Globe targets mid-single digit service revenue growth in 2023

Ayala-led Globe Telecom Inc. targets mid-single digit growth in its service revenues in 2023, as it plans to spread out the turnover and sale of its towers throughout the year.

In briefing materials disclosed to the local bourse, Globe said considerations for its service revenue guidance include the tower turnover and sale proceeds, after raising P29.8 billion from the sale of 2,410 towers.

It has closed the sale of 860 of its towers in Luzon to MIDC for P10.3 billion, and 1,550 towers nationwide worth P19.5 billion to Frontier. It is also set to sell 1,350 towers in Visayas and Mindanao to PhilTower, with the first closing expected within the first quarter of the year.

“Proceeds from the sale of the towers will be used to pay down debt, and capital expenditures to support the ongoing network expansion,” Globe said.

The guidance also incorporated the impact of the SIM card registration, after registering over 12 million active SIMs into its portal. It expects more before the April 26 deadline set by the government.

The company said the SIM registration will have no impact on its financial and operating metrics, specifically on its gross service revenue levels.

For this year, Globe is set to spend $1.3 billion and targets a $1.0-billion capital expenditure (capex) program by 2024 through focusing on its free cash flow sustainability.

The company said its capex peaked at $1.9 billion in 2022, with the chunk or 86% allocated for its data business. This was followed by business support with 6%, core business with 4%, and others with 5%.

“Moving forward, Globe has the flexibility to be more efficient in capital deployment,” it said.

Globe’s subsidiaries include Innove Communications Inc., GTI Business Holdings Inc., Kickstart Ventures Inc., Asticom Technology Inc., Globe Capital Venture Holdings Inc., Bayan Telecommunications Inc., TaoDharma Inc., GTowers Inc., Yondu Inc., and Electronic Commerce Payments Inc.

Shares in the company were trading up by P2.00 or 0.10% at P2,092.00 apiece as of 11:22 a.m. on Thursday.—AOL, GMA Integrated News