Globe sees more core business growth in 2023
Published Mar 20, 2023 06:00 am
Globe Telecom Inc. expects more core business growth this year, with mid-single digit growth in overall service revenues versus the record level of 2022, the company announced Monday, March 20.
“We have a guidance of revenue growth of mid-single digit in 2023. It is the same guidance that we had in 2022, despite the major macroeconomic headwinds we are facing this year," said Chief Finance Officer Rizza Maniego-Eala.
The telco also intends to maintain its 50 percent margin for earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023. "We will deliver this by following through on our cost management initiatives” she added. Globe’s EBITDA inched up by six percent to an all-time high of P79.1 billion last year from P74.9 billion in 2021, with an EBITDA margin of 50 percent from 49 percent in 2021. The company also booked a four percent rise in service revenues to a record high of P158 billion in 2022 from P152.3 billion in 2021, driven by mobile and corporate data services and increased revenue contribution of non-telco subsidiaries.
Globe’s revenues in the fourth quarter surpassed the P40 billion level for the first time in the company’s history. On the bottomline, the company reported a 46 percent jump in net income, to end the year at P34.6 billion from P23.7 billion in 2021.
This increase was brought about by the gains the company recognized for the partial sale of its data center business, as well as the execution of the first few tranches of the sale and leaseback of its tower assets.
This year, Globe likewise expects more proceeds from the tower sale and leaseback initiative, with the balance of the towers to be turned over progressively over the next few quarters.
Last August, Globe decided to sell more than 7,000 towers to MIESCOR Infrastructure Development Corp. (MIDC), Frontier Tower Associates Philippines, and PhilTower Consortium Inc. to improve its balance sheet health and finance its capital expenditures.
So far, it has raised around P39.0 billion from the transactions. To strengthen free cash flow generation starting this year, Globe is committing to a lower capital expenditure level of $1.3 billion in 2023 and aims to further reduce this to $1 billion in 2024.
However, optimizing its capital spending and improving free cash flow will not be at the expense of service quality.
The company committed to continue deliveringa world-class network and an industry-leading customer experience.
Likewise, Globe is focusing on free cash flow sustainability, slowing down on capital spending and optimizing network use to make the most out of its network investments in the last three years.
“We have a guidance of revenue growth of mid-single digit in 2023. It is the same guidance that we had in 2022, despite the major macroeconomic headwinds we are facing this year," said Chief Finance Officer Rizza Maniego-Eala.
The telco also intends to maintain its 50 percent margin for earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023. "We will deliver this by following through on our cost management initiatives” she added. Globe’s EBITDA inched up by six percent to an all-time high of P79.1 billion last year from P74.9 billion in 2021, with an EBITDA margin of 50 percent from 49 percent in 2021. The company also booked a four percent rise in service revenues to a record high of P158 billion in 2022 from P152.3 billion in 2021, driven by mobile and corporate data services and increased revenue contribution of non-telco subsidiaries.
Globe’s revenues in the fourth quarter surpassed the P40 billion level for the first time in the company’s history. On the bottomline, the company reported a 46 percent jump in net income, to end the year at P34.6 billion from P23.7 billion in 2021.
This increase was brought about by the gains the company recognized for the partial sale of its data center business, as well as the execution of the first few tranches of the sale and leaseback of its tower assets.
This year, Globe likewise expects more proceeds from the tower sale and leaseback initiative, with the balance of the towers to be turned over progressively over the next few quarters.
Last August, Globe decided to sell more than 7,000 towers to MIESCOR Infrastructure Development Corp. (MIDC), Frontier Tower Associates Philippines, and PhilTower Consortium Inc. to improve its balance sheet health and finance its capital expenditures.
So far, it has raised around P39.0 billion from the transactions. To strengthen free cash flow generation starting this year, Globe is committing to a lower capital expenditure level of $1.3 billion in 2023 and aims to further reduce this to $1 billion in 2024.
However, optimizing its capital spending and improving free cash flow will not be at the expense of service quality.
The company committed to continue deliveringa world-class network and an industry-leading customer experience.
Likewise, Globe is focusing on free cash flow sustainability, slowing down on capital spending and optimizing network use to make the most out of its network investments in the last three years.