Globe reports strong financial performance in Q1 2024

By Francis Allan L. Angelo

Globe Telecom Inc. announced a robust financial performance for the first quarter of 2024, with significant growth in its mobile and corporate data sectors driving a 3% year-over-year increase in revenues to P41.1 billion.

The company’s EBITDA rose by 4% to P21.4 billion, with an EBITDA margin of 52%, exceeding initial guidance. Globe’s consolidated net income after tax (NIAT) also showed an impressive increase, with normalized and core NIAT both up by 13% year-over-year to P5.8 billion.

“Despite economic challenges impacting consumer spending, our mobile business has shown unwavering growth,” Globe President and CEO Ernest L. Cu said in a disclosure.

Cu highlighted that mobile revenues surged by 8% to P29.1 billion, driven by a 10% increase in mobile data revenues, which now account for 85% of the company’s total consolidated gross service revenues.

The company’s corporate data business continued its growth trajectory with revenues reaching P5.0 billion, up 10% from last year. This growth reflects the company’s ongoing commitment to digital transformation and catering to the needs of enterprise clients.

However, home broadband revenues experienced a decline, falling 6% to P6.1 billion, impacted by a drop in fixed wireless. This was partially offset by growth in the postpaid fiber segment, which now represents 84% of home broadband and showed a 3% increase in subscribers and revenues year-on-year.

Globe also announced notable achievements in its sustainability efforts, being the first publicly-listed Philippine company to have its net-zero science-based targets validated and approved by the Science Based Targets initiative (SBTi).

Investments in capital expenditure for Q1 were P13.7 billion, down 22% from the previous year, aligning with the company’s strategic focus on optimizing capital deployment. This includes significant investments in the data needs of their customer base, ensuring accessibility to essential digital services.

As Globe continues to navigate through the digital landscape, Cu remains optimistic about the future. “Guided by a clear strategic focus on innovation and customer-centricity, we are confident in our ability to overcome challenges and seize opportunities to create a brighter, more connected future for the Philippines,” he added.

This strong quarterly performance sets a positive tone for Globe as it continues to innovate and expand its offerings in the rapidly evolving telecom landscape.