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Globe ends 2014 with record-high results, core net profit up 25%

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Service revenues up 9% at new record high of P99.0 billion

Globe Telecom ended 2014 with impressive financial performance, posting a core net profit growth of 25% to a record level of P14.5 billion, driven by solid performance of its mobile, broadband, and fixed line data businesses. Consolidated service revenues reached a new high of P99.0 billion, besting the previous high of P90.5 billion in 2013.

The solid full-year results were buoyed by a strong second half performance, with fourth quarter revenues at an all-time quarterly high, peaking at P26.3 billion, 5% higher than the previous best of P25.0 billion in the preceding quarter and a 13% improvement from the P23.2 billion from the same period last year. This was driven by the sustained demand for data connectivity across the mobile, broadband and fixed line data businesses, which improved by 7%, 22% and 17%, respectively, given the increasing affordability of the service and compelling gadget bundle offers backed by Globe’s improved network with 100% 3G and 4G coverage completed during the year.

“2014 is another banner year for Globe Telecom, reaching the best-ever consolidated service revenues, EBITDA, net income and core net income, despite intensifying competition Our full year results are testaments of our continued commitment in creating a complete digital experience, delivering best-in-class products and services and a whole new level of customer service experience for our customers,” Globe President & CEO Ernest Cu said.

 “Reaping the benefits of our modernized network, with 100% 3G and 4G coverage, we have seen a steady and healthy growth in both our mobile and broadband businesses, surpassing all of our expectations, and we are confident in sustaining this momentum moving forward. Even as we face new challenges in the coming year, we are optimistic that the new innovations and product offerings we have lined-up will continue to be relevant to our customers, provide growth across all our businesses and create value for our shareholders,” Cu added.

 Mobile telephony revenues, which contributed 79% of consolidated revenues, grew 7% year-on-year from the prior year’s P72.8 billion to P78.1 billion in 2014, propelled by growth in the Globe Postpaid and mass-market TM brands. Driven by the rapid expansion of the postpaid base, which stood at 2.3 million at the end of the year, Globe Postpaid revenues improved 11% to P29.9 billion from P27.1 billion last year.

For the prepaid segment, TM had another banner year with a 14% growth in revenues and a 21% increase in customer base compared to last year. TM now accounts for 51% of the total mobile subscriber base. Despite the continued pressures on yields with the increasing multi-SIM incidence in the market, as well as the popularity of value-based bucket and unlimited offers for voice and SMS services, total prepaid revenues improved by 5% to P48.2 billion from P45.7 billion a year ago, signaling its return on a growth track. Total mobile subscriber base stood at 44.0 million as of end-December 2014, up by a solid 14% from the 38.5 million a year ago.

The rapid growth momentum for Globe’s broadband businesses continued in 2014, registering steady double digit growths of 22% for revenues and 37% growth customer base year-on-year. Globe ended the year with nearly 2.8 million broadband subscribers, with the strong growths registering across fixed broadband, wireless broadband and long-term evolution (LTE) solutions of 16%, 42% and 377%, respectively. The introduction of more affordable products & competitive tablet bundles throughout the year and the expanded pervasiveness of the fixed and wireless broadband network stimulated the robust performance in the year just ended.

The company’s fixed line data segment likewise posted 17% growth in revenues of P5.5 billion, or P790 million higher compared to the P4.7 billion revenues posted in 2013, as the corporate demand for various communications and connectivity solutions continue to grow. Also, the fixed line voice segment improved by 7% to P2.8 billion from P2.6 billion the previous year, given the continued popularity of bundled internet and landline plans at competitive price points.

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Total consolidated EBITDA reached a record P39.3 billion in 2014, up by P2.8 billion or 8% against the P36.5 billion registered in 2013, as the revenue gains fully offset the increase in operating expenses. Operating expenses, which include subsidy and other operating expenses, grew by 11% from P54.0 billion in 2013 to P59.8 billion in 2014. Higher spending across all accounts, except for interconnect and re-contracting costs, was largely to support management strategies, business, subscriber and data-network expansion, and post-Yolanda restoration activities.

In addition, the increase in subsidy and marketing spending resulted from the successful launch of the latest smartphones from Apple and Samsung (iPhone 6/6 Plus; Samsung Note 4) during the last quarter of the year. However, the increase in expenses was partly cushioned by lower interconnect costs year-on-year. The continued surge in Globe’s mobile subscriber base has led to the decreasing inter-network traffic largely coming from domestic core services given various intra-network offers.

Consolidated EBITDA margin for 2014 remained steady at 40% year-on-year, in line with management’s earlier guidance. Driven by the growth in EBITDA coupled with lower depreciation expenses, largely on accelerated depreciation (from P9.1 billion in 2013 to only P1.6 billion in 2014), and a decrease in non-operating charges, Globe Telecom’s all-time high net income surged to P13.4 billion in 2014, 170% higher against the P5.0 billion net income reported in 2013. Core net income, which excludes the impact of accelerated depreciation and other non-recurring charges, likewise grew 25% year-on-year to an all-time high of P14.5 billion from P11.6 billion in 2013.

For 2015, the company expects the market to remain challenging and competitive, particularly given the shifting focus of the customer’s lifestyles and usage into the digital world. Against this environment, the company believes that the current revenue momentum built, coupled with the adaptive platform of digital lifestyle offers to cater to the subscribers’ changing lifestyle, could further push revenues to increase by high single-digit from 2014 level. EBITDA margin is expected to remain around 40%, as margins would be continuously impacted by the growth of our postpaid business and the increasing contribution of lower-margin data-related products.

The company’s new capital expenditures for 2015 are programmed to be approximately $650 million, which remains consistent with the original CAPEX program earlier guided. With the growing demand for data and internet connectivity, the company anticipates that approximately 75% of said CAPEX would be related to data, including spend for deployments of LTE mobile and LTE @Home, capacity and coverage augmentation of the 3G, HSPA+ and DSL network, as well as requirements for domestic transmission and international cable capacities. The balance of the CAPEX is seen to be spent for business support systems in line with product innovations, and other corporate CAPEX. With the $200 million CAPEX, which was initially estimated in 2014, expected to slide into the early parts of 2015, total cash CAPEX for 2015 would be approximately $850 million.

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Globe

Globe Logs over 11M Prepaid SIM Registrants, urges Customers to Register before April 26 Deadline

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Globe, the leader in Mobile, has registered more than 11 million active prepaid SIMs around a month after the law mandating all Filipinos to register their SIMs took full effect.

Globe hit the milestone 11-million mark on Monday, January 30, 2023, a month after the SIM Registration Act was rolled out as a measure to stop cybercrime, including scam messages that proliferated due to the anonymity provided by prepaid SIMs.

“We are grateful to our customers for promptly registering their SIMs. We understand the importance of addressing the proliferation of scam and spam messages and have made it our priority to provide our customers with a seamless registration process. We are committed to meeting the deadline and continuing our efforts to protect our customers from scammers and fraudsters,” said Darius Delgado, Head of Globe’s Consumer Mobile Business.

Globe urges its customers who have yet to register to visit its user-friendly registration portal https://new.globe.com.ph/simreg. There are an estimated 87.4 million existing SIM users under the Globe network.

Registration via the GlobeOne app will begin in February as an added channel where customers may register their SIMs. As a user of GlobeOne, customers will have access to exclusive offers and deals that are available only in the app.

Globe also provided support for government-led assisted registration in priority sites nationwide from January 25 to 27. Globe established booths in 15 areas and provided assistance to anyone who needed help, especially those in need of special assistance, including senior citizens, PWDs awww and those using basic/feature phones.

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Other than supporting the NTC-led assisted SIM registration, Globe has also started rolling out its own on-site assistance booths across the country. From January 27 to 29, it led SIM registration assistance in 30 Puregold branches in strategic locations in Luzon, Visayas and Mindanao. It will extend SIM registration assistance in other locations soon.

These efforts aim to provide inclusive ways to get its customers registered by the April 26, 2023 deadline. Users who fail to complete their registration on time will have their SIMs deactivated.

Even before the new law was implemented, Globe has taken several steps to curb disruptive messages through proactive blocking, threat intelligence partnerships with financial institutions, a customer reporting portal, plus an awareness and education campaign to help customers with online protection.

To learn more about Globe and the SIM registration process, visit https://www.globe.com.ph/register-sim-card.html.

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Globe Deactivates, Blacklists More than 50,000 SIMs Linked to Fraud in 2022

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Leading digital solutions platform Globe deactivated and blacklisted more than 50,000 SIMs last year as it continued to intensify consumer protection initiatives amid the rising cases of online fraud.

Globe deactivated 20,225 SIMs and blacklisted 35,333 SIMs involved in scam and spam messages in 2022 alone as part of its campaign for internet safety.

This was on top of the record 2.72 billion scam and spam messages it blocked last year, 83.4 million of which were bank-related. All these efforts have been on-going to protect customers from harmful content and fraud before the enactment of the SIM Registration Act.

“Globe recognizes the growing threat posed by scammers, who use various tactics, including text messages, to deceive innocent victims into giving up personal information that could be used to compromise their financial accounts. We will continue to invest in our cybersecurity program to protect our customers from these unscrupulous individuals,” said Anton Bonifacio, Globe Chief Information Security Officer.

Under its filtering protocol, Globe deactivates SIMs within its network once detected to have been involved in fraud. Meanwhile, SIMs outside of the Globe network are blacklisted to prevent them from sending to Globe.

Globe Deactivates SIM Blocked

On its own, Globe has taken a proactive approach to combat cybercrime schemes through various initiatives. It has implemented blocking mechanisms, established partnerships with financial institutions for threat intelligence, created a customer reporting portal, and launched an awareness and education campaign to empower customers with the knowledge and tools they need to protect themselves.

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Meanwhile, in a move to address growing concern over the use of unregistered SIMs in committing cybercrimes, the government introduced Republic Act No. 11934, also known as the SIM (subscriber identity module) Registration Act. Signed into law in October, the measure requires all mobile and broadband users to register their SIMs with their respective service providers to ensure that they are properly identified.

As of January 25, Globe has logged 10.4 million registrations of prepaid SIMs.

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Globe’s 5G network expands to 237 sites in VisMin, Connects more Consumers and Businesses #Globe5G #VisMin

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Leading digital solutions platform Globe expanded its 5G coverage to 212 sites in Visayas and 25 in Mindanao by the end of the third quarter in 2022, providing more consumers and businesses with improved connectivity and access to faster data speeds.

The company’s 5G network is now expanding and available to most of the population in Davao City, Cebu, Iloilo City, Zamboanga City, Cagayan de Oro City, Boracay and Bacolod City.

The expansion of 5G technology in Visayas and Mindanao is intended to help bridge the digital divide between these regions and the rest of the country. It aims to support economic development and enable residents to access a wider range of digital services and opportunities.

The deployment is also beneficial to the growth of new industries and businesses in the said areas. It can inspire innovation and competitiveness as companies seek to provide the best possible services to their customers.

Globe's 5G network expands to 237 sites in VisMin, Connects more Consumers and Businesses #Globe5G #VisMin

“We believe that the expansion of 5G technology in Visayas and Mindanao is essential for driving economic growth, supporting innovation, and providing access to fast and reliable digital services for residents and businesses in these regions. It will also help spur further investment and support the emergence of a vibrant and dynamic digital economy,” said Joel Agustin, Globe Senior Vice President for Network Planning & Engineering.

As a pioneering provider of 5G technology in the Philippines, Globe is committed to delivering improved customer service and reliable, consistent data services to its customers.

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By scaling up the rollout of its 5G network, Globe is taking a major step towards building a more connected and technologically advanced society in the Philippines. It is helping drive the adoption of 5G technology and paving the way for the next generation of digital innovation.

5G technology is capable of delivering internet speeds up to 100 times faster than 4G. It also has less lag, making it suitable for video streaming and gaming.

To learn more about Globe, visit www.globe.com.ph.

 

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