Globe Telecom Inc. said over the weekend it is on track to achieving positive cash flow by 2025, as it continues to optimize spending in line with its strategic capital expenditure reduction.
The telecom arm of the Ayala Group also committed to meeting key financial metrics and maintain robust performance across its operational fronts.
Globe expects a low to mid-single-digit revenue growth this year from a record level in 2023, buoyed by the expected sustained demand for data-related services.
Globe targets earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 50 percent and anticipates its cash capital expenditure (capex) to be around $1 billion, or 23 percent lower than last year’s investment.
“Despite economic challenges impacting consumer spending, we are maintaining our guidance for full year 2024,” Globe chief finance officer Rizza Maniego-Eala said.
“This approach aligns with our goal to optimize spending and remain on track to achieve positive free cash flow by 2025,” Maniego-Eala said.
Globe is maintaining its positive trajectory, reporting a consolidated gross service revenue growth of 3 percent, reaching P41.1 billion in the first quarter of 2024. The performance was driven by the 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 top line. The EBITDA margin improved from 51 percent to 52 percent, surpassing the full-year guidance of 50 percent.
Globe set a capital expenditure (capex) guidance of $1 billion for 2024, marking a strategic reduction from previous year’s peak levels and targeting even lower in 2025.
Globe’s cash capex spending reached P13.7 billion as of end-March, reflecting a significant 22 percent reduction from the same period last year.
Globe said its solid financial performance in the first quarter and disciplined capex management reflect its dedication to operational excellence, capital efficiency and customer satisfaction.