GLOBE ended 2024 with strong results, setting a new record consolidated gross service revenues of ₱165 billion, reflecting a steady 2% growth compared to 2023. This milestone was achieved despite headwinds from home broadband normalization, the ECPay deconsolidation, and the prolonged impact of inflation, compounded by the devastating typhoons in the latter half of the year that weighed on consumer spending.
The mobile and corporate data businesses were key drivers of this performance, contributing a combined 83% to total consolidated gross service revenues, up from 81% in the previous year. Notably, mobile revenues increased by 4%, while corporate data revenues surged by 11% in comparison to 2023.
The shift towards data-driven services continues, with data revenues now representing 86% of consolidated gross service revenues, up from 83% in the prior year. Assuming the deconsolidation of ECPay2 from Globe's books in the full year of 2023, consolidated gross service revenues would have grown by 3% on a comparable basis.
The mobile business generated a robust ₱116.7 billion in revenue for the full year 2024, surpassing the previous high of ₱112.4 billion in 2023, supported by the effective data monetization and market repair efforts. This was also bolstered by the continued network enhancements, leading to increased competitiveness and customer appeal.
Consequently, mobile revenues now represent 71% of total consolidated gross service revenues, compared to 69% in 2023. Globe’s mobile customer base also expanded, ending 2024 with 60.9 million subscribers, compared to 57.0 million a year ago.
Mobile data revenues also hit an all-time high of ₱97.4 billion as of end-December 2024, up by 7% from last year. This upward trend in mobile data revenues was largely driven by Filipinos' growing preference for the use of mobile applications to perform their various online activities.
Mobile data now constitutes a larger portion of mobile revenues, rising from 81% in 2023 to 83% in 2024. Mobile data traffic also grew to 6,351 petabytes, compared to 5,960 petabytes in 2023. In contrast, traditional mobile voice and SMS revenues saw a decline of 6% and 16% respectively, as consumers increasingly transition their communication habits to data-focused platforms.
Meanwhile, the corporate data business posted record ₱20.4 billion revenues or 11% increase compared to the year earlier. This was driven by a 15% increase in Information and Communication Technology (ICT) and a 9% increase in core data services. Business Applications Solutions (BAS) and cybersecurity services were key drivers to ICT revenue performance, posting year-on-year improvements of 29% and 4%, respectively.
This result is a testament to the company’s continuous commitment to excellence in delivering cutting-edge digital solutions tailored to the evolving needs of its business clients.
In addition, Globe continued to strengthen its home broadband business, focusing on optimizing offerings to align with changing market demands while driving long-term growth. The home broadband business generated ₱23.8 billion in revenues, which showed a 5% decline year-on-year, primarily due to the reduced contribution of fixed wireless services as more customers transitioned to fiber. Fiber services continued to grow, with revenues rising by 2% and subscriber count increasing by 16%, fueled by the strong adoption of GFiber Prepaid (GFP). This strategic transition delivered positive results, as evidenced by the marked increase in fixed-wired subscribers (13% annually).
Although fixed wireless revenue remains on a downward trend, the rate of decline is easing, and the growing momentum of GFP presents a promising opportunity for future broadband revenue expansion. Notably, the fourth quarter showed signs of recovery, with broadband revenues rising by 2% and subscriber count expanding by 3% compared to the third quarter.
Furthermore, GFP continues to gain traction as the fastest-growing prepaid fiber brand, reaching 260,000 subscribers with a 74% quarter-on-quarter growth. GFP continues to build strong customer loyalty and trust highlighted by high customer engagement, with reload rates of 78%, the highest across all prepaid brands.
This growing demand for flexible and affordable prepaid fiber services underscores the effectiveness of Globe’s customer acquisition strategy and its commitment to providing seamless connectivity solutions.
Globe's home broadband subscriber base ended the year with 1.74 million compared to last year’s 1.75 million subscribers.
Non-telco revenues also decreased significantly, falling 47% year-on-year from the ₱4.9 billion recorded at the end of 2023. This sharp decline resulted from the deconsolidation of ECPay after the sale of a 77% stake to Mynt. However, adjusting the 2023 figures to reflect this deconsolidation reduces the impact to a 12% year-on year drop.
Total operating expenses (including subsidy), fell 3% from ₱80.9 billion as of December 2023 to only ₱78.2 billion in the current reporting period. This decline resulted from the company's cost-saving measures as well as the deconsolidation of ECPay. Reduced spending in various areas, such as staff costs, marketing, provisions, repairs & maintenance and other expenses, contributed to opex savings for the year. If ECPay had been deconsolidated from Globe's books for the full year of 2023, the total operating expenses (including subsidy) would have been lower by 2%.
Consolidated EBITDA reached a new high of ₱86.8 billion, a 7% increase from the previous year's record of ₱81.4 billion. This was due to a 2% rise in consolidated gross service revenues and a 3% reduction in operating expenses, including subsidy. The company's EBITDA margin finished the year very strongly at 52.6%, surpassing the full-year guidance of 50%.
Mynt, Globe's fintech arm, maintained its upward momentum throughout 2024, solidifying its position as the dominant cashless ecosystem in the Philippines. GCash, the preferred platform for digital financial services, expanded its user base and profitability, providing Filipinos with access to a wide range of financial tools to empower their financial journeys. Globe’s share in Mynt’s equity earnings for the full year of 2024 reached a record ₱3.8 billion, a 59% increase from ₱2.4 billion last year. This represents a 12% contribution to Globe’s pre-tax net income, a notable increase compared to 7% in 2023.
Globe's net income stood at ₱24.3 billion this period, slightly down by 1% from ₱24.6 billion in the preceding year. This decline was primarily due to lower Sale and Leaseback (SLB) closings in 2024, which impacted one-time gains from tower sales. Additionally, higher depreciation expenses and non-operating charges further weighed on performance, offsetting the strong EBITDA growth. Excluding the one-time gain from the tower sale, normalized net income would have reached ₱21.7 billion, reflecting a 13% increase from the previous year.
Accordingly, excluding the impact of non-recurring charges, foreign exchange, and mark-to-market charges, Globe's core net income expanded by a solid 14% year-on-year, attaining ₱21.5 billion by the close of 2024. On a comparable basis, if ECPay had been deconsolidated from Globe's books for the full year of 2023, core net income would have grown by 16%.
Globe's balance sheet remained healthy, comfortably satisfying bank covenants. Total debt slightly improved from ₱250.0 billion in 2023 to ₱249.5 billion in 2024. Globe's key gearing ratios for this period include Gross debt to EBITDA of 2.66x, Net debt to EBITDA of 2.43x, and debt service coverage ratio of 3.42x.
"Globe's 2024 performance showcased both resilience and adaptability in an evolving digital landscape. Our robust EBITDA, strong business model, and significant growth in Core NIAT are a testament to our ability to thrive in this dynamic market," said Ernest L. Cu, President and CEO of Globe Telecom Inc.
“As a leading digital company, we remain committed to driving digital transformation in the Philippines. The strong results we delivered in 2024 serve as a strong foundation to propel our momentum into 2025. By prioritizing network enhancements, pioneering digital innovations, and fortifying our core telco business, we are well-positioned to expand our market presence and create greater value for our stakeholders,” Cu added. PR
