Globe Telecom, the leading mobile service provider in the Philippines, is optimistic about achieving positive cash flow by 2025.
The company continues to optimize spending through strategic capital expenditure reduction, maintaining robust performance across its operational fronts.
Globe is steadfast in its commitment to reach its 2025 target, focusing on key financial goals. For this year, Globe projects low to mid-single-digit revenue growth from its record-breaking 2023 levels, driven by sustained demand for data-related services.
The company aims for an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin of 50% and anticipates a cash capital expenditure (capex) of around $1 billion, which is 23% lower than the previous year’s investment.
“Despite economic challenges impacting consumer spending, we are maintaining our guidance for Full Year 2024. This approach aligns with our goal to optimize spending and remain on track to achieve positive free cash flow by 2025,” said Rizza Maniego-Eala, Globe’s Chief Finance Officer.
So far, Globe has maintained a positive trajectory, reporting a 3% increase in consolidated gross service revenue, reaching Php 41.1 billion in the first quarter of the year. This performance was driven by strong momentum in the mobile and corporate data businesses.
Additionally, the company’s consolidated EBITDA rose by 4% to Php 21.4 billion, reflecting a 3% increase in the topline and an improvement in the EBITDA margin from 51% to 52%, surpassing the full-year guidance of 50%.
For 2024, Globe has set a cash capex guidance of $1 billion, marking a strategic reduction from previous peak levels, and aims for even lower levels in 2025. As of the end of March, Globe’s cash capex spending reached Php 13.7 billion, a significant 22% reduction compared to the same period last year.
