Cu wraps up Globe stint with strong growth

Ernest L. Cu is ending his time as Globe’s president and CEO on a high note, wrapping up a tenure defined by solid growth and impressive results for the telecom giant.

In a media briefing on Friday, Cu reported that Globe reached all-time high revenues and profitability last year, especially in its mobile, corporate data and broadband sectors.

“All I can say is I’m really happy to conclude my tenure as CEO of Globe on a very high note,” Cu said. “We got results not only for Globe but across all of our portfolio companies.”

Standout achievement

A standout achievement was Globe’s broadband turnaround after years of struggle.

“It’s the first time in over three years that the growth in the business has been able to overcome the decline in the legacy segment,” Cu explained.

For 2024, Globe posted P165 billion in consolidated gross service revenues, a 2 percent year-on-year increase. Mobile and corporate data, which made up 83 percent of total revenues, led the charge.

EBITDA surged to a record P86.8 billion, a seven percent rise from last year, with an EBITDA margin of 52.6 percent, exceeding the 50 percent target.

Normalized net income after tax grew 13 percent to P21.7 billion, while core net income rose 14 percent to P21.5 billion, reflecting strong cost management and strategic investments.

Major drivers

Mobile and corporate data were major drivers, with mobile revenues rising 4 percent and corporate data up 11 percent. Data services are growing rapidly, now making up 86 percent of total revenues, up from 83 percent last year.

Mobile generated P116.7 billion, beating 2023’s P112.4 billion, driven by data monetization and network upgrades.

Mobile revenues now account for 71 percent of total revenues, up from 69 percent last year. Globe’s mobile base grew to 60.9 million, up from 57.0 million, and mobile data revenues hit P97.4 billion, a seven percent increase.

In corporate data, Globe achieved a record P20.4 billion in revenues, an 11 percent increase, largely from a 15 percent rise in ICT revenues, including a 29 percent jump in Business Applications Solutions.

Globe’s home broadband business brought in P23.8 billion, a five percent decline, largely due to the shift from fixed wireless to fiber. Fiber services grew two percent, with subscribers up 16 percent.

Pre-cash flow positive

“We are on track with our objective to become pre-cash flow positive by 2025,” Cu said, adding that the company is focused on reducing capex and optimizing capital use.

As Cu prepared to transition, he expressed confidence in the company’s future leadership.

“I always have regular discussions on this and I think Carl (Carl Raymond R. Cruz) also sees that the business remains very strong,” Cu said. “It’s taking over a very sound company. A lot of focus should be on fine-tuning the business rather than very major changes that should happen.”

Cruz, who became deputy CEO in January after leading Airtel Nigeria, is set to be nominated as the next president and CEO at Globe’s annual stockholders meeting in April. Cu will remain in his role until then.