Globe, a mobile operator in the Philippines, remains optimistic about achieving positive cash flow by 2025. The company continues to streamline its expenditures, aligning with a strategic plan to reduce capital expenditure (capex).
The company is on course to meet its 2025 financial targets, which are critical to maintaining its robust market position. Globe has projected a modest revenue growth of low to mid-single digits for this year, following a record-breaking performance in 2023. This forecast is supported by a sustained demand for data-related services, a key growth driver for the telecom giant.
“Despite economic challenges impacting consumer spending, we are maintaining our guidance for Full Year 2024,” said Rizza Maniego-Eala, chief finance officer of Globe. “This approach aligns with our goal to optimize spending and remain on track to achieve positive free cash flow by 2025.”
For 2024, Globe aims for an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin of 50%. The company also plans to limit its cash capex to around $1 billion, a 23% reduction from the previous year’s investment. This aligns with Globe’s ongoing efforts to manage its capital expenditures more effectively.
The first quarter of the year saw Globe maintaining its upward trajectory, with consolidated gross service revenue increasing by 3% to P41.1 billion. This growth was largely fueled by strong performances in the mobile and corporate data sectors. Globe’s consolidated EBITDA rose by 4% to P21.4 billion, enhancing its EBITDA margin from 51% to 52%, surpassing the full-year target.
The company’s disciplined approach to capex is evident in its 2024 guidance. As of March, Globe’s cash capex spending stood at P13.7 billion, marking a significant 22% reduction compared to the same period last year.