Globe Reports Progress Toward Positive Free Cash Flow
Globe Telecom Inc. announced that it is on track to achieving positive free cash flow, driven by a strategic reduction in capital expenditures (capex) to below $1 billion.
Free cash flow refers to the cash remaining after covering business investments, allowing for growth and financial flexibility.
“Our focused approach to capex, coupled with ongoing network optimization, has enabled us to achieve strong income growth and improved free cash flow. We are excited to continue building on this momentum in 2025,” said Globe President and CEO Ernest Cu.
Lower Capex, Higher Efficiency
Globe’s 2024 capex reached P56.2 billion, marking a 20% decrease from the previous year and aligning with its full-year guidance.
- 90% of capex was allocated to data-related investments, ensuring the network keeps up with rising digital service demands.
- The capex-to-revenue ratio dropped from 44% in 2023 to 34% in 2024, reflecting a more prudent capital allocation strategy.
Debt and Financial Performance
Globe’s total debt slightly declined from P250 billion in 2023 to P249.5 billion in 2024. Key gearing ratios for the period include:
- Gross debt to EBITDA: 2.66x
- Net debt to EBITDA: 2.43x
- Debt service coverage ratio: 3.42x
Despite a 1% drop in net income from P24.6 billion in 2023 to P24.3 billion in 2024, core net income rose 14% year-on-year, reaching P21.5 billion.
Excluding one-time gains from the tower sale, normalized net income hit P21.7 billion, reflecting a 13% increase from the previous year.
Meanwhile, consolidated gross service revenues grew 2% year-on-year, totaling P165 billion in 2024.
Confident Outlook
Globe Telecom remains optimistic about achieving its financial objectives, citing disciplined investments and operational efficiencies as key drivers for sustained growth.
