{"id":326967,"date":"2024-02-29T10:46:44","date_gmt":"2024-02-29T02:46:44","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326967"},"modified":"2024-02-29T10:46:46","modified_gmt":"2024-02-29T02:46:46","slug":"stock-in-focus-globe-telecom-glo-29-feb-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-globe-telecom-glo-29-feb-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Globe Telecom (GLO) – 29 Feb 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GLO<\/td><\/tr>
Company Name<\/strong><\/td>Globe Telecom<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>29 Feb 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2,240.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We estimate that GLO will be registering a low to mid-single digit growth in topline for the year. We are downgrading our recommendation on GLO to HOLD with a Target Price of P1,960, reflecting a slowdown in topline growth. Our Target Price offers an upside of 9.50%.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Globe Telecom, Inc. (GLO)’s Core Net Income (NI) in 4Q 2023 has risen by 30.71% year-on-year (y\/y) to P4.12 billion. 2023 core net income declined slightly by -1.32% y\/y to P18.92 billion. Service revenues in 4Q 2023 grew by +3.12% y\/y to P41.27 billion. <\/p>\n\n\n\n

The rise was mostly under the mobile business (+8.4% y\/y). In 2023, service revenues grew by +2.76% y\/y to P162.33 billion. The wireline business which includes Fixed line voice, corporate data, and home broadband continues to record declines, down by -7.75% y\/y to P12.08 billion in 4Q 2023. For 2023, this was slightly down by -0.99% y\/y to P49.96 billion. <\/p>\n\n\n\n

The mobile data business remains the focus of Globe right now as this segment contributes mostly to topline growth. The company is focusing on growing its prepaid segment which launched in 2H 2023, a lower-cost offering under the broadband business.<\/p>\n\n\n\n

Income from Mynt rose by +193% y\/y to P2.37 billion, contributing 7.3% to Net
income before tax. Management noted that GCash is ready for an IPO, however, they have once again cited issues of liquidity for the PH market as reasons for holding back on the company\u2019s IPO. GLO has expanded its dividend payout from the previous 60-75% to 60-90% of the previous year\u2019s core net income. EBITDA is forecasted to maintain margins at around the 50% level.<\/p>\n\n\n\n

Capex for GLO finished at P70.6 billion for 2023 and is forecasted to settle at roughly P55 billion for 2024. Capex is expected to decline further in 2025 as the company works to reduce its capex after years of heavy investments to achieve free cash flow.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>