Date post: | 03-Jun-2018 |
Category: |
Documents |
Upload: | businessworld |
View: | 227 times |
Download: | 0 times |
of 20
8/12/2019 Globe: Q2 analyst briefing presentation materials
1/20
8/12/2019 Globe: Q2 analyst briefing presentation materials
2/20
S
ECU
R ITI
E
S
A
N
D
E
X
C
H
AP
U
j^ui
v
i
ivi
i
ooi
w
n
SECFORM 17-C
CURREN
T
RE
PO
R
T
UNDERS
E
CT
I
O
N
17
OF
T
HESE
CURI
T
IESR
E
G
U
L
A
T
I
ONS
C
ODE
SR
C
ANDS
R
CRULE1
7
a)-1b)
3
)THEREU
N
DER
Date o
f
Repor
t
Dateofearliest even
t
report
e
d
117
3
..
.p00
fT
68
:
480
-0
q0
S
E
C
id
en
t
ifica
t
io
n
Nu
m
be
r BI
R
Ta
xIdentificatio
n
Nu
m
be r
i
*
M
n
r
n
n
^f
i-Q
nic
t
rant
ac
s
n
pn
i
f
i
s
di
n
it
s
cha
r
te
r
5
.
.
PH
I
L
IP
P
I
NE
u i
\ ~
.
.
:
.
/
/
Prov
in
c
e
,country
o
ro
t
h
e
rjurisd
ic
ti
o
no Indus
t
ryC
la
ssif
i
ca
t
i
o
nCode
in
co
r
p
oratio
n
7
27/F,
TheGlobe
T
ow
e
r
,
32n
d
Str
e
et
co
rn
e
r7
th
Ave
n
u
e
1
6
3
4
Boni
fa
c
io
G
lob
al
C
ity
,
.J
a
jgui
g
Ad
d
re
ss
o
f
p
ri
nc
ip
al
of
f
i
c
Po
st
al
c
o
de
Regis
t
rant
s
tele
ph
o
n
en
u
mber,
i
ncl
u
di
n
g
ar
e
acode
9
5
/F
,
G
l
ob
e
Tel
e
com
Plaza(Pio
ne
er
Hi
gh
land
s),
Pi
on
e
e
r
corn
er
Mad
i
son
S
ts
.
,
lyia
nd
alu
y
on
g
City
F
o
r
mer
n
am
e
o
rf
o
r
me
r
a
d
d
r
es
s
,
i
f
c
h
a
n
g
e
d
s
i
n
c
e
l
a
s
t
r
e
p
or
t
10
Se
c
urit
i
e
s
regis
t
eredpursuant
t
oSe
c
t
i
ons4an
d
8
ofth
e
SRC
8/12/2019 Globe: Q2 analyst briefing presentation materials
3/20
Globe Telecom, Inc.
FINANCIAL AND OPERATING RESULTSFirst Half 2014
6 August 2014
8/12/2019 Globe: Q2 analyst briefing presentation materials
4/20
First Half 2014 Performance Highlights
EBITDA up 1% YoY despite increase in
subsidies and operating expenses EBITDA up 17% QoQ on lower subsidies and
operating expenses
Core NIAT up 18% YoY due to higher
EBITDA, lower BAU and accelerateddepreciation, and non-operating expenses
Service Revenues up 7% YoY as growth
momentum continues across all product
categories
2Q14 revenues hit a new quarterly record
Service Revenues
EBITDA
Core NIAT
DividendsPhp18.75/
share
Record date on Aug 19, 2014; payable on Sept. 4, 2014
Quarterly pay-out in line with policy of distributing 75-90%of prior years core net income
23,163
24,465
23,230
2Q13 1Q14 2Q14
+5%
+6%
In Php MillionsIn Php Millions
1H13 1H14
44,532
47,695
+7%
In Php Millions
1H13 1H14
18,940
19,077
+1%
2Q13 1Q14 2Q14
+17%
+1%
In Php Millions
10,164 10,281
8,796
In Php Millions
1H13 1H14
6,426
7,589
+18%
2Q13 1Q14 2Q14
+26%
+27%
In Php Millions
3,3414,232
3,357
8/12/2019 Globe: Q2 analyst briefing presentation materials
5/20
Mobile Revenues grew 5% YoY on the back of broad-based,
subscriber-driven growth
34.2 34.536.4
38.740.61.9 2.0
2.0
2.12.1
2Q13 3Q13 4Q13 1Q14 2Q14
Postpaid
Prepaid
Mobile SubscribersIn Millions
11.5 11.4 11.8
2Q13 1Q14 2Q14
7.2 7.0 7.5
2Q13 1Q14 2Q14
Quarterly Mobile RevenuesIn Php Billions
Gross AddsIn Thousands
7228 8936 9405
143
200 190
2Q13 1Q14 2Q14
Postpaid
Prepaid
Postpaid Prepaid
22.7 23.2
13.1 14.6
1H13 1H14
Postpaid
Prepaid
YTD Mobile RevenuesIn Php Billions
+5%
35.8 37.8 +18%
+5%
42.740.8
38.4
36.536.1
+7% +3%+5%
+5%
+2% +30%
8/12/2019 Globe: Q2 analyst briefing presentation materials
6/20
Core services remain resilient with voice revenues up 9% YoY and SMS
revenues keeping steady, despite continued shift to unlimited promos
15.917.3
8.7 8.7
1H13 1H14 1Q14 2Q14
Mobile Voice RevenuesIn Php Billions
14.3 14.2
7.0 7.2
1H13 1H14 1Q14 2Q14
Mobile SMS RevenuesIn Php Billions
Mobile Voice and SMS Revenues as
a % of Mobile Revenues
84% 84%
44% 46%
40% 38%
85%82%
47% 45%
38% 37%
1H13 1H14 1Q14 2Q14
SMS
Voice
+3%
+9%
8/12/2019 Globe: Q2 analyst briefing presentation materials
7/20
Data revenues, across different technologies, remains
a key growth driver for Globe
. . . driving substantial
revenue uplift
Mobile Browsing Revenues
. . . with additional
strategic benefits.
Improved brand equity
New customer insights
System integration for below-the-
line offers
Churn rates to be elevated in the
next quarters for non-paying subs
Mobile Browsing and
Other Data RevenuesIn Php Billions
2.83.4
1Q14 2Q14
5.4
8.9
Pre FB Post FB
The
Free Facebook promo
provided a step increase in
mobile data users . . .
Mobile FB Registered UsersIn Millions
Pre FB Post FB
+23%+65%
1.2x
8/12/2019 Globe: Q2 analyst briefing presentation materials
8/20
Strong growth in data revenues extends to broadband
and fixed line data segments
Broadband RevenuesIn Php Billions
Fixed Line
Data RevenuesIn Php Billions
2.7
2.8
3.1
2Q13 1Q14 2Q14
1.1
1.3 1.3
2Q13 1Q14 2Q14
369 384 378 392 412
1,445 1,497 1,6541,798 1,836
1,814 1,8812,032
2,190 2,248
2Q13 3Q13 4Q13 1Q14 2Q14
+3%
+24%
Broadband Cumulative
SubscribersIn Thousands
Wired
Wireless
+15%
+10%
+14%
8/12/2019 Globe: Q2 analyst briefing presentation materials
9/20
Creating a differentiated customer experience with
new products and services
GoUnli20 GoTXT19Plus
New Promo Bundles New TM Facebook Offer Globe partners with
Xiaomi for Mi 3 handset
New Tattoo Service and
Device Offers
GCash expands nationwide
reach with CashKO
Globe corporate M2M
solutions
8/12/2019 Globe: Q2 analyst briefing presentation materials
10/20
Globe Telecom, Inc.
FINANCIAL PERFORMANCEFirst Half 2014
8/12/2019 Globe: Q2 analyst briefing presentation materials
11/20
*OPEX & Subsidy includes interconnect expenses
**Core NIAT excludes forex, mark-to-market gains and losses, and non-recurring items
Consolidated Financial Highlights
In Php Mn6M14 6M13
Y/YChange
2Q14 1Q14Q/Q
Change
Service Revenues 47,695 44,532 7% 24,465 23,230 5%
OPEX & Subsidy* (28,618) (25,592) 12% (14,184) (14,434) (2%)
EBITDA 19,077 18,940 1% 10,281 8,796 17%
EBITDA Margin 40% 43% (3%) 42% 38% 4%
Depreciation 8,510 16,071 (47%) 4,443 4,067 9%
Affected by Network Modn 1,178 7,118 (83%) 666 512 30%
Others 7,332 8,953 (18%) 3,776 3,555 6%
EBIT 10,567 2,869 268% 5,838 4,728 23%
Non-Operating Charges (645) (1,046) (38%) (223) (422) (47%)
NIAT 6,835 1,410 385% 3,886 2,949 32%
Core NIAT** 7,589 6,426 18% 4,232 3,357 26%
8/12/2019 Globe: Q2 analyst briefing presentation materials
12/20
YoY, EBITDA improved by 1%, driven by revenue growth and lower
interconnect charges, offsetting increases in operating costs
YoY Change in EBITDA(in Php Mn)
QoQ Change in EBITDA(in Php Mn)
+1%
+17%
19,077
3,163 446408 1,168 501
1,395
18,940
6M13 EBITDA Inc. in Revenues Dec. in
Interconnect
Charges
Inc. in Staff Costs Inc. in Marketing
& Subsidy
Inc. in Network
Costs
Inc. in Provisions,
Services, Others
6M14 EBITDA
1,235 175 233
114 38 6
8,796
1Q14 EBITDA Inc. in Revenues Inc. in
InterconnectCharges
Inc. in Staff Costs Inc. in Marketing
& Subsidy
Dec. in Network
Costs
Dec. in
Provisions,Services & Others
2Q14 EBITDA
10,281
8/12/2019 Globe: Q2 analyst briefing presentation materials
13/20
Capital expenditures at approximately Php11 Billion,
in line with Php29 Billion CAPEX guidance for 2014
18,007 20,124
28,999
11,003
2011 2012 2013 6M14
CAPEXIn Php Millions
Core Capex
16%
Data-driven CAPEX54%
Others 16%
Business SupportSystems 14%
6M14 CAPEX Breakdown
29,000Guidance for 2014
d b h billi h h f bl
8/12/2019 Globe: Q2 analyst briefing presentation materials
14/20
Gross debt at Php68.8 billion, though comfortably
within covenant ratios
48,67961,779
69,301 68,817
2011 2012 2013 6M14
Gross Debtin Php Millions
1.01
1.33
1.66 1.58
2011 2012 2013 6M14
Gross D/E Ratio
1.391.78
1.90 1.88
2011 2012 2013 6M14
Gross Debt/EBITDA Ratio
Covenant = 3:1
Covenant = 2:1
21.0% 21.6%26.3%
32.1%
FY2011 FY2012 FY2013 6M14
Annualized
Return on Equity*
ROE (annual)*Return on equity calculated as Core NIAT divided by averagestockholders equity
C h Di id d S i d i d li i l
8/12/2019 Globe: Q2 analyst briefing presentation materials
15/20
Cash Dividends: Sustained commitment to delivering value to
our shareholders
4.3%*10.1%
5.8%
Dividend
yield
Share price
appreciation
TSR
2014 YTD Total Shareholder Return (as of
July 31, 2014)
Third quarter cash dividend of Php18.75
per common share payable onSeptember 4, 2014 to shareholders onrecord as of August 19, 2014.
4.3%*
2%3%
4%
GLO PSE Index 5YR PDST 7YR PDST
Globe 2014 Dividend Yield*
* On an annualized basis and using GLO share price of Php1,735 (July 31, 2014 close)
Cash Dividend perCommon Share:
Php 18.75
Record Date: August 19, 2014
Payment Date: September 4, 2014
Key Information
8/12/2019 Globe: Q2 analyst briefing presentation materials
16/20
8/12/2019 Globe: Q2 analyst briefing presentation materials
17/20
Appendix
8/12/2019 Globe: Q2 analyst briefing presentation materials
18/20
2013 2014
(In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q
CONSOLIDATED SERVICE REVENUES
Mobile 17,124 18,717 18,232 18,691 18,456 19,342
Voice 7,670 8,268 8,052 8,377 8,658 8,684
SMS 6,961 7,349 7,097 7,387 7,008 7,233
Data 2,493 3,100 3,083 2,927 2,790 3,425
Fixed Line & Broadband 4,244 4,447 4,493 4,552 4,774 5,123Broadband 2,486 2,659 2,632 2,663 2,790 3,065
Fixed Line Data 1,111 1,148 1,190 1,242 1,319 1,313
Fixed Line Voice 647 640 671 647 665 745
Total 21,368 23,164 22,725 23,243 23,230 24,465
EBITDA 8,776 10,164 9,353 8,221 8,796 10,281
EBITDA Margin 41% 44% 41% 35% 38% 42%
Appendix 1:
Historical Consolidated Gross / Net Service Revenues and EBITDA Margin
2013 2014
(In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q
Net Service Revenues 19,172 20,683 20,425 20,939 21,173 22,293
Interconnection SettlementCosts
2,196 2,481 2,300 2,304 2,057 2,172
8/12/2019 Globe: Q2 analyst briefing presentation materials
19/20
Appendix 2:
Net Income and Core Net Income
(in Million Pesos) 6M14 6M13
%
Change 2Q14 1Q14
%
ChangeReported Net Income After Tax 6,835 1,410 385% 3,886 2,949 32%
Deferred Tax on Unexercised Stock Options 55 (188) (129%) 13 41 (68%)
Add (deduct) forex loss (gain) (430) (1,914) (78%) (285) (145) 96%
Other Adjustments - accelerated depreciation 1,129 7,118 (84%) 617 512 20%
Core Net Income 7,589 6,426 18% 4,232 3,357 26%
8/12/2019 Globe: Q2 analyst briefing presentation materials
20/20