{"id":331473,"date":"2025-02-10T22:48:39","date_gmt":"2025-02-10T14:48:39","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331473"},"modified":"2025-02-10T22:48:41","modified_gmt":"2025-02-10T14:48:41","slug":"stock-in-focus-globe-telecom-glo-10-feb-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-globe-telecom-glo-10-feb-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Globe Telecom (GLO) – 10 Feb 2025 by AP Securities"},"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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>10 Feb 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2,689.32<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Despite the 4th quarter (4Q) 2024 earnings miss, GLO appears to be on the right track to achieving positive free cash flow (FCF) this year and the company is doing a good job focusing on key strengths, namely corporate data, prepaid fiber, and fintech. With this, we reiterate our BUY rating on GLO with a Target Price of P2,689.32\/share on the back of steady mobile revenues with corporate data, GCash and Globe Fiber Prepaid (GFP) being potential growth avenues.<\/p>\n\n\n\n

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

GLO posts mixed results, earnings miss estimates<\/strong><\/p>\n\n\n\n

GLO posted a miss in its 4th quarter (4Q) 2024 earnings by 29% as net income declines by -28.5%. On a positive note, 2024 earnings is in-line with estimates by 2.2% despite a -1.2% year-on-year (YoY) decline to P24.3-Billion from P24.6-Billion the previous year. The overall slower trajectory in 4Q and 2024 are mainly attributed to lower tower sale gains and prolonged impact of inflationary pressures. Excluding one-time tower sale gains, 2024 core earnings would have increased by 13.7% YoY to P21.5-Billion from P18.9-Billion the previous year.<\/p>\n\n\n\n

Mobile and corporate data remain as key drivers<\/strong><\/p>\n\n\n\n

Despite the -34.2% quarter-on-quarter (QoQ) decline in core earnings in 4Q, 2024 core earnings continued its upward trajectory on the back of steady performances in mobile (+4% YoY) and corporate data (+11% YoY) revenues, which contributes 83% of total gross service revenues. The shift continues to data-driven services, with data revenues now accounting for 86% of consolidated gross service revenues, up from 83% in the previous year.<\/p>\n\n\n\n

GCash and Globe Fiber Prepaid (GFP) bring potential growth<\/strong><\/p>\n\n\n\n

GCash continues to grow its contribution to GLO\u2019s bottom line and now accounts 12% of GLO\u2019s pre-tax net income. Additionally, GLO\u2019s share in Mynt\u2019s equity earnings in 2024 reached a record of P3.8-Billion, an increase of 59% from P2.4-Billion last year. GCash also recorded a hefty year-on-year increase in loans disbursed (+85%) and number of unique borrowers (+101%).<\/p>\n\n\n\n

Home broadband, on the other hand, continues its current downward trajectory with a 5.3% decline in revenues, although its rate of decline is showing signs of easing. Despite home broadband subscribers decreasing to 1.74-Million from 1.75-Million the previous year, Globe Fiber Prepaid (GFP) maintains its strong momentum with subscriber count reaching 260,000.<\/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>