#Globe is optimistic about achieving a positive cash flow by 2025. This optimism stems from its ongoing efforts to optimize expenditure in alignment with its strategic capital expenditure reduction plan.
Globe is unwavering in its commitment to meet key financial targets and maintain strong performance across all operational aspects, keeping it on track for its 2025 goal.
For the current year, Globe forecasts a low to mid-single-digit revenue growth from the record-breaking levels of 2023. This growth is expected to be fueled by the continued demand for data-related services. The company also aims for an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin of 50% and anticipates its cash Capital Expenditure (capex) to be around $1 billion, marking a 23% reduction from last year’s investment.
"Despite the economic challenges that impact consumer spending, we are maintaining our guidance for the Full Year 2024. This approach aligns with our objective to optimize spending and stay on course to achieve positive free cash flow by 2025,” stated Rizza Maniego-Eala, Globe’s Chief Finance Officer.
Globe continues to maintain its positive trajectory, reporting a consolidated gross service revenue growth of 3%, amounting to Php 41.1 billion in the first quarter of the year. This performance was propelled by the strong momentum in the mobile and corporate data businesses.
Conversely, the company’s consolidated EBITDA rose by 4% to Php 21.4 billion, reflecting a 3% increase in the topline. The EBITDA margin improved from 51% to 52%, exceeding the full-year guidance of 50%.
For 2024, Globe has set a cash Capital Expenditure (capex) guidance of $1 billion. This marks a strategic reduction from previous years’ peak levels, with an aim to go even lower in 2025.
As of the end of March, Globe’s cash capex spending reached Php13.7 billion, reflecting a significant 22% reduction compared to the same period last year.
Globe’s robust financial performance in the first quarter and its disciplined capex management demonstrate its commitment 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.
To learn more about Globe, visit their official website.
FAQs
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What is Globe’s financial target for 2025? Globe is optimistic about achieving a positive cash flow by 2025.
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What is Globe’s projected revenue growth for this year? Globe forecasts a low to mid-single-digit revenue growth from the record-breaking levels of 2023.
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What is Globe’s EBITDA margin target? The company aims for an EBITDA margin of 50%.
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What is Globe’s cash Capital Expenditure (capex) for 2024? Globe has set a cash Capital Expenditure (capex) guidance of $1 billion for 2024.
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How much has Globe spent on cash capex as of the end of March? As of the end of March, Globe’s cash capex spending reached Php13.7 billion.