Globe Telecom Reports Resilient Q1 2024 Amid Strategic Investments and Network Expansion

On May 15, 2024, Globe Telecom held its 1Q 2024 Financial Media Briefing via zoom, revealing notable achievements and strategic adjustments amid a challenging economic landscape.

During the briefing, Globe reported consolidated service revenues of PHP 41.4 billion, marking a modest 3% year-over-year increase. This growth was primarily driven by robust performances in mobile data and home broadband segments, despite competitive pressures and macroeconomic headwinds. The mobile business, which remains Globe's cornerstone, saw a revenue increase of 4% from the previous quarter, reflecting the company's efforts to enhance network services and customer engagement. Globe Philippines Globe Philippines 

Net income for the first quarter stood at PHP 5.2 billion, a 15% decline compared to the same period last year. This drop was attributed to higher depreciation expenses and network costs as Globe continues to expand and upgrade its infrastructure. The company emphasized that these investments are crucial for maintaining service quality and meeting growing demand for data services. Globe Philippines 

Additionally, Globe disclosed significant progress in its tower sale and leaseback initiative. The company has successfully completed multiple closings, transferring a total of 7,506 towers to various partners, which has so far raised PHP 51.9 billion. This move is part of Globe's strategy to optimize capital expenditure and enhance operational efficiencies. Globe Philippines 

In terms of capital expenditures, Globe announced a reduction to PHP 55 billion for 2024, a decrease from PHP 70.6 billion in 2023. This reduction aligns with Globe's strategy to achieve positive cash flow by 2025, balancing the need for network investments with financial sustainability.

Overall, Globe Telecom's 1Q 2024 results reflect its resilience and strategic focus on long-term growth, despite facing immediate financial pressures. The company remains committed to enhancing its network infrastructure and delivering superior service to its customers while navigating the complex economic environment.

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