Globe Telecom has just unveiled its financial results for the second quarter and the first half of 2024, showcasing a strong and resilient performance amidst a dynamic market environment. Here’s a closer look at the key highlights and what’s next for Globe.
Solid Financial Growth
Revenues and Earnings: Globe’s consolidated gross service revenues for the first half of 2024 reached ₱82.2 billion, marking a 2% increase compared to the previous year. The company achieved a record EBITDA of ₱43.0 billion, up 6% YoY, with an impressive EBITDA margin of 52%, surpassing their guidance.
Net Income: The company reported a normalized Net Income After Tax (NIAT) of ₱11.9 billion, up 19% YoY. The core NIAT, excluding one-time gains, also rose by 18% to ₱11.7 billion.
Mobile and Data Success: Globe’s mobile business achieved record revenues of ₱58.4 billion, driven by a significant 9% increase in mobile data revenues. Corporate data revenues also saw a robust 8% growth, reaching ₱9.8 billion.
Strategic Capital Spending
Globe’s capital expenditure (CapEx) for the first half of 2024 was ₱28.3 billion, a notable 25% decrease YoY. This reduction aligns with Globe’s strategy to optimize capital deployment while still supporting growth in data infrastructure. The company has invested heavily in network expansion, including new cell sites and upgrades to existing infrastructure.
Environmental and Social Governance (ESG) Achievements
FTSE4Good Index: Globe has once again been included in the FTSE4Good Index Series, underscoring its commitment to strong environmental, social, and governance practices.
Sustainable Initiatives: The company’s GForest movement has successfully planted 2.8 million trees and avoided 125,000 tonnes of CO2 emissions, reflecting its dedication to sustainability and environmental stewardship.
Recent Developments and Innovations
Tower Sale and Leaseback: Globe completed its landmark tower sale and leaseback transactions, transferring a total of 6,628 towers and generating approximately ₱85.2 billion. This strategic move is expected to enhance the company’s ability to meet evolving connectivity needs.
Network Expansion: The company has made significant strides in network infrastructure, including the deployment of 256 new 5G sites and the expansion of its fiber infrastructure. This expansion aims to improve connectivity and support future growth.
Data Centers: Globe is advancing its data center capabilities with the ongoing construction of STT Cavite 2, which is set to increase its IT capacity to 52 MW by 2026.
Impact of Recent Events
Typhoon Carina: Despite the challenges posed by Typhoon Carina, Globe’s network and core services remained operational. The company provided connectivity support to affected customers and reported no significant damage to its infrastructure.
Crowdstrike Outage: Globe’s core services were unaffected by a global IT outage caused by Crowdstrike software issues, maintaining consistent connectivity for users.
Portfolio Highlights
GCash Growth: GCash, Globe’s fintech arm, continues to dominate as the Philippines’ leading digital cashless ecosystem. Recent strategic investments have increased Mynt’s valuation to US$5 billion, reflecting its growing influence and success.
917Ventures: Globe’s corporate venture builder, 917Ventures, is driving innovation with investments in telehealth and sustainable transportation, including the introduction of Gogoro Smartscooters®.
Looking Ahead
Globe Telecom remains optimistic about the future, focusing on innovation and customer-centric strategies to drive growth. The company is committed to optimizing its capital spending, enhancing network quality, and supporting sustainable development goals.
Stay tuned for more updates as Globe continues to shape the future of connectivity in the Philippines and beyond.
For further details, visit Globe’s Sustainability and Integrated Report pages.
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