Globe Telecom Inc. said it is on track to positing positive free cash flow, driven by reduced capital expenditures (capex) of under $1 billion.
Free cash flow refers to the amount of cash remaining after a company covers its investments needed to grow the business.
“Our focused approach to capex, coupled with the ongoing optimization of our network, has enabled us to achieve strong income growth and improved free cash flow. We are excited to continue building on this momentum in 2025,” Globe president and chief executive Ernest Cu said.
Globe’s capex for the year amounted to P56.2 billion, down 20-percent decrease from the previous year, and remained within its full-year guidance.
About 90 percent of the capex was directed towards data-related investments, ensuring that Globe’s network infrastructure continues to meet growing demand for digital services.
The capex-to-revenue ratio decreased from 44 percent in 2023 to 34 percent in 2024, reflecting Globe’s prudent capital allocation strategy.
Meanwhile, Globe’s total debt slightly decreased from P250 billion in 2023 to P249.5 billion in 2024. The key gearing ratios for this period include a gross debt to EBITDA of 2.66x, net debt to EBITDA of 2.43x, and a debt service coverage ratio of 3.42x.
Globe said it remains confident in its ability to achieve its financial objectives, with a disciplined approach to investments and a strong focus on operational efficiencies.
The telecom arm of the Ayala Group posted a net income of P24.3 billion in 2024, down by 1 percent from P24.6 billion in 2023.
Excluding the one-time gain from the tower sale, normalized net income would have reached P21.7 billion, reflecting a 13 percent increase from the previous year.
Globe’s core net income, on the other hand, expanded by 14 percent year-on-year, attaining P21.5 billion by the close of 2024.
The company’s consolidated gross service revenues reached P165 billion, a 2 percent increase compared to 2023.