Globe Telecom (GLO) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated gross service revenues of PHP 165 billion in 2024, up 3% year-over-year, led by data-related revenues despite inflation and typhoon impacts.

• EBITDA reached an all-time high of PHP 86.8 billion, up 7% year-over-year, with margin improving to 53%.

• Core net income after tax rose 16% year-over-year to PHP 21.5 billion, the second highest in company history, driven by strong data and fintech contributions.

• Mynt (GCash) contributed 12% to pre-tax net income, with strong user and transaction growth and expanding product lines.

• Board approved a PHP 25 per share quarterly cash dividend for Q1 2025, reaffirming a sustainable dividend policy.

Financial highlights

• Mobile business generated PHP 116.7 billion in revenues, surpassing 2023's PHP 112.4 billion, with mobile data revenues at PHP 97.4 billion, up 7% year-over-year.

• Home broadband revenues at PHP 23.8 billion, down 5% year-over-year, but fiber revenues rose 2% and fiber subscribers increased 16%.

• Corporate data revenues reached PHP 20.4 billion, up 11% year-over-year, driven by ICT and core data services.

• Non-telco revenues fell 12% to PHP 2.6 billion, reflecting ECPay deconsolidation; equity share in affiliates surged 61% to PHP 4.5 billion.

• Operating expenses and subsidy declined 2–3% year-over-year, supporting margin expansion.

Outlook and guidance

• Service revenues expected to grow low to mid-single digits in 2025, with EBITDA margin guidance at around 50%.

• CapEx spending to be reduced to less than $1 billion in 2025, aiming for positive free cash flow.

• Focus on capital efficiency and sustainable free cash flow.