Philippines operator Globe Telecom issued a conservative guidance for 2024, forecasting low- to mid-single-digit revenue growth as the contribution from lower-margin data products rises.

Following a 30 per cent cut in capex to PHP70.6 billion ($1.2 billion) last year, the operator lowered the outlay for 2024 to about PHP55 billion, part of its strategy unveiled in December 2022 to optimise capital deployment and bring cash flow to a more sustainable level.

President and CEO Ernest Cu noted in an earnings release the company “reached new heights” last year, despite lingering macroeconomic challenges and competition, adding it is optimistic it will book continued growth.

Net profit in 2023 dropped 29 per cent to PHP24.6 billion, hit by higher depreciation expenses and non-operating charges. Sales rose 3 per cent to PHP162.3 billion, led by a 5 per cent increase in mobile revenue to PHP112.4 billion.

Mobile data revenue increased 9 per cent to PHP83.8 billion, while voice and SMS sales were down 9 per cent and 10 per cent to PHP13.5 billion and PHP8 billion, respectively.

Post-paid subscribers were stable at 2.5 million; prepaid subs dropped 35 per cent to 54.5 million, following the government’s SIM registration push. Post-paid ARPU was up 2 per cent to PHP855 and prepaid grew 24 per cent to PHP121.

Home broadband revenue dropped 7 per cent to PHP25.1 billion; its corporate data business grew 7 per cent to PHP18.3 billion.