Globe Telecom (GLO) Q3 2024 earnings summary

Executive summary

• Gross service revenues reached PHP 124 billion for the first nine months of 2024, up 4% year-on-year, with mobile and corporate data as main growth drivers.

• EBITDA grew 8% year-on-year to PHP 64.9 billion, with a margin above 52%, exceeding guidance.

• Core net income after tax surged 22% year-on-year to PHP 17.6 billion, driven by business performance and cost management.

• Mynt's (GCash) equity share more than doubled to PHP 3.7 billion, now accounting for 14% of net income before tax.

• Leadership transitions include the appointment of Carl Raymond Cruz as Deputy CEO effective January 2025, with succession to CEO planned for April 2025.

Financial highlights

• EBITDA margin sustained above 52%, exceeding full-year guidance.

• Capital expenditures for 9M24 were PHP 41 billion, down 24% year-on-year, with 91% focused on data-related projects.

• Free cash flow after interest at PHP 13.2 billion; excluding tower sale proceeds, negative PHP 14.1 billion, improved from negative PHP 28.9 billion in 2023.

• Gross debt to EBITDA improved to 2.54x; net debt to EBITDA at 2.30x; debt service coverage ratio at 1.65x.

• Operating expenses and subsidy stable at PHP 59.1 billion for nine months, down 2% year-on-year.

Outlook and guidance

• Service revenues expected to grow low to mid-single digits versus 2023, with EBITDA margin guidance maintained at 50%.

• CapEx to drop to $1 billion in 2024, with further reductions targeted for 2025.

• Free cash flow expected to turn positive by 2025 as CapEx and PO issuances are reduced.

• Full-year financial targets remain on track despite normalization in home broadband and ECPay deconsolidation.