Globe Telecom’s 2024 Consolidated Gross Service Revenues Jump by 2% to P165 Billion

Globe Telecom ended 2024 with strong results, setting a new record consolidated gross service revenues of P165.0 billion, reflecting a steady 2% growth compared to 2023. This milestone was achieved despite headwinds from home broadband normalization, the ECPay deconsolidation, and the prolonged impact of inflation, compounded by the devastating typhoons in the latter half of the year that weighed on consumer spending.

The mobile and corporate data businesses were key drivers of this performance, contributing a combined 83% to total consolidated gross service revenues, up from 81% in the previous year. Notably, mobile revenues increased by 4%, while corporate data revenues surged by 11% in comparison to 2023. The shift towards data-driven services continues, with data revenues now representing 86% of consolidated gross service revenues, up from 83% in the prior year. Assuming the deconsolidation of ECPay2 from Globe's books in the full year of 2023, consolidated gross service revenues would have grown by 3% on a comparable basis.

The mobile business generated a robust P116.7 billion in revenue for the full year 2024, surpassing the previous high of P112.4 billion in 2023, supported by the effective data monetization and market repair efforts. This was also bolstered by the continued network enhancements, leading to increased competitiveness and customer appeal. Consequently, mobile revenues now represent 71% of total consolidated gross service revenues, compared to 69% in 2023. Globe’s mobile customer base also expanded, ending 2024 with 60.9 million subscribers, compared to 57.0 million a year ago. Mobile data revenues also hit an all-time high of P97.4 billion as of end-December 2024, up by 7% from last year. This upward trend in mobile data revenues was largely driven by Filipinos' growing preference for the use of mobile applications to perform their various online activities. Mobile data now constitutes a larger portion of mobile revenues, rising from 81% in 2023 to 83% in 2024. Mobile data traffic also grew to 6,351 petabytes, compared to 5,960 petabytes in 2023. In contrast, traditional mobile voice and SMS revenues saw a decline of 6% and 16% respectively, as consumers increasingly transition their communication habits to data-focused platforms.

Meanwhile, the corporate data business posted record P20.4 billion revenues or 11% increase compared to the year earlier. This was driven by a 15% increase in Information and Communication Technology (ICT) and a 9% increase in core data services. Business Applications Solutions (BAS) and cybersecurity services were key drivers to ICT revenue performance, posting year-on-year improvements of 29% and 4%, respectively. This result is a testament to the company’s continuous commitment to excellence in delivering cutting-edge digital solutions tailored to the evolving needs of its business clients.

In addition, Globe continued to strengthen its home broadband business, focusing on optimizing offerings to align with changing market demands while driving long-term growth. The home broadband business generated P23.8 billion in revenues, which showed a 5% decline year-on-year, primarily due to the reduced contribution of fixed wireless services as more customers transitioned to fiber. Fiber services continued to grow, with revenues rising by 2% and subscriber count increasing by 16%, fueled by the strong adoption of GFiber Prepaid (GFP). This strategic transition delivered positive results, as evidenced by the marked increase in fixed-wired subscribers (13% annually).

Although fixed wireless revenue remains on a downward trend, the rate of decline is easing, and the growing momentum of GFP presents a promising opportunity for future broadband revenue expansion. Notably, the fourth quarter showed signs of recovery, with broadband revenues rising by 2% and subscriber count expanding by 3% compared to the third quarter. Furthermore, GFP continues to gain traction as the fastest-growing prepaid fiber brand, reaching 260,000 subscribers with a 74% quarter-on-quarter growth. GFP continues to build strong customer loyalty and trust highlighted by high customer engagement, with reload rates of 78%, the highest across all prepaid brands. This growing demand for flexible and affordable prepaid fiber services underscores the effectiveness of Globe’s customer acquisition strategy and its commitment to providing seamless connectivity solutions. Globe's home broadband subscriber base ended the year with 1.74 million compared to last year’s 1.75 million subscribers.

Non-telco revenues also decreased significantly, falling 47% year-on-year from the P4.9 billion recorded at the end of 2023. This sharp decline resulted from the deconsolidation of ECPay after the sale of a 77% stake to Mynt. However, adjusting the 2023 figures to reflect this deconsolidation reduces the impact to a 12% year-on year drop.

Total operating expenses (including subsidy), fell 3% from P80.9 billion as of December 2023 to only P78.2 billion in the current reporting period. This decline resulted from the company's cost-saving measures as well as the deconsolidation of ECPay. Reduced spending in various areas, such as staff costs, marketing, provisions, repairs & maintenance and other expenses, contributed to opex savings for the year. If ECPay had been deconsolidated from Globe's books for the full year of 2023, the total operating expenses (including subsidy) would have been lower by 2%. Consolidated EBITDA reached a new high of P86.8 billion, a 7% increase from the previous year's record of P81.4 billion. This was due to a 2% rise in consolidated gross service revenues and a 3% reduction in operating expenses, including subsidy. The company's EBITDA margin finished the year very strongly at 52.6%, surpassing the full-year guidance of 50%.

Mynt, Globe's fintech arm, maintained its upward momentum throughout 2024, solidifying its position as the dominant cashless ecosystem in the Philippines. GCash, the preferred platform for digital financial services, expanded its user base and profitability, providing Filipinos with access to a wide range of financial tools to empower their financial journeys. Globe’s share in Mynt’s equity earnings for the full year of 2024 reached a record P3.8 billion, a 59% increase from P2.4 billion last year. This represents a 12% contribution to Globe’s pre-tax net income, a notable increase compared to 7% in 2023. Globe's net income stood at P24.3 billion this period, slightly down by 1% from P24.6 billion in the preceding year. This decline was primarily due to lower Sale and Leaseback (SLB) closings in 2024, which impacted one-time gains from tower sales. Additionally, higher depreciation expenses and non-operating charges further weighed on performance, offsetting the strong EBITDA growth. Excluding the one-time gain from the tower sale, normalized net income would have reached P21.7 billion, reflecting a 13% increase from the previous year.

Accordingly, excluding the impact of non-recurring charges, foreign exchange, and mark-to-market charges, Globe's core net income expanded by a solid 14% year-on-year, attaining P21.5 billion by the close of 2024. On a comparable basis, if ECPay had been deconsolidated from Globe's books for the full year of 2023, core net income would have grown by 16%. Globe's balance sheet remained healthy, comfortably satisfying bank covenants. Total debt slightly improved from P250.0 billion in 2023 to P249.5 billion in 2024. Globe's key gearing ratios for this period include Gross debt to EBITDA of 2.66x, Net debt to EBITDA of 2.43x, and debt service coverage ratio of 3.42x.

"Globe's 2024 performance showcased both resilience and adaptability in an evolving digital landscape. Our robust EBITDA, strong business model, and significant growth in Core NIAT are a testament to our ability to thrive in this dynamic market." said Ernest L. Cu, President and CEO of Globe Telecom Inc.

“As a leading digital company, we remain committed to driving digital transformation in the Philippines. The strong results we delivered in 2024 serve as a strong foundation to propel our momentum into 2025. By prioritizing network enhancements, pioneering digital innovations, and fortifying our core telco business, we are well-positioned to expand our market presence and create greater value for our stakeholders.” Mr. Cu added.

Key Business Highlights: Full Year Cash Capex declined 20% YoY; Balancing Network Optimization and Financial Sustainability

Globe's full-year cash capital expenditures (capex) for 2024 reached approximately P56.2 billion, a 20% decrease compared to 2023. This strategic reduction aims to optimize capital utilization and achieve positive free cash flows by 2025. The cash capex to revenue ratio decreased from 44% in 2023 to 34% in 2024. Similarly, the cash capex to EBITDA ratio showed significant improvement, falling from 87% to 65% over the same period. Notably, 90% of the capex was invested in data requirements, ensuring uninterrupted access to digital solutions and connectivity services for Globe's customers. Globe's commitment to providing reliable and high-speed internet connectivity nationwide is demonstrated by its infrastructure expansion efforts. As of end-December 2024, Globe had constructed 1,212 new cell sites and enhanced 4,613 existing mobile sites with LTE technology. Additionally, the company deployed 67,456 fiber-to-the-home (FTTH) lines to bolster its fiber network. This rollout prioritized the optimization of existing fiber resources, in consideration of reduced capital expenditures.

For the full year of 2024, Globe added 587 new 5G sites across the Philippines, achieving 98.69% coverage in the National Capital Region and 96.95% in key cities within the Visayas and Mindanao regions. This expansion now brings 5G connectivity to approximately 106 towns. The company's efforts have resulted in over 9 million devices connected to its 5G network for the month of December 2024. Additionally, Globe has established 5G partnerships with 168 inbound and 182 outbound global partners in 99 Destinations, further solidifying its position in the global market.

Globe's ongoing investment in network infrastructure reflects its dedication to providing equal access to the digital economy for all communities in the Philippines. By enhancing and expanding its network, the company aims to support economic progress and innovation, aligning with its commitment to the United Nations' Sustainable Development Goal No. 9. This goal emphasizes the importance of strong infrastructure and innovation in driving economic development.

Recent Developments:

Tower Sale and Leaseback Deal:

● On 28 October 2024, Globe achieved the fifth closing of 25 towers sold to Unity for approximately P300 million.

● On 19 December 2024, Globe achieved the 6th closing of 19 towers for approximately P228 million. Cumulatively, Globe has closed 326 out of 447 towers to be acquired by Unity.

Overall, Globe has officially turned over the ownership of 6,672 towers out of 7,506 towers sold, raising ~P85.7 billion. This represents 88.9% of the total tower deal, with 2,410 towers transferred in 2022, 2,057 towers in 2023, and 2,205 towers in 2024.

Product Update:

● Just in time for the holidays, Globe at Home has unveiled its latest portfolio of offers, enticing broadband users to make the switch and enjoy reliable connection with their loved ones with even better GFiber plans plus exclusive holiday freebies. Globe at Home’s new GFiber portfolio delivers exceptional speeds from 300 Mbps to 1.5 Gbps, offering low latency at competitive monthly fees plus exclusive perks for the ultimate fiber experience.

● Globe At Home breaks new ground with a first-of-its-kind product for prepaid fiber customers, offering the flexibility to double their internet speeds to up to 100 Mbps whenever they choose. GFiber Prepaid offers flexible options of 7 days, 30 days, or even a full year. For example, users can enjoy speeds of up to 100 Mbps for 7 days at P399 or 30 days at P1,299, allowing them to tailor their internet experience to fit their usage needs and budget. For P699, users can get 30 days of UNLI internet at speeds of up to 50 Mbps.

● Globe recently launched its enhanced GoRoam UAE offering, designed to provide affordable and reliable connectivity to Filipinos living and working in the United Arab Emirates. The new GoRoam UAE offers a substantial increase in data allocation, providing 10 GB valid for 30 days, close to offers of local SIMs in the UAE. This ensures that OFWs can stay connected with family and friends in the Philippines while staying within budget. OFWs can access their favorite messaging apps without any restrictions via roaming, particularly voice and video calling services that are inaccessible in the UAE.

● Globe has expanded the reach of its country-exclusive offers at never-before-seen rates to popular destinations, including Japan, Canada, Vietnam, and Australia. GoRoam’s expansion builds upon its successful “Roam Like A Local” promos earlier launched in Hong Kong, Taiwan, Indonesia, UAE, Thailand, Malaysia, Singapore, South Korea, and the United States.

● GOMO, the brand shaking up the digital world, is enhancing your borderless life with its latest innovation: GOMO Fiber. For just P999, which includes the modem and one-time installation fee, you can get fiber-fast internet, plus a free seven-day trial of unlimited fiber, so you can instantly feel the difference whether you’re streaming, gaming, working from home, or binge-watching your
favorite show.

Data Center Update:

● STT GDC Philippines operates with an IT capacity of 22 MW. The Company is on track to achieve 33 MW by 2025, scaling further to 52 MW by 2026. This growth aligns with its commitment to meeting market demand while providing reliable, world-class infrastructure to its clients. With over 3,200 racks and an impressive 75% utilization rate (including contracted space), its operational performance reflects strong market confidence and robust sales pipelines.

● STT GDC Philippines is at the forefront of supporting AI workloads and will launch an AI Direct-to-Chip Liquid Cooling showroom in STT Makati on February 20, 2025.

● The STT Fairview project is progressing on schedule, with Phase 1B currently underway. The site will launch in the second quarter of 2025, starting with an anchor tenant, and will deliver 12 MW of IT load by the end of the year.

● The STT Cavite 2 construction has achieved structural completion in January 2025 and is set to be ready-for-service by late 2025.

Network Related Update:

● Globe has successfully deployed the Philippines' first fully functional Private 5G Network designed to address major operational pain points and challenges in different industries. Installed at a Globe facility in Makati City, this dedicated, on-premise wireless network showcases the potential of 5G to power advanced digital solutions that support critical functions with utmost reliability and efficiency.

● Globe is set to establish the first off-grid solar-powered cell site on Taganak Island in the Turtle Islands— a heritage-protected area and wildlife sanctuary in Tawi-Tawi —to bridge the digital divide in the remote area. The facility is expected to provide around 10,000 residents in the isolated islands with reliable mobile and data connectivity to support essential services, environmental protection, and economic growth. It is also seen to benefit visitors to the wildlife sanctuary, keeping them connected during their trip to the far-flung destination. The project is set for completion around mid-2025.

● Advancing network innovation and sustainability, Globe has started rolling out 32T32R Massive MIMO (Multiple Input, Multiple Output) technology for enhanced LTE capacity and 5G expansion in 200 dense urban areas, set for completion within the year. The cutting-edge solution from vendor partners including Nokia boosts efficiency and reduces energy consumption, marking a significant step in Globe’s commitment to increasing network capacity and delivering world-class service while minimizing its environmental impact.

● Qualcomm, in partnership with Amdocs, has announced a significant expansion of its RAN Automation platform, Edgewise, within Globe Telecom’s network. This includes Qualcomm’s cutting-edge AI-based Energy Efficiency Orchestration application, which has been operational nationwide at Globe for the past seven months and is powered by AWS Cloud infrastructure. To date, Qualcomm’s Edgewise Energy Saving Solution has achieved an impressive 4.2% reduction in energy consumption. This outcome underscores the tangible benefits of Qualcomm’s advanced technology in delivering substantial environmental and operational gains for telecom operators like Globe.

● Globe has successfully upgraded 450 cities and towns across the Philippines to fiber-optic technology, strengthening its commitment to providing top-tier connectivity to its wireline customers while promoting sustainability through energy-efficient, future-ready solutions. The migration, which entails replacing copper cables with fiber, covers towns and cities in at least 60 provinces across the country.

● Globe further strengthens its commitment to enhancing connectivity in Mindanao, building a new tower in Malaybalay City, and upgrading 16 sites across Bukidnon. The site upgrades were strategically implemented, with three each in Libona, Manolo Fortich, and Quezon; two each in Malaybalay City and Valencia City; and one each in Lantapan, San Fernando, and Maramag.

Key Portfolio Company Highlights: Non-telco revenues decreased by 47% YoY, while share in equity earnings increased by 65% YoY.

GCash remains the number one finance super-app and the largest digital cashless ecosystem in the country, bannered by ubiquity across its active user base. To complement its ubiquity across its consumers, GCash has also built the largest network of online and offline merchants and social sellers (over 6 million partners) while hosting over 1,000 merchant partners in its app, via GLife. Through the GCash App, customers can easily purchase prepaid airtime, pay bills nationwide, send and receive money anywhere in the Philippines, even to other bank accounts, and purchase from their partner merchants and social sellers.

For its commitment to digital financial inclusion, and for its work in increasing accessibility to innovative, meaningful, and responsive financial services that empower and uplift millions of Filipinos, GCash was recently named as part of Fortune’s prestigious inaugural Fintech Innovators Asia 2024 list.

Last year, GCash was also recognized by the Asia-Pacific Stevie Awards for the Innovative Use of Technology in Customer Service and for Innovation in Digital Transformation. Alongside this, GCash was given the Company of the Year Award for the Philippines’ Financial Technology Industry from leading global analysis and growth strategy consulting firm Frost & Sullivan. These awards recognize GCash’s pioneering use of digital solutions and innovative financial services and its strong overall achievements in the financial technology space.

GCash boasts of the most comprehensive suite of digital financial services, covering savings (via GSave), investments (via GFunds, GStocks, and GCrypto), and insurance products (via GInsure). On credit, backed by its proprietary trust platform and credit scoring via GScore, GCash has provided access to credit to over 7.8 million borrowers, of which the majority are from lower socio-economic classes and ⅔ are women. These milestones were achieved through game-changing lending products covering credit lines (GCredit), cash loans (GLoan), buy-now-pay-later (BNPL via GGives), and micro-credit starter loans (Sakto Loan and Borrow Load), providing loans to more Filipinos who need it the most.

In line with its financial inclusion mandate, GCash has gone beyond the nation’s borders and now offers payments in 51 countries through GCash Global Pay. In partnership with Alipay+, this feature offers a hassle-free travel experience abroad through a seamless and secure payment experience across various merchants through Scan to Pay. GCash also empowers overseas Filipinos in 16 countries to manage their finances through GCash Overseas, which allows them to use their international mobile number to register for the GCash App and gives them access to services such as Buy Load, Pay Bills, and Send Money.

Moving beyond transactions, GCash incorporates sustainability across its innovation initiatives. The GForest movement empowers users to accumulate green energy and plant trees by simply using GCash. To date, more than 3.9M trees have been planted and 163K tonnes of carbon dioxide have been avoided, enabling our users to build a greener tomorrow.

Meanwhile, Globe’s corporate venture builder, 917Ventures portfolio companies includes telehealth service platform and Brave Connective Holdings, Inc., which brings together under its umbrella the companies that will help businesses strengthen their connection with customers through the use of data, analytics, targeting, and storytelling.

Brave Connective Holdings, Inc. (BCHI)

● AdSpark, an award-winning and leading digital advertising agency that combines data-driven insightsthrough its proprietary DeepSea platform with the creative ingenuity of SecretMenu. By blending advanced analytics and innovative storytelling, AdSpark delivers impactful campaigns.

● iNQUiRO, a cutting-edge data analytics company that transforms insights into actionable intelligence for businesses. With innovative solutions and a commitment to empowering smarter decisions, Inquiro helps brands unlock growth and drive success.

● M360, a leading communications platform offering seamless, multi-channel solutions through its innovative One API. Empowering businesses with scalable messaging capabilities, m360 connects brands to their customers effectively and efficiently.

Key ESG Highlights: Building a Sustainable Future Through Positive Social and Environmental Impact

Globe’s Sustainability practice is anchored on Globe Purpose, “Uplift Filipino Lives Everyday”. By aligning with global sustainability frameworks, standards, and principles such as the United Nations’ Sustainable Development Goals (UN SDGs) and UN Global Compact and industry sustainability ambitions, the company is able to collaborate with its stakeholders to deliver positive societal and environmental impact. Globe is focused on addressing its material topics by scaling the integration of its sustainability practices within its business units, portfolio companies, and across the value chain.

Globe Telecom, Inc. is a leading digital platform in the Philippines, with major interests in telecommunications, venture capital and venture building, shared services and digital marketing solutions. The company serves the telecommunications and technology needs of consumers and businesses across an entire suite of products and services including mobile, fixed, broadband, data connectivity, internet and managed services.

In 2019, Globe became a signatory to the United Nations Global Compact, committing to implement universal sustainability principles. Its principals are Ayala Corporation and Singtel, acknowledged industry leaders in the country and in the region.
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It is listed on the Philippine Stock Exchange under the ticker symbol GLO and had a market capitalization of US$5.5 billion as of the end of December 2024.