Globe Telecom Inc. said Friday net income slightly fell in 2024 because of fewer cell tower sale and leaseback (SLB) transactions and increased depreciation expenses.
The telecom unit of the Ayala Group posted a net income of P24.3 billion last year, down by 1 percent from P24.6 billion in 2023.
“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,” Globe said.
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 expanded by 14 percent year-on-year, attaining P21.5 billion by the close of 2024.
“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,” Globe president and chief executive Ernest Cu said.
“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,” he said.
Globe recorded consolidated gross service revenues of P165 billion, a 2-percent growth compared to 2023.
The mobile business generated P116.7 billion in revenues in 2024, surpassing the previous high of P112.4 billion in 2023, supported by the effective data monetization and market repair efforts.
The corporate data business posted P20.4 billion in revenues or 11-percent increase compared to the year earlier.
While the home broadband business generated P23.8 billion in revenues, a 5-percent decline year-on-year, primarily due to the reduced contribution of fixed wireless services as more customers transitioned to fiber.
Non-telco revenues fell 47 percent year-on-year from P4.9 billion in 2023, due to sharp decline resulted from the deconsolidation of ECPay after the sale of a 77-percent stake to Mynt.
Total operating expenses (including subsidy) fell 3 percent from P80.9 billion in 2023 to P78.2 billion in the current reporting period.
Globe’s full-year cash capital expenditures (capex) in 2024 reached P56.2 billion, a 20-percent decrease from 2023. This strategic reduction aims to optimize capital utilization and achieve positive free cash flows by 2025.
Globe constructed 1,212 new cell sites and enhanced 4,613 existing mobile sites with LTE technology as of end-December 2024.
The company also deployed 67,456 fiber-to-the-home (FTTH) lines to bolster its fiber network. This rollout prioritized the optimization of existing fiber resources, in consideration of reduced capital expenditures.
Globe added 587 new 5G sites across the Philippines in 2024, achieving 98.69 percent coverage in the National Capital Region and 96.95 percent in key cities within the Visayas and Mindanao regions.
The expansion now brings 5G connectivity to about 106 towns. The company’s efforts resulted in over 9 million devices connected to its 5G network for the month of December 2024.
Globe also established 5G partnerships with 168 inbound and 182 outbound global partners in 99 destinations, further solidifying its position in the global market.
