Globe reached a financial milestone for 2023, achieving a record consolidated EBITDA or earnings before interest, taxes, depreciation, and amortization of PHP81.4 billion, a 3% increase from the previous year’s PHP79.1 billion.
This growth is attributed to a healthy 3% expansion in the company’s topline, effectively balancing the rise in operating expenses. It underscores Globe's operational excellence and strategic focus, resulting in an EBITDA margin of 50%, aligned with its full-year guidance.
"The solid EBITDA growth this year underscores our robust financial condition and our capability to continue expanding and achieving profitability amidst steep competition. It's a clear indicator of our unwavering dedication to deliver exceptional value to our customers and investors alike," said Ernest Cu, Globe Group President and CEO.
Globe’s EBITDA achievement was propelled by an unprecedented consolidated service revenue of PHP162.3 billion, also 3% higher than the prior year’s PHP158.0 billion. This was fueled by a focus on mobile, corporate data, and the expanding non-telco services sector.
The company's steadfast commitment to digital innovation saw data revenues swell to 83% of total service revenues in 2023 from 81% in 2022, with the digital lifestyle becoming an integral part of Filipino life.
The mobile segment, a cornerstone of Globe's success, reported an all-time high revenue of PHP112.4 billion in 2023, or a 5% year-on-year growth. This surge was primarily driven by the prepaid sector's response to affordable mobile devices and an increased appetite for high-bandwidth online video and social media content over smartphones.
Mobile data revenues climbed to PHP90.9 billion, accounting for 81% of total mobile revenues and signifying a shift towards data-driven consumer engagement.
Corporate data revenues soared to PHP18.3 billion, marking the highest in Globe's history, reflecting a 7% increase from the previous year. It highlights Globe's pivotal role in the digital transformation journey of enterprises across the Philippines.
Innovation extends beyond traditional telecom services, with non-telco revenues reporting an 18% yearly growth, representing 3% of total consolidated service revenues from 2.6% last year. This was achieved despite the deconsolidation of ECPay from Globe's books with the sale of its 77% stake in ECPay to Mynt last September 2023.*
Looking ahead, Globe is poised for continued growth, driven by a customer-centric strategy and commitment to digital solutions and network excellence. Its focus on capital efficiency and network development, including significant investments in 5G and fiber technologies, sets the stage for Globe to lead the digital transformation in the Philippines and beyond.
To learn more about Globe, visit https://www.globe.com.ph/.
*The deal is currently undergoing thorough reviews. Completion is expected upon receipt of approvals from relevant regulatory bodies and satisfaction of closing conditions.
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