in the National Capital Region and 96.95 percent in key cities in the Visayas and Mindanao regions. This expanded 5G connectivity to approximately 106 towns, with over 9 million devices connected to its 5G network as of December 2024.Mobile business led revenue generation, reaching P116.71 billion, surpassing the P112.38 billion recorded in 2023. Corporate data services also witnessed a record revenue of P20.37 billion, up from P18.32 billion, fueled by the information and communication technology (ICT) and core data business. Conversely, home broadband service revenues declined to P23.79 billion from P25.11 billion a year earlier due to customers shifting from fixed wireless to fiber offerings. Revenues from fixed online voice fell to P1.50 billion from P1.60 billion due to lower outbound usage, while non-telco revenues declined to P2.64 billion from P4.93 billion due to the deconsolidation of ECPay following the sale of a 77-percent stake to Mynt last year. Globe's fintech arm, Mynt, continued its upward trajectory with Globe's share in the firm's equity earnings rising 59 percent to P3.80 billion from P2.4 billion. Globe's capital expenditures (capex) as of end-December 2024 stood at P56.20 billion, a 20 percent decrease from the previous year's P70.60 billion, aligning with guidance. Approximately 90 percent of the capex was allocated to its data network infrastructure. For 2025, Globe anticipates a low to mid-single-digit revenue increase and a full-year capex under $1 billion. Globe CFO Juan Carlo Puno emphasized the company's commitment to maintaining a capex under $1 billion, consistent with its 2024 targets, with a significant portion allocated to the mobile business and efforts to revive the home broadband business driven by fourth-quarter growth. Globe shares on Friday experienced a slight dip of P12, or 0.52 percent, to P2,288 each, amidst a 1.39-percent drop for the benchmark Philippine Stock Exchange index.
GLOBE Telecom Philippines Financial Results Revenue Net Income 5G EBITDA Digital Landscape
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Globe Telecom Posts Record Revenues Despite Net Income DeclineGlobe Telecom ends 2024 with record revenues of P165 billion, driven by the growth of its e-wallet GCash. Despite a 1% decline in net income to P24.3 billion due to lower tower sales and increased expenses, Globe's mobile and corporate data businesses remain strong contributors. The company also sees growth in its prepaid fiber broadband service GFiber Prepaid. Meanwhile, non-telco revenues fell due to the deconsolidation of ECPay. GCash's parent company Mynt contributed significantly to Globe's earnings, highlighting the e-wallet's dominance in the digital financial services market.
Read more »
Arado says PLDT 'way past revenge' vs AkariMANILA, Philippines — What happens in 2024, stays in 2024.
Read more »
Philippines Posts BOP Deficit in December 2024, Reflecting Economic TrendsThe Philippines experienced a balance of payments (BOP) deficit of $1.5 billion in December 2024, contrasting with the $642 million surplus recorded in the same month of 2023. This shift reflects various economic factors, including a widening trade deficit, lower net receipts from trade in services, and net foreign borrowings by the national government. Despite these challenges, continued inflows from personal remittances, foreign portfolio investments, and direct investments partially mitigated the decline.
Read more »
Philippines' Balance of Payments Posts Third Consecutive Deficit in December 2024The Philippines' balance of payments (BOP) recorded a $1.508 billion deficit in December 2024, marking the third consecutive month of deficit. This reversal from the $642 million surplus in December 2023, brought the country's overall BOP surplus down to $609 million at the end of 2024.
Read more »
Semirara posts record coal shipments in 2024SEMIRARA Mining and Power Corp. (SMPC) said that coal shipments hit a record 16.5 million metric tons (MT) last year, surpassing the previous all-time high of 15.8 million MT achieved in 2023, due to strong demand from China and domestic markets.
Read more »
BPI posts double-digit income growth in 2024 | Cai U. OrdinarioDESPITE higher operating expenses, Ayala-led Bank of the Philippine Islands (BPI) still booked double-digit growth in its net income for 2024. In a statement, the BPI said its net income grew 20 percent to P62 billion in 2024 while its fourth-quarter net income posted an eight percent growth to P14.
Read more »