Globe Telecom over the weekend projected reverting to positive cash flow by 2025 as it optimizes spending in line with strategic cuts in capital expenditure.
The Ayala-led telco also committed to meet key financial targets and maintain robust performance across its operational fronts.
This year Globe projects low to mid single-digit revenue growth from record-breaking levels in 2023, buoyed by sustained demand for data-related services.
Globe also targets an earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 50 percent and anticipates its cash capital expenditure (capex) to be around $1 billion, 23 percent lower than last year’s investments.
“Despite economic challenges impacting consumer spending, we are maintaining our guidance for full year 2024,” Rizza Maniego-Eala, Globe chief finance officer, said.
The goal is to optimize spending and still be on track to achieve positive cash flow by 2025, she added.
Thus far, Globe has kept to the path and reported consolidated gross revenue growth of 3 percent reaching P41.1 billion in the first three months this year. The performance was driven by strong momentum in the mobile and corporate data businesses.
Consolidated EBITDA rose 4 percent to P21.4 billion, reflecting a 3 percent increase in the topline. The EBITDA margin improved from 51 percent to 52 percent, surpassing the full-year guidance of only 50 percent.
For this year, Globe has set a cash capex guidance of $1 billion, a strategic reduction from previous year’s peak and targets even lower capex in 2025.
As at end March this year, Globe’s cash capex totalled P13.7 billion, a 22 percent reduction compared to the same period last year.
Globe’s solid financial performance in the first quarter and its disciplined capex management reflect its dedication to operational excellence, capital efficiency, and customer satisfaction. The consistent revenue growth, improved EBITDA margins, and strategic investments underscore Globe’s leadership in the telecom industry.
