GlobalTech Corporation Announces Third Quarter 2024 Results
GlobalTech (GLTK) reported strong Q3 2024 financial results with net revenues increasing 78% to $5.02 million compared to the previous year's quarter. The growth was primarily driven by higher international termination (telecom) business and technology services. Direct operating costs rose to $4.6 million from $2.2 million due to higher interconnect costs. The company's net loss improved to ($455,818) from ($2.3 million) in the prior year. For the nine months ended September 30, 2024, total revenues reached $13.3 million with Adjusted EBITDA of $646,000. The company achieved 100% conversion ratio in select markets for upsell to broadband services.
GlobalTech (GLTK) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con ricavi netti in aumento del 78%, raggiungendo i 5,02 milioni di dollari rispetto allo stesso trimestre dell'anno precedente. La crescita è stata principalmente guidata dall'aumento del business di terminazione internazionale (telecomunicazioni) e dei servizi tecnologici. I costi operativi diretti sono aumentati a 4,6 milioni di dollari rispetto a 2,2 milioni di dollari a causa dell'aumento dei costi di interconnessione. La perdita netta dell'azienda è migliorata, passando da ($2,3 milioni) a ($455,818) rispetto all'anno precedente. Nel periodo di nove mesi conclusosi il 30 settembre 2024, i ricavi totali hanno raggiunto 13,3 milioni di dollari, con un EBITDA rettificato di 646.000 dollari. L'azienda ha ottenuto un rapporto di conversione del 100% in mercati selezionati per l'up-selling ai servizi a banda larga.
GlobalTech (GLTK) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos netos que aumentaron un 78%, alcanzando los 5,02 millones de dólares en comparación con el trimestre del año anterior. El crecimiento fue impulsado principalmente por un mayor negocio de terminación internacional (telecomunicaciones) y servicios tecnológicos. Los costos operativos directos aumentaron a 4,6 millones de dólares desde 2,2 millones de dólares debido a mayores costos de interconexión. La pérdida neta de la empresa mejoró, pasando de ($2,3 millones) a ($455,818) en comparación con el año anterior. Para los nueve meses que terminaron el 30 de septiembre de 2024, los ingresos totales alcanzaron 13,3 millones de dólares, con un EBITDA ajustado de 646,000 dólares. La empresa logró una tasa de conversión del 100% en mercados seleccionados para la venta adicional de servicios de banda ancha.
글로벌테크 (GLTK)는 2024년 3분기 강력한 재무 결과를 발표했으며, 순수익이 78% 증가하여 502만 달러에 달했습니다. 이는 지난해 같은 분기와 비교한 수치입니다. 성장은 주로 국제 전화 종료(텔레콤) 사업과 기술 서비스 증가에 의해 촉진되었습니다. 직접 운영 비용은 220만 달러에서 460만 달러로 증가했으며, 이는 상호 연결 비용 증가 때문입니다. 회사의 순손실은 개선되었습니다, 지난해의 ($230만)에서 ($455,818)로 감소했습니다. 2024년 9월 30일로 종료된 9개월 동안 총 수익은 1,330만 달러에 달하며, 조정된 EBITDA는 64만 6천 달러였습니다. 회사는 선택된 시장에서 광대역 서비스 추가 판매를 위한 100% 전환 비율을 달성했습니다.
GlobalTech (GLTK) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des revenus nets en augmentation de 78%, atteignant 5,02 millions de dollars par rapport au trimestre de l'année précédente. La croissance a été principalement soutenue par une augmentation des activités de terminaison internationale (télécommunications) et des services technologiques. Les coûts d'exploitation directs ont augmenté pour atteindre 4,6 millions de dollars, contre 2,2 millions de dollars en raison des coûts d'interconnexion plus élevés. La perte nette de l'entreprise s'est améliorée, passant de ($2,3 millions) à ($455,818) par rapport à l'année précédente. Pour les neuf mois se terminant le 30 septembre 2024, le chiffre d'affaires total a atteint 13,3 millions de dollars avec un EBITDA ajusté de 646 000 dollars. L'entreprise a enregistré un taux de conversion de 100 % dans certains marchés pour la vente complémentaire de services à large bande.
GlobalTech (GLTK) hat für das dritte Quartal 2024 starke finanzielle Ergebnisse berichtet, mit einem Anstieg der Nettoumsätze um 78% auf 5,02 Millionen Dollar im Vergleich zum Vorjahresquartal. Das Wachstum wurde hauptsächlich durch ein erhöhtes internationales Terminierungs (Telekommunikation) Geschäft und Technologiedienstleistungen unterstützt. Die direkten Betriebskosten stiegen auf 4,6 Millionen Dollar von 2,2 Millionen Dollar aufgrund höherer Interconnection-Kosten. Der Nettoverlust des Unternehmens hat sich verbessert und fiel von ($2,3 Millionen) auf ($455,818) im Vergleich zum Vorjahr. Für die neun Monate bis zum 30. September 2024 betrugen die Gesamterlöse 13,3 Millionen Dollar, mit einem bereinigten EBITDA von 646.000 Dollar. Das Unternehmen erreichte eine Konversionsquote von 100 % in ausgewählten Märkten für Upselling von Breitbanddiensten.
- Net revenue growth of 78% to $5.02 million in Q3 2024
- Net loss improvement by $1.9 million year-over-year
- Positive Adjusted EBITDA of $646,000 for nine months ended September 30, 2024
- 100% conversion ratio in select markets for broadband services
- Direct operating costs increased by 109% to $4.6 million
- Continued net loss of ($455,818) in Q3 2024
Net revenue grew by
RENO, Nev., Nov. 13, 2024 (GLOBE NEWSWIRE) -- GlobalTech Corporation (GTC, OTC:GTLK)(“GlobalTech” or the “Company”), a leading U.S.-based technology investment holding company, today announced financial results for the third quarter of 2024.
Q3 2024 Financial Highlights:
- Net Revenues grew
$2.2 million , or78.0% to$5.02 million for the third quarter of 2024, compared to the prior year’s quarter, led by higher international termination (telecom) business and other technology services - Direct Operating Costs of
$4.6 million , compared to$2.2 million in last year’s third quarter, due to higher interconnect costs - Net Loss declined by
$1.9 million to ($455,818) , from ($2.3 million ), in last year’s same period, primarily due to the increase in revenues, offset by the increase in direct operating costs 100% conversion ratio in select markets for upsell to broadband services
Dan Green, GlobalTech CEO commented, "GlobalTech continues to make progress as a pre-eminent provider of broadband and telecommunications services in Pakistan. We believe we are on track to accomplish another exciting year of growth in our net revenues, which totaled
*Note: A schedule reconciling GlobalTech’s generally accepted accounting principles in the United States (“GAAP”) and Adjusted EBITDA, a non-GAAP financial measure, are included later in this release (see also “Non-GAAP Financial Measure”, below).
About Worldcall Telecom Limited (www.worldcall.net.pk)
Worldcall Telecom Limited (PSX:WTL) is a publicly listed telecom and media operator in Pakistan. Worldcall has substantial deployments in Long Distance and International (LDI), broadband, metro fiber optic networks, and media playout facilities for its cable operations. Worldcall has deployed approximately 2,000 km of metro fiber in 20 cities across Pakistan to provide its customers with internet and television service with a potential service footprint of 3.2 million homes. GlobalTech owns, directly and indirectly through associates, an aggregate of around
About GlobalTech Corporation
GlobalTech Corporation, headquartered in the USA, is a technology investment holding company that aims to provide growth capital and technological innovation to sectors such as AI, Big Data, and telecommunications. GTC partners with global companies to deliver innovative solutions that transform industries.
For more information, visit: globaltechcorporation
Forward Looking Statements
Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements, that involve a number of risks and uncertainties. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. The important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation, our need for additional capital, the terms of such capital and potential dilution caused thereby; the fact that we are exposed to foreign currency exchange loss, fluctuation and translation risks related to our business in Pakistan; the international economic environment, geopolitical developments and unexpected global events could cause our business to decline; investing in emerging markets, where our operations are located, is subject to greater risks than investing in more developed markets, including significant political, legal and economic risks; and our revenue performance can be unpredictable by nature, as a large majority of our customers have not entered into long-term fixed contracts with us; we operate in highly competitive markets, which we expect only to become more competitive, and as a result, we may have difficulty expanding our customer base or retaining existing customers; we may be unable to keep pace with technological changes and evolving industry standards, which could harm our competitive position and, in turn, materially harm our business; we are exposed to cyber-attacks and other cybersecurity threats that may lead to compromised or inaccessible telecommunications, digital and financial services, and/or leaks or unauthorized processing of confidential information, and perceptions of such threats may cause customers to lose confidence in our services; the telecommunications industry is highly capital-intensive and requires substantial and ongoing expenditures of capital; and our ability to profitably provide telecommunications services depends in part on the terms of our interconnect agreements and access to third-party-owned infrastructure and networks, over which we have no direct control; we may also be subject to increases in license fees for some of our licenses or to obtain new licenses; the loss of important intellectual property rights, as well as third-party claims that we have infringed on their intellectual property rights, could significantly harm our business; our substantial amounts of indebtedness and debt service obligations could materially decrease our cash flow, which could adversely affect our business and financial condition; we may not be able to raise additional capital, or we may only be able to raise additional capital at significantly increased costs; if Worldcall Telecom Limited issues more shares, our ownership could go below
Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in GlobalTech’s publicly filed reports, including, but not limited to, GlobalTech’s Annual Report on Form 10-K for the year ended December 31, 2023 (as amended), and GlobalTech’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and future Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. These reports are available at www.sec.gov. GlobalTech cautions that the foregoing list of important factors is not complete. All subsequent written and oral forward-looking statements attributable to GlobalTech or any person acting on behalf of GlobalTech are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on GlobalTech’s future results. The forward-looking statements included in this press release are made only as of the date hereof. GlobalTech cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, GlobalTech undertakes no obligation to update these statements after the date of this release, except as required by law, and takes no obligation to update or correct information prepared by third parties that are not paid for by GlobalTech. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
NON-GAAP FINANCIAL MEASURES
In addition to our results calculated under generally accepted accounting principles in the United States (“GAAP”), in this news release we also present certain non-U.S. GAAP financial measures. Non-U.S. GAAP financial measures include Adjusted EBITDA. We have included Adjusted EBITDA in this news release as a supplement to GAAP measures of performance to provide investors with an additional financial analytical framework which management uses, in addition to historical operating results, as the basis for financial, operational and planning decisions and present measurements that third parties have indicated are useful in assessing GlobalTech and its results of operations. Adjusted EBITDA is presented because we believe it provides additional useful information to investors due to the various noncash items during the period. Adjusted EBITDA is also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are: Adjusted EBITDA does not reflect cash expenditures, future requirements for capital expenditures, or contractual commitments; Adjusted EBITDA does not reflect changes in, or cash requirements for, working capital needs; and Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments. For example, although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements. Additionally, other companies in our industry may calculate Adjusted EBITDA differently than GlobalTech does, limiting its usefulness as a comparative measure. You should not consider Adjusted EBITDA in isolation, or as a substitute for analysis of GlobalTech’s results as reported under GAAP. GlobalTech’s presentation of this measure should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. We compensate for these limitations by providing a reconciliation of this non-GAAP measure to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view this non-GAAP measure in conjunction with the most directly comparable GAAP financial measure.
For more information on Adjusted EBITDA, please see the section titled “Unaudited Reconciliation of Adjusted EBITDA to Net Loss,” at the end of this release.
Contact:
@Core IR
Peter Seltzberg, SVP Investor Relations and Corporate Advisory
(212)-655-0924
peters@coreir.com
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) |
| FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 |
| FOR THE THREE MONTHS ENDED | FOR THE NINE MONTHS ENDED | |||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| NET LOSS | $ | (455,818 | ) | $ | (2,303,874 | ) | $ | (3,108,591 | ) | $ | (6,207,002 | ) | ||||||||||
| Items that will not be reclassified to profit or loss: | ||||||||||||||||||||||
| Changes in fair value of financial assets through other comprehensive income | 20,988 | 752,812 | 31,956 | 226,317 | ||||||||||||||||||
| Foreign currency translation adjustment | 182,426 | (640,328 | ) | 157,047 | 2,035,375 | |||||||||||||||||
| Other Comprehensive income - net of tax | 203,414 | 112,484 | 189,003 | 2,261,692 | ||||||||||||||||||
| COMPREHENSIVE LOSS | (252,404 | ) | (2,191,390 | ) | (2,919,588 | ) | (3,945,310 | ) | ||||||||||||||
| COMPREHENSIVE (LOSS) ATTRIBUTABLE TO: | ||||||||||||||||||||||
| Common shareholders of GlobalTech Corporation | $ | (139,276 | ) | $ | (1,214,030 | ) | $ | (1,619,788 | ) | $ | (2,185,702 | ) | ||||||||||
| Non - controlling interest (NCI) | (113,128 | ) | (977,360 | ) | (1,299,800 | ) | (1,759,608 | ) | ||||||||||||||
| Comprehensive (Loss)/ attributable to GLOBALTECH | (252,404 | ) | (2,191,390 | ) | (2,919,588 | ) | (3,945,310 | ) | ||||||||||||||
GLOBALTECH CORPORATION | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| As of September 30, 2024 and December 31, 2023 | |||||||||||
| September 30, | December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| ASSETS | (Unaudited) | ||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 765,290 | $ | 908,097 | |||||||
| Restricted cash | 2,669,725 | 2,353,442 | |||||||||
| Accounts receivable – net | 3,885,225 | 4,045,485 | |||||||||
| Short term investments | 996,045 | 149,427 | |||||||||
| Prepayments | 13,735 | 11,448 | |||||||||
| Stores and spares | 858,849 | 859,271 | |||||||||
| Loans and advances | 4,352,184 | 4,213,468 | |||||||||
| Other receivables | 3,489,432 | 2,120,283 | |||||||||
| Total current assets | 17,030,485 | 14,660,921 | |||||||||
| Property, plant and equipment | 17,296,872 | 17,904,180 | |||||||||
| Operating lease right-of-use assets | 475,388 | 503,701 | |||||||||
| Intangible assets – net | 10,542,087 | 11,575,524 | |||||||||
| Long term loans and other assets | 1,788,905 | 4,253,358 | |||||||||
| Deferred tax asset | 8,527,470 | 8,389,438 | |||||||||
| TOTAL ASSETS | $ | 55,661,209 | $ | 57,287,121 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Trade and other payables | $ | 27,226,828 | $ | $ | 26,383,588 | ||||||
| Current portion of non-current liabilities | 6,617,540 | 5,968,424 | |||||||||
| Accrued interest | 3,366,663 | 2,706,788 | |||||||||
| Short term borrowings | 1,106,584 | 1,507,307 | |||||||||
| Provision for taxation – net | 1,321,372 | 1,161,384 | |||||||||
| Total current liabilities | 39,638,987 | 37,727,491 | |||||||||
| Term finance certificates | 1,560,960 | 2,119,667 | |||||||||
| Long term financing – secured | 1,461,154 | 1,329,890 | |||||||||
| Long term deposits and payable | 1,407,223 | 1,873,896 | |||||||||
| License fee payable | 163,686 | 161,165 | |||||||||
| Operating lease liability | 646,887 | 689,416 | |||||||||
| Other payables | 1,475,639 | 1,159,342 | |||||||||
| Total non- current liabilities | 6,715,549 | 7,333,376 | |||||||||
| TOTAL LIABILITIES | $ | 46,354,536 | $ | 45,060,867 | |||||||
| CONTINGENCIES AND COMMITMENTS | |||||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||
| Common stock, | 13,983 | 13,976 | |||||||||
| Accumulated other comprehensive loss | (1,657,706 | ) | (1,761,998 | ) | |||||||
| Accumulated deficit | (38,209,159 | ) | (36,484,513 | ) | |||||||
| Shareholders Attributable to the Parent Company | (39,866,865 | ) | (38,232,535 | ) | |||||||
| Non-Controlling interest | 49,159,554 | 50,458,789 | |||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 9,306,672 | 12,226,254 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 55,661,209 | $ | 57,287,121 | |||||||
| The accompanying consolidated notes are an integral part of these unaudited consolidated financial statements. | |||||||||||
Unaudited Reconciliation of Adjusted EBITDA to Net Loss
Set forth below is a presentation and reconciliation of our adjusted EBITDA for the nine months ended September 30, 2024 and 2023:
| Nine months ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| GAAP net loss | (3,108,591 | ) | (6,207,002 | ) | ||||
| Add (deduct) | ||||||||
| Depreciation and amortization | 2,232,909 | 2,515,191 | ||||||
| Finance cost | 1,431,785 | 1,370,552 | ||||||
| Taxation | 193,269 | 76,456 | ||||||
| Exchange loss | (103,184 | ) | 4,102,471 | |||||
| Adjusted EBITDA | $ | 646,187 | $ | 1,857,667 | ||||
Adjusted EBITDA is a non-GAAP financial measure. This measurement is not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. See also “Non-GAAP Financial Measures,” above.
FAQ
What was GlobalTech's (GLTK) revenue growth in Q3 2024?
How much was GlobalTech's (GLTK) net loss in Q3 2024?
What was GlobalTech's (GLTK) Adjusted EBITDA for the first nine months of 2024?
