Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to...
Transcript of Globe Telecom Inc. · Stabilization of postpaid mobile Business Support System (BSS) has led to...
Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014
Message to Shareholders Mr. Jaime Augusto Zobel de Ayala Chairman
90.5 Billion
38.5 Million
2.0 Million Broadband
Customers
Mobile
Subscribers Consolidated
Service Revs
Globe registered another banner year, with record-high revenues, driven in part by robust subscriber expansion
Globe is a direct beneficiary of the robust Philippine economic environment in 2013
OFW Remittances In USD Billions
Philippine GDP Growth
0.6%
2.6%
5.0% 5.1% 5.5% 5.7%
7.7% 7.2%
2013 GDP Growth Selected Asian Countries
• Record level of remittances in 2013 • Sustainable growth momentum due to
growth in domestic consumption, private sector investments, and increased government spending.
7.2%
Investments in Globe’s infrastructure play a central role in enabling the growth of many industries
Enabling various industries … … through our infrastructure
investments…
… which help seed economy and
employment.
Globe competes through product innovation and differentiated level of customer service
@Talk2Globe accounts.globe. com.ph
facebook.com/ GlobePH
Dial *143# Globe Hotline
Globe Concept Stores
2.0 Million
Postpaid
Subscribers
Globe’s product innovation and differentiation has led to robust improvements in revenues and core net income
Fixed Line Data
Service Revenues Core Net Income
Php 90.5B Php 11.6B
2013 Financial Highlights
Mobile Broadband Fixed Line Data
+8%
+20%
+13%
Broad-based Revenue Growth
Consolidated
+9%
13% 9%
Globe invested in a modernized network in preparation for the growing demand for data and internet connectivity
Data continues to be
key source of growth
• Mobile browsing revenues up over
40% year-on-year
• Increasing smartphone penetration
Initiative to modernize into
data-ready network on track
LTE sites in key
CBDs and tourist
spots
Globe has evolved from simply offering traditional telephony to provide expanded services, even in adjacent spaces
BPI Globe BanKO • Has extended over Php900
million in wholesale loans
to reach 60,000 micro-
entrepreneurs
• Nearly 2,000 partner
outlets servicing 460,000
retail customers
Globe has evolved from simply offering traditional telephony to provide expanded services, even in adjacent spaces
Globe’s strong performance reflective in significant growth in shareholder value
GLO* Yield of
Listed Phil
Corporates
2yr PDST-F 5yr PDST-F
GLO Dividend Yield
4.6%
2.0% 3.3%
4.3%
6.2%
49.2% 55.4%
2013 Total Shareholder Return
• First semi-annual cash dividend of P37.50 per common share paid last 20 March 2014 to shareholders on record as of 26 February 2014
• Starting the 2nd half of the year, Globe will distribute quarterly dividend payments to enable better cash management and liquidity planning and provide a more consistent dividend distribution to our shareholders
* On an annualized basis and using GLO closing price as of December 31, 2013 of Php1,640
Globe’s commitment to shared value and corporate social responsibility
Globe Bridging Communities (Bridgecom)
ILead IConserve IProsper IAccess IGive
Globe: Sustaining momentum, overcoming the challenges of a highly competitive market, and capitalizing on the opportunities of a changing telecommunications landscape
Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014
Message to Shareholders Mr. Ernest L. Cu President and CEO
Globe’s 2013 consolidated and mobile revenues reached record highs, despite complexity of ongoing transformation initiatives and sustained competitive intensity
Mobile Revenues In Php Millions
67,189
72,764 +8%
2012 2013
Globe Postpaid/TM Revenues In Php Millions
27,064
16,827
+18%
Globe Postpaid
TM
Cons. Service Revenues In Php Millions
82,742
90,500 +9%
2012 2013
+8%
Total Mobile Subscribers In Millions
1.86
1.73
1.90 1.98
2.03
4Q13 3Q13 2Q13 1Q13 4Q12
35.14
33.12
36.09 36.52
38.48 +16%
Broadband Revenues In Php Millions
8,721
10,440 +20%
2012 2013
Broadband Subscribers In Thousands
341
378 +22%
2013 2012
1,331
1,654 1,672
2,032
Fixed Line Data Revenues In Php Millions
4,167
4,691 +13%
2012 2013
EBITDA In Php Millions
35,014
36,514 +4%
2012 2013
Core Net Income In Php Millions
10,264
11,617 +13%
2012 2013
With sustained revenues momentum from mobile, broadband and fixed line, EBITDA and core net income show solid improvements
Globe’s strong performance driven by continuous commitment to product innovation and differentiated customer experience
GoSAKTO
Globe’s Network Modernization and IT Transformation Programs
First phase of network modernization is fully complete. Globe is now embarking on building more sites, boosting capacity and enhancing network performance.
Fiberization of target sites over 76% completed and 3G coverage expansion over 90% completed, providing customers with a faster mobile browsing experience.
Over 9,400 km of fiber added to Globe’s existing FOC infrastructure in support of the Company’s optical and all-IP transport nationwide network.
Nearly 700 of 4G LTE sites already in operation
Stabilization of postpaid mobile Business Support System (BSS) has led to marked improvements in system performance. Refinement of order processing and account management are underway to further improve customer experience.
For 2014, Globe will continue its BSS transformation with the migration of mobile prepaid, broadband and landline subscribers.
Transition to a new Enterprise Data Warehouse is also underway using top-tier data warehouse components to deliver superior data processing performance, comprehensive intelligence, and enhanced information value chain.
With strategic focus and action, the capabilities and benefits of the new BSS and Enterprise Data Warehouse continue to be optimized.
Network Modernization
IT Transformation
Globe recognizes the challenges from over-the-top players that can provide alternatives to traditional telephony …
.
… and Globe has embraced the challenge through partnerships with these OTT applications, like Viber and Facebook
Globe likewise pushed forth into adjacent spaces to complement its traditional telephony services
Partnership with Plug and
Play Tech Center
Globe’s biggest strength lies in its engaged employees
Employee Satisfaction
Index
73.48%
Employee engagement and malasakit on full display amidst challenges brought by natural calamities
Operationalizing sustainability into regular operations
Globe is committed to remain relevant through innovation and create a wonderful world for our subscribers
2010
2013
Globe Telecom Inc. Annual Stockholders’ Meeting Ballroom 2, Fairmont Makati 8 April 2014