Globe Telecom2013 core net
profit up 13%; revenues reach new record
Globe Telecom sustained growth momentum in
2013 as core net profit rose 13% to P11.6 billion as strong performance of its mobile,
broadband, and fixed line data businesses continued to drive revenue growth notwithstanding
the onslaught of natural calamities in the last quarter of the year.
The company’s consolidated service revenues
for 2013 reached a fresh record high of P90.5 billion, up 9% from P82.7 billion
last year, driven by the continued growth in the demand for data connectivity
across the mobile, broadband and fixed line data businesses, which improved by
8%, 20% and 13%, respectively. The robust top-line results prove Globe’s
sustained execution excellence of products and promotions that remain relevant
to its subscribers, backed by its improved network performance, as Globe moves
forward in its network and IT transformation programs.
“We are happy and encouraged by what we
have achieved in 2013, surpassing all our expectations. We have said in the
past that 2013 is a transition year and the most critical period for Globe,
given the network and IT modernization projects we undertook through the year
while competing in a fast evolving market. Our sustained growth momentum is an
evidence of the underlying strengths of our superior products and services and
the differentiated customer experience we provide, said Globe President
&CEO Ernest Cu. “Notwithstanding the impact of the recent devastation in
the Visayas region due to typhoon “Haiyan”, which tempered the seasonal uplift
in the fourth quarter, we still managed to end the year at a high note reaching
all-time high gross consolidated revenues. While the resilience of our
performance is welcome, we will not be complacent and will strive harder in
2014. Globe has always been and will continue to be firmly committed in
creating more value for our customers and shareholders.” Mr. Cu added.
Mobile revenues, which contributed over 80%
of total revenues, grew 8% year-on-year to P72.8 billion compared to the prior
year’s P67.2 billion, owing to the sustained leadership of the Globe Postpaid
brand. Globe continued to invest in acquiring and retaining high-quality
postpaid customers, resulting in the growth of the subscriber base to over two
million, up 17% from last year. The continued expansion of the postpaid
subscriber base has resulted in the sustained growth of postpaid revenues to
P27.1 billion, an 18% improvement year-on-year. On the prepaid segments,
revenues grew 3% year-on-year despite the continued pressures on yields brought
about by the shift from pay-per-use to value-based bucket and unlimited offers
and the pervasiveness of multi-SIM incidence in the market. Total mobile
subscriber base reached 38.5 million as of end-December, up 16% from the 33.1
million a year ago.
Globe’s broadband businesses flourished in
2013, registering sharp growths on both revenues and customer, expanding
respectively by 20% and 22%, year-on-year. Globe ended the year with over 2
million broadband subscribers, with the fixed DSL and nomadic broadband
segments registering growths of 24% and 11%, respectively. The competitiveness
and affordability of the various offers launched throughout the year and the
expanded pervasiveness of our fixed and wireless broadband network contributed
to the robust performance in the year just ended.
The company’s fixed line data segment
registered revenues of P4.7 billion, P524 million or 13% higher compared to
revenues in 2012, mitigating the decline in traditional fixed line voice
services. Growth in fixed line data revenues was attributed to the continuous
demand for various communications and connectivity solutions to address the
requirements of our enterprise clients.
Globe recorded consolidated EBITDA of P36.5
billion in 2013, up P1.5 billion or 4% against the P35.0 billion registered in
2012, as the revenue gains fully covered the increase in operating expenses.
Operating expenses, which include subsidy and other operating expenses, grew by
13% from P47.7 billion to P54.0 billion, largely on increases in subsidy and
re-contracting costs, trade and other provisions, and staff-and network-related
expenses. EBITDA margin for 2013 stood at 40%, against 42% as of end 2012. Driven by the growth in EBITDA, Globe’s core
net income, which excludes the impact of non-recurring accelerated depreciation
charges related to assets affected by the company’s network and IT transformation
programs, grew to P11.6 billion from P10.3 billion in 2012.
On a sequential basis and consistent with
seasonal trends, Globe’s quarterly gross revenues improved 2% in the fourth
quarter of 2013, reaching P23.2 billion from P22.7 billion in the third period
of the year. The recent Haiyancalamity in the central Philippines
softened the revenue growth in the seasonally strong fourth quarter, directly
through its impact on the subscribers in the affected areas and indirectly as
consumers cut back on spending in favor of donating to relief and
rehabilitation efforts.
Consolidated EBITDA registered at P8.2 billion, translating
to EBITDA margins of 35% while core net income for the quarter registered at
P2.1 billion.
Globe continued to lead in the Postpaidsegment
with the AppleTMlaunches during the last quarter of 2013 starting with
the iPhone 5c and iPhone 5s and the eventual release of the new iPad
Air and iPad mini with Retina display. This year’s iPhone launch
(iPhone 5c and iPhone 5s) however, was scaled down and used to
promote aid and relief efforts in light of the recent calamity “Haiyan”
that affected millions of Filipinos in the Visayas region. Subscribers who
attended the event were encouraged to bring in-kind donations as well as donate
via Globe’s GCashfacility. The iPhone 5c and iPhone 5s were
made available under the Company’s suite of first-ever fully customizable
postpaid plans (Best-Ever mySUPERPLAN) and the exclusive gadget upgrade
program (iPhone Forever program).
Under the iPhone Forever program,
new and existing Globe subscribers who are loyal iPhone users can swap their
current devices to get a new iPhone every year for free or with minimal
one-time cash out. The iPhone 5c 16GB can be availed starting at iPhone
Forever Plan 1599, while the iPhone 5s 16GB is available at iPhone
Forever Plan 1999, both for a contract of 24 months and are bundled with 1
gigabyte (GB) of mobile LTE surfing and free calls and texts. Higher value
postpaid plans are also available: iPhone Forever Plan 2999, iPhone Forever
Plan 5599 and iPhone Forever Plan 6999. The iPad Air and iPad
mini with Retina display, on the other hand, can now be availed with the
following postpaid plans for 24 months contract period and complete with 85
hours of LTE surfing: iPad Air 16GB is available for as low as P1,624
monthly at Plan 499 with P1,125 monthly cashout while the 32GB variant is
available for as low as P1,790 monthly at Plan 499 with P1,291 monthly cashout.
Meanwhile, the iPad mini with Retina display 16GB is offered at P1,499
monthly at Plan 499 with P1,000 monthly cashout while the 32GB variant is
available at P1,665 monthly at Plan 499 with P1,165 monthly cashout.
Setting another milestone in Philippine
telecommunications, the company gave its over 38 million subscribers (Postpaid/Prepaid/TM)
free mobile phone access to Facebook for a period of three months until
January 2014 and which was subsequently extended until February 14, 2014. Globe
worked closely with Facebook to enable customer experience innovations for the
best free Facebook offer without the need for Wi-Fi. This campaign is in line
with Globe’s strategy to bring more people online and overcome the fear of
using mobile internet, and increase the habit of mobile browsing and surfing
over Globe’s improved 3G, HSPA+ and LTE networks.
Moreover, Globe Prepaid conducted a
3-day mall gadget sale dubbed “Prepaid on the Go, Great Gadget Sale” wherein
subscribers can get awesome discounts on various brands such as Samsung, Nokia,
LG, Sony, Alcatel, Lenov, O+, Cherry Mobile, MyPhone, and Star Mobile.
Subscribers may also trade-in their old phones or use their rewards points to
enjoy up to 90% off for their purchase of phones and gadgets. Also, in order to
drive subscription to Globe Prepaid’s GoUnli30 (one-day unli
calls/texts, unli chat with the best chat apps) during the Christmas season,
subscription to the promo qualifies its subscribers a chance to win a barkada
trip for 4 to Singapore. Globe likewise launched the “Choose Your Number
SIM” with FREE unlimited calls to Globe/TM and unlimited text to all
networks plus Facebook.
TM, on the other hand,
launched during the quarter TipIDD30 which offer four minutes of
international calls to Saudi, UAE, Kuwait, Bahrain, Italy, UK, Australia and
Japan for only P30 a day and AstigItxt20which gives its subscribers 30
international and all-network texts for only P20 valid for 1 day.
For the Broadband business, Globe
continued to step up its best value offers with the new Tattoo Prepaid tablet
bundles wherein its subscribers can save as much as P2,845 with these new
offers which carry affordable tablet selection starting at P4,995 for a CloudPad
705Wor a SkyWorth S73 and P6,995 for a SkyWorth S82. All
these new bundles come with FREE Tattoo Mobile Wi-Fi that connects up to 10
devices with speeds of up to 7.2 Mbps. Tattoo LTE Mobile Wi-Fi with LTE
speed of up to 42 Mpbs was also made available for only P4,995 with FREE 5GB of
data for 7days. Tattoo Postpaid on the other hand, now offers a FREE
Mobile Wi-Fi with speed up to 12 Mbps with Tattoo unlimited Plan 999.
Globe once again expanded its international footprint with
the launch of Globe local Italy SIM last November 24, 2013. Filipino
communities in Italy can now enjoy calls to Globe in the Philippines for just
five Euro cents per minute, the lowest among all Italian mobile operators. This
was made possible with the partnership with Compagnia Italia Mobile S.r.l., one
of the leading MVNOs in Italy, and Effortel Technologies, a Belgium-based
network enabler company. Italy is now the sixth country where Globe has robust
presence, joining the ranks of the USA, the United Kingdom, Singapore, Hong
Kong and the Kingdom of Saudi Arabia.
GCash, Globe’s mobile
payment and remittance service, is set to expand its network service in the
country by growing its user base with the recent partnership with TORCHe Global
Marketing, Inc. (TGMI), a marketing consultancy firm focused on helping
companies reach out to the widest possible consumer base through the latest
technologies in mobile commerce and advertising. GCashservices that will
be made available for use of TGMI affiliates include PowerPay+ Card, Buy Load
service and Gcashoutlets. Also, during the last quarter
of 2013, several initiatives on GCashwere launched in order to expand
its portfolio of services including real property tax payments via GCashavailable
in Quezon City and Valenzuela; buy through blink coupon codes for subscribers
to experience unlimited Movie and TV show streaming; or convert Gcashto
rewards points. In addition, subscribers can now also apply for BanKO
loan via GCashwith low interest rate, fast approval and hassle-free
loan payments. Loan credit and collection will be through their GCashPowerPay+
wallet. BPI-Globe Banko, the first mobile-based, microfinance-focused
savings bank in the Philippines, have joined hands with US Agency for
International Development, in helping rural communities gain access to formal
financial services using their mobile phones. This partnership was announced
during the launch of the mobile money financial service for the llijan Multi-Purpose
Cooperative.
from The Web Magazine