Globe on Monday projected mid-single digit growth in service revenues this year amid the macroeconomic headwinds.
“We have a guidance revenue growth of mid-single digit in 2023. It is the same guidance that we had in 2022, despite the major macroeconomic headwinds we are facing this year. We likewise gave guidance of maintaining our 50 percent EBITDA margin, which we will deliver by following through on our cost management initiatives,” Rizza Maniego-Eala, Globe chief finance officer said.
The company booked a four-percent rise in service revenues to a record high of P158 billion in 2022 from P152.3 billion in 2021, driven by mobile and corporate data services and increased revenue contribution of non-telco subsidiaries.
Globe revenues in the fourth quarter surpassed the P40 billion level for the first time in the company’s history.
On the bottom line, the company reported a 46 percent jump in net income and rounded the year at P34.6 billion from P23.7 billion in 2021.
Globe attributed the increase to the gains that the company recognized for the partial sale of its data center business, as well as the execution of the first few tranches of the sale and leaseback of its tower assets.
The Ayala-led telco is expecting more proceeds from the transactio this year, with the balance of the towers to be turned over progressively over the next few quarters.
In August last year, Globe sold more than 7,000 towers to MIESCOR Infrastructure Development Corp. (MIDC), Frontier Tower Associates Philippines, and PhilTower Consortium Inc. to improve its balance sheet health and finance its capital expenditures. It has so far raised P39 billion from the transactions.
To strengthen free cash flow generation starting this year, Globe is committing to a lower capital expenditure level of $1.3 billion and aims to further reduce this to $1 billion in 2024.
This optimization of capital spending and improvement in free cash flow will not be at the expense of service quality as the company will continue with its commitment to deliver a world-class network and an industry-leading customer experience.
