Globe expects low- to middle-digit revenue growth

BW FILE PHOTO

GLOBE Telecom, Inc. is expecting its revenue to grow by low- to middle-digit figures this year by strengthening its business segments, the Ayala-led telecommunications company said on Wednesday.

“As we move forward to 2024, we are very optimistic that we will achieve continued growth by executing well on our customer-focused strategy and enhancing innovations using digital solutions backed by our firm commitment to network excellence,” Ernest L. Cu, president and chief executive officer of Globe said during a briefing.

For 2023, the company registered a core net income of P18.92 billion, 1.3% lower than the P19.17 billion in 2022 due to lower revenues.

Globe saw full-year service revenues of P162.33 billion, marking a 4.5% increase compared to the P107.52 billion recorded a year earlier.

Broken down, home broadband recorded a 7.3% decrease to P25.11 billion from P27.09 billion; corporate data registered P18.32 billion, 6.5% higher than the P17.2 billion. Fixed-line voice revenues logged P1.6 billion, falling by 18.6% compared to P1.99 billion.

Other revenues recorded a 17.9% climb to P4.93 billion from P4.18 billion a year earlier.

Full-year operating expenses went up by 2.6% to P80.91 billion from P78.89 billion in 2022.

Rizza Maniego-Eala, Globe’s financial officer, anticipates its top line to post low- to middle-digit growth.

The company is setting aside $1 billion for its capital expenditures (capex), lower than the $1.3 billion earmarked in 2023, she said.

Its capex will be funded by internally generated funds, proceeds from its tower sales, and debts.

In 2023, Globe spent a total of P70.6 billion in capital expenditures, which is said to be 30% lower than previously.

“That’s why we’re also very happy and fortunate that the growth that we saw in 2023 was quite robust in relative terms to other telcos we see in the world. As far as expansion continues to explore solutions that we can provide to the Filipino public in terms of a digital service, that can ease the burden of daily life using the different assets that we have at Globe,” Mr. Cu said.

The company also expects the growth of its data centers to drive its profit upward, based on expectations of data center expansion.

ST Telemedia Global Data Centres (Philippines), a joint venture between Globe, Ayala Corp., and ST Telemedia Global Data Centres (STT GDC), will build its data centers in the country, expected to be operational by the first quarter of 2025 in Fairview, Quezon City.

Mr. Cu said that the company is also anticipating Globe Fintech Innovations, Inc. (Mynt), the parent firm of its electronic wallet platform GCash, to contribute to its growth as GCash aims to expand its reach.

At the local bourse on Wednesday, shares in the company fell by P22 or 1.26% to end at P1,728 apiece. — Ashley Erika O. Jose