Globe closed the first nine months of 2024 with unprecedented heights in its consolidated gross service revenues, setting new quarterly and year-to-date records. The company achieved consolidated gross service revenues of ₱124.0 billion and ₱41.8 billion, higher by 2% year-on-year and quarter-on-quarter. These results were attained despite the ongoing normalization of home broadband and the impact of the ECPay deconsolidation. Mobile and corporate data businesses significantly contributed to this solid performance, accounting for a combined 83% of the total consolidated gross service revenues, up from 80% the previous year. Mobile revenues rose 5%, and corporate data revenues grew 14% compared to the same period in 2023. Data revenues continued its robust momentum, accounting for 86% of consolidated gross service revenues, up from 82% last year. Assuming the deconsolidation of ECPay2 from Globe’s books in the first nine months of 2023, to make the periods comparable, the total consolidated gross service revenues would have grown by 4%.
The mobile business posted a record ₱87.7 billion in revenues, surpassing its previous peak of ₱83.2 billion reported a year ago, showcasing improvements across all brands. The company’s strategic market initiatives and ongoing network enhancements contributed to this record performance, ensuring that Globe’s offerings remained competitive and appealing to customers. As a result, mobile revenues now account for 71% of the total consolidated gross service revenues, up from 69% in the same period last year. Moreover, Globe’s mobile customer base expanded, reaching 60.2 million subscribers by the end of September 2024.
Mobile data revenues likewise surged to a record-breaking quarterly high of ₱24.8 billion, reaching a record ₱72.9 billion for the first nine months of 2024. This represents a 9% increase from its previous high of ₱67.0 billion reported a year ago. The upsurge in mobile data revenues was largely due to Filipinos’ growing dependence on mobile applications for a wide range of online activities. Mobile data now accounts for a larger share of mobile revenues, growing from 81% last year to 83% this year. During this period, mobile data traffic increased to 4,843 petabytes from 4,360 petabytes reported in the corresponding period of 2023. Conversely, traditional mobile voice and SMS revenues declined by 5% and 13%, respectively, as consumers shift their communication preferences toward data-centric platforms.
Key Business Highlights: Globe’s Sustainable Infrastructure Investment Strategy Leads to a 24% Decrease in Cash Capex
In the first nine months of 2024, Globe invested approximately ₱41.0 billion in capital expenditures (capex), a 24% decrease compared to the same period in 2023. Bulk of this amount or 91% was allocated for the data requirements to guarantee its customers with uninterrupted access to digital solutions and connectivity services, ensuring a seamless and consistent user experience. The cash capex to revenue ratio also declined from 45% in 2023 to 33% in the first nine months of 2024. This reduction is also in line with Globe’s strategy to optimize capital utilization and achieve positive free cash flows by 2025.
From 2023 onward, Globe has strategically shifted its focus from opportunistic capacity expansion to optimizing existing network investments. This prudent approach has enabled the company to restore sustainable capital expenditure (capex) levels while maintaining network quality and capacity. As a result, purchase orders (POs) declined, representing only 53% of the actual cash capex during the first nine months of 2024. This reduction in PO issuances aligns with Globe’s long-term objective of achieving a positive free cash flow position.
Globe’s commitment to providing reliable and high-speed internet connectivity nationwide is demonstrated by its infrastructure expansion efforts. By the end of September 2024, Globe had built 684 new cell sites and upgraded 2,723 existing mobile sites to LTE technology. Additionally, Globe deployed 55,076 fiber-to-the-home (FTTH) lines to strengthen its fiber infrastructure. The rollout was strategically planned to maximize the utilization of existing fiber inventory, given the reduction in cash capex.
Recent Developments:
Tower Sale and Leaseback Deal:
● On July 23, 2024, Globe completed 100% of its Tower Sale and Leaseback Deal with Frontier Towers with the closing of the last batch of towers comprising 1,037 sites for a cash consideration of ₱13.17 billion.
● Subsequently, on October 28, 2024, Globe transferred an additional 25 towers to Unity, with a cash consideration of ₱300 million.
Overall, Globe has officially turned over 6,653 out of the 7,506 towers included in the Sale and Leaseback portfolio, generating approximately ₱85.5 billion in proceeds.
Typhoon Kristine:
● Network Restoration:
○ Initial outages due to power failures affected 21 provinces in Southern Luzon and Visayas,
impacting less than 13% of sites in Southern Luzon and 7% in the Visayas.
○ Restoration began promptly in affected areas, with Globe prioritizing call, text, and data service
restoration despite ongoing power issues.
○ By October 25, service was fully restored in seven provinces, with efforts near completion in
additional locations like Occidental Mindoro, Romblon, and Albay.
● Connectivity Relief for Affected Customers:
○ Globe provided free connectivity options to affected customers, including:
■ Free unlimited calls and texts, plus 100MB of data for all apps and an additional 100MB for social media, valid for a day.
■ Eligible Globe At Home Prepaid WiFi users received free 5GB of data valid for three days and a three-day promo extension for GFiber Prepaid users.
■ Extended payment due dates for Postpaid and GFiber Postpaid customers.
● Deployment of Emergency Stations:
○ Globe set up “Libreng Tawag” (free calls), “Libreng Charging,” and “Libreng WiFi” stations to support residents in heavily impacted areas.
○ In Cebu City, a station was set up and operational for multiple days to aid local residents’ communication needs.
● Community and Donation Efforts:
○ Globe encouraged customers to contribute to relief efforts by donating their Globe Rewards
points through the GlobeOne app, facilitating easier community assistance.
Product Update:
● Starting October 15, 2024, GFiber has revised its pricing structure, offering plans that range from ₱1499 per month for speeds up to 300 Mbps to ₱7,499 per month for speeds as high as 1.5 Gbps.
Data Center Update:
● STT Fairview Project:
○ Construction is progressing on schedule; structural completion anticipated by the end of 2024.
○ Operations will launch for initial customers in early 2025, with a full ramp-up to 12 MW IT load
by end of 2025.
○ Incorporates green technologies, making it one of the region’s most sustainable data centers.
● STT Cavite 2 Project:
○ Active construction underway, with structural completion expected in early 2025.
○ The site will be service-ready by late 2025, adding 6 MW of IT capacity.
● STT Cavite 2 Project, combined with STT Fairview, will raise total IT capacity from 22 MW to 52 MW by 2026. This expansion aligns with the company’s commitment to scale with market growth and client needs.
● Operational Performance:
○ Achieved an 80% rack utilization rate, including contracted space, demonstrating operational
efficiency and client trust.
Key Portfolio Company Highlights: Non-Telco Revenues Plummet 56% as Share in Equity Earnings Soar 120% Year-on-Year
GCash remains the number one finance super-app and the largest digital cashless ecosystem in the country, bannered by ubiquity across its active user base. To complement its ubiquity across its consumers, GCash has also built the largest network of online and offline merchants and social sellers (over 6 million partners) while hosting over 1,000 merchant partners in its app, via GLife. Through the GCash App, customers can easily purchase prepaid airtime, pay bills nationwide, send and receive money anywhere in the Philippines, even to other bank accounts, and purchase from their partner merchants and social sellers.
Built on trust and the security of its brand and platform, GCash was recently recognized by the Asia-Pacific Stevie Awards for the Innovative Use of Technology in Customer Service and for Innovation in Digital Transformation. Alongside this, GCash was recognized by Pan Finance as the best mobile wallet in the Philippines in 2024, and was also given the Company of the Year Award for the Philippines’ Financial Technology Industry from leading global analysis and growth strategy consulting firm Frost & Sullivan. These awards recognize GCash’s pioneering use of digital solutions and innovative financial services and its strong overall achievements in the financial technology space.
GCash boasts of the most comprehensive suite of digital financial services, covering savings (via GSave), investments (via GFunds, GStocks, and GCrypto), and insurance products (via GInsure). On credit, backed by its proprietary trust platform and credit scoring via GScore, GCash has provided access to credit to over 6.9 million borrowers, of which the majority are from lower socio-economic classes and 2⁄3 are women. These milestones were achieved through game-changing lending products covering credit lines (GCredit), cash loans (GLoan), buy-now-pay-later (BNPL via GGives), and the newly-launched micro-credit starter loans (Sakto Loan and Borrow Load), providing loans to more Filipinos who need it the most.
Key ESG Highlights: Promoting a Sustainable Tomorrow through Positive Impact on Society and the Environment
Globe’s Sustainability practice is anchored on Globe Purpose, “Uplift Filipino Lives Everyday”. By aligning with global sustainability frameworks, standards, and principles such as the United Nations’ Sustainable Development Goals (UN SDGs) and UN Global Compact and industry sustainability ambitions, the company is able to collaborate with its stakeholders to deliver positive societal and environmental impact. Globe is focused on addressing its material topics by scaling the integration of its sustainability practices within its business units, portfolio companies, and across the value chain.
Progress towards sustainability ambitions are disclosed in the Globe Sustainability website (https://www.globe.com.ph/about-us/sustainability.html) and in the annual Integrated Report (https://www.globe.com.ph/…/integrated-report.html…). The 2023 Integrated Report is guided by the principles of the following frameworks:
● Reference to the Global Reporting Initiative (GRI) standards
● International Integrated Reporting Council (IIRC) Framework
● Sustainability Accounting Standards Board (SASB)
● Task Force on Climate-related Financial Disclosures (TCFD) recommendations
● United Nations Global Compact (UNGC) Principles
● United Nations Sustainable Development Goals (UN SDGs)
● Securities and Exchange Commission (SEC) recommendations
o Integrated Annual Corporate Governance Report (i-ACGR)
o Sustainability Reporting Guidelines
● GSMA ESG Metrics for Mobile.
