GLOBE Telecom Inc. is optimistic about achieving positive free cash flow by 2025 despite economic challenges.
For this year, Globe has set a guidance of low-to-mid single-digit revenue growth; earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 50 percent; and capital expenditure (capex) of around $1 billion, which is 23 percent lower than last year.
“Despite economic challenges impacting consumer spending, we are maintaining our guidance for full year 2024. This approach aligns with our goal to optimize spending and remain on track to achieve positive free cash flow by 2025,” said Rizza Maniego-Eala, Globe chief finance officer.
Globe reported a 3-percent revenue growth to P41.1 billion in the first quarter of the year, driven by sustained growth in mobile and corporate data businesses.
The company’s consolidated EBITDA rose by 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.
As of the first quarter of the year, Globe spent P13.7 billion which is 22 percent lower than last year. This is aligned with its capex guidance of $1 billion, marking a strategic reduction from the previous year’s peak levels, and targeting even lower in 2025, the company said.
Meanwhile, Globe assured full cooperation to a government audit of its subscriber identity module (SIM) registration database amid rampant text scams.
“We’re halfway into the second year of the implementation of the SIM Registration Act, and the DICT’s (Department of Information and Communications Technology) call is timely. We take this as an opportunity to show our efforts in ensuring that our SIM registration data have been validated,” said Darius Delgado, Globe vice president and head of consumer mobile business.
He pointed out that most scam messages now reaching mobile users are sent outside telco networks. These instead use over-the-top media services or chat apps, Rich Communication Services chats for Android users, other Internet-based messaging platforms, and fake cell towers.
Globe also renewed its call for the full implementation of the National ID system to standardize the type of ID accepted for SIM registration, adding credibility to the process.
Currently, the law allows the use of various types of government-issued IDs that may be prone to tampering and at worse, fake, it added.
GCash has been tapped to pilot test the government’s National ID eVerify Platform, which will authenticate the identities of public and private sector customers in various transactions. Globe unit G-Xchange Inc. operates GCash.
