Globe Telecom announced its fourth quarter and full-year 2024 financial results, highlighting record service revenues, strong profitability, and the significant contribution of its digital finance arm, Mynt. The company emphasized its focus on operational efficiency and achieving positive free cash flow.
Globe achieved record service revenues of ₱165.0 billion, a 2% year-on-year increase. This growth was fueled by robust performance in both its mobile and corporate data segments. Mobile revenues reached ₱116.7 billion, up 4% year-on-year, driven by a surge in mobile data usage, which generated a record ₱97.4 billion, a 7% increase. Corporate data also performed strongly, with revenues reaching ₱20.4 billion, up 11%.
Profitability was a key highlight, with EBITDA reaching a record ₱86.8 billion, a 7% increase year-on-year. This resulted in an EBITDA margin of 52.6%, exceeding the company's guidance. Normalized net income after tax (NIAT) rose by 13% to ₱21.7 billion, while core NIAT increased by 14% to ₱21.5 billion.
A major contributor to Globe's bottom line was Mynt, the operator of GCash. Mynt's exceptional performance accounted for 12% of Globe's net income before tax, demonstrating the growing importance of the company's digital finance initiatives.
While mobile and corporate data drove revenue growth, Globe also noted positive momentum in its home broadband business, with GFiber Prepaid showing steady growth and increasing customer adoption. The overall home broadband segment also demonstrated improving sequential performance.
Globe demonstrated fiscal discipline in 2024, reducing capital expenditures (CAPEX) by 20% year-on-year to ₱56.2 billion, in line with its guidance. Looking ahead to 2025, the company expects CAPEX to be below US$1 billion, reinforcing its commitment to generating positive free cash flow.
This performance underscores Globe's ability to navigate a competitive market and capitalize on the growing demand for data and digital financial services. The company's focus on operational efficiency and strategic investments appears to be paying off, positioning it for continued growth and profitability. Investors will likely be watching closely to see if Globe can maintain this momentum and achieve its free cash flow targets in 2025.
For more detailed information, please refer to the official press release on Globe's Investor Relations website: https://www.globe.com.ph/about-us/investor-relations.html
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