As Globe Telecom releases its third-quarter and nine-month 2024 financial results, the company’s performance reflects impressive resilience and strategic focus in an ever-evolving telecommunications landscape. With record-breaking service revenues, sustained growth in data-driven segments, and an eye toward sustainable operations, Globe is well on track to meet its full-year financial targets. Here’s a closer look at Globe’s financial highlights, strategic initiatives, and growth outlook.
Record-Breaking Financial Performance
Globe’s financial results for the third quarter of 2024 are marked by several new records and year-on-year growth. Key achievements include:
- Service Revenues: Globe recorded an all-time high of ₱124.0 billion in service revenues, a 2% increase year-on-year. This is largely driven by a strong performance in mobile and corporate data.
- EBITDA: The company’s EBITDA rose by 7% to ₱64.9 billion, reaching a 52% EBITDA margin—well above its guidance level.
- Net Income: Globe’s normalized Net Income After Tax (NIAT) grew by 20%, reaching ₱17.8 billion, while core NIAT increased by 19%.
Mobile and Corporate Data: Key Growth Drivers
The mobile business continues to be a cornerstone of Globe’s revenue, with mobile business revenues hitting a record ₱87.7 billion. This growth was primarily driven by a 9% increase in mobile data revenues, which reached ₱72.9 billion. As demand for data grows, Globe’s ability to scale its mobile services and keep up with customer demand has proven essential to its success.
In addition to mobile, Globe’s corporate data revenues rose by 14% year-on-year to an unprecedented ₱15.5 billion. The growth in corporate data reflects Globe’s strategic push to provide reliable digital services to businesses across the Philippines, further solidifying its position in the digital transformation space.
The Role of Mynt in Driving Financial Success
Globe’s fintech venture, Mynt, has become a notable contributor to the company’s bottom line. Mynt played a key role in boosting Globe’s net income before tax, contributing 14% of total pre-tax earnings. This growth highlights the value of Mynt in diversifying Globe’s revenue streams and underscores the importance of fintech in Globe’s long-term strategy.
Strategic Shift Toward Prepaid Fiber
In recent quarters, Globe has shifted focus to prepaid fiber offerings as part of its broader strategy to increase customer engagement and accessibility. This move has been met with a strong response from consumers, who are seeking affordable and flexible internet solutions. Globe’s efforts to expand its prepaid fiber services indicate its commitment to catering to a more diverse customer base, further strengthening its market position.
Optimized Capital Utilization and Reduced CAPEX
With a focus on capital optimization, Globe reduced its cash capital expenditures by 24% to ₱41.0 billion, aligning with its strategic goal of positive free cash flow by 2025. This shift in CAPEX spending allows Globe to balance growth investments with efficient capital use, which is essential for long-term financial sustainability.
Commitment to Sustainability
Beyond financial performance, Globe’s commitment to Environmental, Social, and Governance (ESG) standards remains steadfast. Globe has achieved the MSCI ESG “AA” rating for the second consecutive year, reflecting its dedication to sustainable practices. Additionally, the company received the Golden Arrow Award from the Institute of Corporate Directors for the third time, recognizing its high standards of corporate governance.
Latest Changes in Leadership: CONGRATULATIONS!
Looking Ahead
As Globe heads into the final quarter of 2024, the company’s robust financial position and strategic initiatives suggest a strong finish to the year. Globe’s diversified revenue streams, focus on capital efficiency, and commitment to ESG practices put the company in an advantageous position for sustained growth.
With Globe’s proactive approach in responding to evolving market demands and consumer preferences, it is clear the company is committed to driving digital and economic growth in the Philippines. Whether through fintech innovations, increased data services, or sustainable operations, Globe continues to set a standard in the industry, showing that growth and responsibility can go hand in hand.
Globe’s strong performance serves as a testament to its ability to adapt, innovate, and thrive, even in a highly competitive market. As 2024 comes to a close, Globe’s financial stability and strategic vision offer a promising outlook for the years ahead.
The recent 3Q24 Globe Financial Media Briefing was hosted by Lisa Reyes, who guided the session, setting the online meeting for an insightful discussion on Globe’s latest financial and operational achievements. Yoly Crisanto, Chief Sustainability and Corporate Communications Officer at Globe Group, led the briefing, emphasizing Globe’s commitment to sustainable practices and corporate responsibility.
Ernest Cu, President and CEO of Globe Telecom, joined the panel, sharing valuable insights into Globe’s growth strategy and strong financial results. Additional panelists included Darius Jose Delgado, Carlo Puno, Carlo Malana, Froilan Castillo, Joel Agustin and Abigail Gardino, who provided expertise on operations, financial performance, and customer engagement. Together, they highlighted Globe’s record-breaking service revenues, growth in mobile and corporate data, and the shift towards prepaid fiber, with a focus on capital efficiency and achieving positive free cash flow by 2025.
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