February 06, 2025No comments

Globe Reports Strong Financial Performance in 2024, Achieving Record Revenues and Solid Growth Across Key Segments




GLOBE REPORTS FOURTH QUARTER & FULL YEAR 2024 FINANCIAL AND OPERATING RESULTS:

GLOBE ACHIEVES STRONG FINANCIAL PERFORMANCE, MEETING EXPECTATIONS

  • Record Service Revenues: ₱165.0 billion, a 2% increase YoY
  • Record EBITDA: ₱86.8 billion, a 7% increase YoY
  • EBITDA Margin: Exceeds guidance, holding steady at 52.6%
  • Normalized NIAT: ₱21.7 billion, up 13% YoY
  • Core NIAT: ₱21.5 billion, up 14% YoY
  • Mynt’s Contribution: Exceptional performance, contributing 12% to net income before tax

MOBILE BUSINESS EXCELS WITH RECORD REVENUES AND STRONG DATA GROWTH

  • Mobile Revenues: ₱116.7 billion, up 4% YoY, driven by record mobile data revenues of ₱97.4 billion (up 7% YoY)
  • Corporate Data Revenues: ₱20.4 billion, up 11% YoY
  • GFiber Prepaid: Sustained growth and increasing customer trust
  • Home Broadband: Positive sequential performance, despite a slight YoY decline

CAPEX AND 2025 OUTLOOK

  • Full Year 2024 CAPEX: ₱56.2 billion, down 20% YoY, in line with guidance
  • 2025 CAPEX Guidance: Below US$1 billion, aligning with positive free cash flow goals

Key Financial Overview: Data Services Drive Robust Growth

Globe achieved solid financial performance in 2024, setting a new record with consolidated gross service revenues of ₱165.0 billion, reflecting a 2% YoY increase. This growth came despite challenges like the normalization of home broadband, the deconsolidation of ECPay, inflation, and typhoons impacting consumer spending. The mobile and corporate data segments were pivotal, contributing 83% of total gross service revenues, up from 81% in 2023. Mobile revenues grew by 4%, while corporate data revenues surged by 11%.

Mobile business revenues reached ₱116.7 billion, surpassing the previous record of ₱112.4 billion, supported by effective data monetization and network improvements. Mobile customer base expanded to 60.9 million subscribers, up from 57.0 million in 2023.

Mobile data revenues hit ₱97.4 billion, a 7% increase YoY, fueled by growing demand for mobile applications. Mobile data now represents 83% of mobile revenues, up from 81% in 2023. Mobile data traffic also rose to 6,351 petabytes.

Corporate data revenues reached a record ₱20.4 billion, an 11% YoY increase, driven by strong performance in ICT services, including 29% growth in Business Applications Solutions (BAS) and 4% growth in cybersecurity services.

Globe’s home broadband revenues totaled ₱23.8 billion, showing a 5% YoY decline, mainly due to a shift from fixed wireless to fiber. Fiber revenues grew 2%, and subscribers increased by 16%, particularly driven by GFiber Prepaid. Fixed wireless revenue declined at a slower pace, and GFiber Prepaid continued to show impressive growth, adding 260,000 subscribers with a 74% quarter-on-quarter growth.

Non-Telco Revenues and Cost Management

Non-telco revenues decreased by 47% YoY, largely due to the deconsolidation of ECPay following the sale of a 77% stake to Mynt. Adjusting for this change, the YoY decline was 12%.

Operating expenses (including subsidy) dropped by 3% to ₱78.2 billion, driven by cost-saving measures and the deconsolidation of ECPay. Reductions in areas such as staff costs, marketing, and maintenance contributed to the savings, with operating expenses falling 2% if ECPay had been deconsolidated throughout 2023.