Globe targets up to mid-single-digit revenue growth in 2024

Ayala-led Globe Telecom Inc. is targeting to grow its top line by up to mid-single-digit levels in 2024 after posting record-high figures in the previous year, with the company allocating $1 billion for its capital expenditure (capex).

Globe chief finance officer and chief risk officer Rosemarie Maniego-Eala on Wednesday said the company's revenue guidance for the year is a growth of low- to middle-single digit, while keeping the earnings before interest, taxes, depreciation, and amortization (EBITDA) margin at 50%.

The company reported a P162.3-billion all-time high consolidated service revenue in the past year, reflecting a 3%-growth from P158.0 billion in 2022 on the back of its mobile, corporate data, and non-telco services.

Mobile data revenues climbed 9% to P90.9 billion and corporate data revenues grew 7% to P18.3 billion, while home broadband revenues fell by 7% to P27.1 billion on the back of the drop in fixed wireless services.

Core net income, excluding the impact of non-recurring charges and foreign exchange and mark-to-market charges, fell to P18.9 billion from P19.2 billion, while normalized core net income declined by 1%.

The company plans to spend $1 billion this year and another $1 billion in 2025, after it invested P70.6 billion in 2023 which reflected a 30% decline from the previous year, which went mostly to data requirements.

"We are going to spend $1 billion of capex this year compared to the $1.3 billion in 2023. In terms of funding, this will be a combination," Eala said in a virtual briefing.

"The real thrust for us [is] to go back to free cash flow positive by 2025,” she added.

Eala said among the funding sources is the proceeds from Globe's tower sale and leaseback, as it raised P57.4 billion or 60% of the deal after turning over 4,467 towers out of 7,506 towers sold. It generated P27 billion in proceeds in 2023 alone.

Globe said its purchase order (PO) issuances for the past year stood at $600 million or 36% of the average annual PO issuances in the past five years, enabling the firm to reduce its capex over the next few years.

"As we move forward to 2024, we are very optimistic that we will achieve continued growth by executing well on our customer-focused strategy and enhancing innovations using digital solutions backed by our firm commitment to network excellence," Globe president and chief executive officer Ernest Cu said.

"We will push the boundaries of what's possible in the telecom industry to create greater value for our customers, stakeholders, and the broader digital ecosystem," he added. — VDV, GMA Integrated News