Globe Telecom, Inc.

GLOBE ANNOUNCES 4Q AND FULL YEAR 2010 RESULTS;
STRONG FINISH TO THE YEAR WITH 4Q REVENUES NEARING RECORD PEAKS:
FULL-YEAR NET INCOME OF P 9.7 BILLION, CAPEX OF P 19.5 BILLION;
MOBILE SUBSCRIBERS NOW AT 26.5 MILLION including
OVER ONE MILLION POSTPAID SUBSCRIBERS,
BROADBAND CUSTOMERS NOW AT 1.1 MILLION;
DECLARES FIRST SEMI-ANNUAL CASH DIVIDEND OF P31 PER COMMON SHARE
Globe Telecom, Inc. closed the year on a high note with normalized fourth quarter
service revenues of P16.2 billion nearing all-time highs. The Company thus ended the
year with service revenues of P62.0 billion, just slightly below prior year’s level of P62.4
billion, and an improvement over the 2% or P1.1 billion gap as of the first three quarters
of the year.
Revenues have been normalized to exclude the one-time, upward
adjustment of P526 million representing prepaid load credits that have either expired or
have already been used up. Including this one-off adjustment, consolidated service
revenues for the fourth quarter and the full year would be P16.7 billion and P62.6 billion,
respectively.
Fourth quarter mobile revenues were 9% higher than the prior quarter and are the
highest in six quarters, given the strong demand for voice and data services during the
holiday season. Meanwhile, full year, normalized mobile revenues of P50.0 billion were
6% lower compared to last year given the intense price competition in the market. The
fixed line and broadband business continued to grow at a fast pace, rising 32%
compared to last year and 2% compared to the prior quarter. Broadband and fixed line
revenues totaled P12.1 billion, and comprised 19% of consolidated service revenues
compared to 15% a year ago.
The Company ended the year with a total mobile SIM base of 26.5 million, 14% higher
than 23.2 million in 2009. Steady gross additions and declining churn led to net SIM
additions of 1.1 million this quarter – the Company’s highest since 2Q08.
Globe
Postpaid added 83,000 new subscribers this quarter, surpassing full year 2009 net
additions, to close the year with nearly 1.1 million customers. The innovative My Super
Plan and My Fully Loaded Plan, which allow subscribers to customize their plans, have
both contributed to the surge in Globe’s postpaid clients. Meanwhile, the Company’s
efforts to revitalize its prepaid brands, together with the clean-up of lower-quality
subscribers, have translated to net subscriber gains for both Globe Prepaid and TM
which closed the year with a SIM base of 13.8 million and 11.6 million, respectively.
Globe Prepaid, in particular, added more than 480,000 SIMs this period, more than
double last quarter’s level, and comprising 45% of this quarter’s total net SIM additions.
The total prepaid segment accounted for 93% of full year’s net incremental subscribers
which reversed the previous year’s net reduction of about 1.4 million SIMs.
The broadband business likewise registered an impressive performance with total
subscribers reaching 1.1 million at the end of the year, up 50% compared to the prior
year. This segment comprises postpaid and prepaid subscribers of Globe Broadband
Tattoo, the Company’s fully mobile broadband service, as well as Globe WiMAX and
DSL for at-home internet access. Wireless broadband subscribers from the Company’s
3G/HSPA and WiMax offerings now comprise 76% of total subscriber base, up from
70% in 2009.
The Company continued to invest in meeting the needs of its growing subscriber base
by upgrading and modernizing its networks, increasing capacities to meet the surge in
traffic, and improving its customer service capabilities. As a result, operating expenses
and subsidy of P29.0 billion were 12% higher than the previous year’s P26.0 billion.
Network-related costs alongside higher marketing and outsourced services were the key
drivers behind the growth in full year expenses. Operating expenses for 2009 also
included reversals arising from the settlement of previously provisioned receivables and
other one-time adjustments. On a normalized basis, excluding these one-off adjustments,
operating expenses and subsidy rose by a smaller 9% instead of the reported 12%
growth.
With flat full year revenues and higher operating expenses, normalized consolidated
EBITDA declined by 9% from P36.5 billion to P33.0 billion.
While mobile margins
remained healthy at 63%, the fast-growing but lower-margin fixed line and broadband
businesses diluted consolidated EBITDA margin to 53% compared to previous year’s
58%. Coupled with higher depreciation expenses arising from the Company’s continued
expansion of its mobile and broadband networks, full year net income of P9.7 billion was
2
22% lower than last year’s P12.6 billion, but was an improvement over the 24% gap as
of the first three quarters. Excluding foreign exchange and mark-to-market gains and
losses as well as non-recurring items, core net income stood at P9.1 billion compared to
the previous period’s P12.0 billion.
“Our fourth quarter results are encouraging. Our postpaid brand delivered record
subscriber additions, while our prepaid brands’ performance have improved across all
key metrics, driving good growth in top-up and usage levels. Meanwhile, our broadband
and
corporate
data
businesses
continued
to
grow
steadily,
providing
good
counterbalance to a maturing mobile business. This should provide us momentum going
into 2011, which we expect to be another challenging year,” said Ernest L. Cu, President
and CEO of Globe Telecom, Inc. “We believe our programs are starting to gain traction.
However, as this is a hypercompetitive industry, we need to move with even more
urgency towards transforming ourselves and the way we operate in order to be the
brand of choice,” added Mr. Cu.
In the fourth quarter, Globe further intensified its subscriber acquisition campaign with
the introduction of new and affordable deals in time for the holiday season.
The
Company offered more handsets and gadget bundles for its postpaid plans: My Super
Plan, My Fully Loaded Plan, and Platinum Plan. Globe similarly launched another firstin-the-market offering, SuperFree Weekends, which is a load accumulator program that
rewards Globe Prepaid subscribers with 200 SMS to all networks and one hour of mobile
internet service during weekends upon accumulation of a total of P199 worth of load
from Monday to Friday.
Load amount may be in any denomination and may be
purchased from Globe’s various reloading channels such as AutoloadMax, call cards, via
partner banks and ATMs, GCash2Load, and via E-pins, except Share-A-Load.
Meanwhile, to meet the increasing demand for mobile internet services, Globe launched
two BlackBerry® data plans for its postpaid and prepaid subscribers.
BlackBerry®
Messaging gives subscribers unlimited push email and instant messaging via
BlackBerry® Messenger, Yahoo! Messenger, AOL Instant Messenger, MSN Messenger,
and Google Talk. BlackBerry® Social, meanwhile, provides unlimited access to popular
networking sites such as Facebook, Twitter, and MySpace, and allows instant
messaging as well. Both data plans are priced at P300 each for 30 days. The growing
3
interest for internet access driven by the introduction of new and exciting access devices
such as tablets and smartphones has likewise prompted Globe to develop more mobile
browsing plans. Globe Tablet Plans is a set of data plans for tablet devices that come in
postpaid and prepaid variants. Globe Postpaid customers can either access the internet
for a cumulative 50 hours for as low as P499 for 30 days, or surf all they want for only
P999 a month.
Globe Prepaid subscribers, on the other hand, can enjoy unlimited
internet access through SuperSurf for as low as P50 for 1 day, or for P220 for 5 days.
By using the Globe SIM, subscribers can enjoy mobile browsing at speeds of up to 2
Mbps.
Similarly, to entice even more customers to try surfing the internet on their mobile
phones, Globe reduced the fee for its 30-day subscription to SuperSurf for both Globe
Postpaid and BlackBerry® subscribers from P1,200 to P999 a month. With a lower
monthly fixed rate, subscribers can have unlimited internet access using their cellphones
without having to worry about costs and hidden charges.
For frequent travelers as well as Filipinos based abroad, Globe continued to offer
relevant services at affordable rates.
During the period, the Company introduced
PowerRoam to make international roaming more convenient and affordable for its
postpaid subscribers. PowerRoam is an add-on roaming consumable plan which allows
subscribers to enjoy discounted roaming rates in Globe’s preferred partners in 15
countries and territories. The service is valid for 30 days and available at Plans 499, 999
and 2999. Alternatively, Filipinos who wish to connect with their loved ones abroad may
also use the Company’s new P200 denomination for Globe tipIDD card which provides
as much as 80 IDD minutes from any Globe, TM, or Globe landline phone to anywhere
in the world.
On the broadband front, Globe further boosted its service offerings with the launch of the
Tattoo SuperStick. The stick is an all-in-one modem and router that allows subscribers
to connect to the internet at speeds of up to 3 Mbps. The gadget’s shareable WiFi
connection also allows a maximum of 5 different devices within 100 meters to access the
internet at the same time. The Tattoo SuperStick is also the fastest broadband stick in
the market and is available for free on Tattoo Postpaid Plan 1299. The plan also comes
with 200 free SMS monthly, on top of 1 month of free McAfee antivirus protection. The
Company also reduced the price of its Globe Broadband Tattoo prepaid dongle kit from
4
P1,495 to P1,245 during the holiday season, in response to similar price moves by
competition.
Capital expenditures for 2010 totaled to P19.5 billion compared to P24.7 billion the prior
year. Of this total, about P9.1 billion was for wired and wireless broadband capacities,
while around P7.9 billion was used to expand and upgrade the Company’s mobile
network.
For 2011, the Company expects to spend an additional US$500 million,
including carryover spend from projects started in 2010. “This year, we will continue to
build on service quality as a key differentiator for Globe. We will implement a pro-active
approach in meeting the upsurge in voice and data requirements across all customer
segments, including the larger enterprises. We will also improve power and transmission
management to meet our quality objectives in terms of network availability and capacity,”
said Mr. Cu.
Finally, in line with the Company’s dividend policy of distributing between 75% to 90% of
prior year’s net income, the Board of Directors declared the first semi-annual cash
dividend of P31 per common share, payable on March 18, 2011 to shareholders on
record as of February 22, 2011. On an annualized basis, the first semi-annual cash
dividend payment of P4.1 billion represents 84% of 2010 net income, similar to last
year’s pay-out rate, and translates to an attractive dividend yield of 7.8%, using end2010 share prices.
5
2010 FINANCIAL SUMMARY
Globe Group
Quarter on Quarter
In Php Mn
Service Revenues *…………………………
Mobile……………………………………..
Fixed line Voice…………………………..
Fixed line Data…………………………...
Broadband………………………………..
Operating Expenses and Subsidy ………
EBITDA * ……………………………………..
EBITDA Margin………………………………
Net Income After Tax (NIAT)………………
Core Net Income **………………………….
Q4
Year on Year
Q3
QoQ
2010
2010
Change
(%)
16,214
13,006
674
890
1,644
7,990
8,224
51%
2,297
1,944
15,084
11,952
700
901
1,531
7,272
7,812
52%
2,392
1,946
7%
9%
-4%
-1%
7%
10%
5%
-4%
-
31-Dec
31-Dec
YoY
2010
2009
Change
(%)
62,029
49,977
2,816
3,488
5,748
29,016
33,013
53%
9,745
9,075
62,443
53,321
2,795
3,038
3,289
25,981
36,462
58%
12,569
12,003
-1%
-6%
1%
15%
75%
12%
-9%
-22%
-24%
* Service revenues and EBITDA have been normalized to exclude the impact of a one-time upward adjustment, recorded
in 4Q 2010, amounting to P526 million representing prepaid load credits that have either expired or have already been
used up.
** Core net income excludes all foreign exchange and mark-to-market gains and losses, as well as all non-recurring items
such as the P526 million adjustment discussed above.
•
Consolidated service revenues in 2010 of P62.0 billion were slightly below previous
year’s P62.4 billion. Mobile revenues were down 6% with declining yields coming
from the unlimited and bucket offerings, and price pressures resulting from intense
competition. The fixed line and broadband businesses, on the other hand, rose 32%
year-on-year with sustained demand from the corporate sector and the 50%
expansion of broadband subscriber base from a year ago. As a result, revenue mix
shifted with the mobile business comprising 81% of total service revenues from 85%
in 2009, and the fixed line and broadband segment accounting for 19% of the total
from 15% in 2009.
•
On a quarter-on-quarter basis, this quarter’s service revenues of P16.2 billion were
the highest quarterly performance in two years, nearing the all-time high achieved in
the fourth quarter of 2008. Mobile service revenues were boosted by the surge in
postpaid plan subscriptions coupled with increased usage and top-ups in both the
Globe Prepaid and TM brands. The broadband business, which recently broke the 1
million subscriber mark, remained on the growth track, and compensated for the
relatively flat performance of the fixed line voice and data segments.
•
Operating expenses and subsidy increased by 12% from a year ago, from P26.0
billion to P29.0 billion, driven largely by higher network costs, marketing, outsourced
services, and receivable-related provisions. Network-related charges such as
electricity, fuel, repairs and maintenance grew as a result of an expanded 2G, 3G
and broadband networks. These were offset by lower rent resulting from the
termination of temporary cable leases following the completion of FOBN2, the
Company’s 2nd fiber optic backbone network. Subsidy and marketing expenses also
rose by 4% compared to last year, and inched up to 9% of service revenues from 8%
6
in 2009.
Finally, operating costs in 2009 included reversals arising from the
settlement of previously provisioned receivables, and other one-time adjustments.
Excluding these one-time adjustments, operating expenses and subsidy would have
grown by 9% compared to the reported 12%.
•
With service revenues flat and operating expenses up, consolidated EBITDA was
down 9% from P36.5 billion to P33.0 billion in 2010. While mobile EBITDA margin
remained healthy at 63%, the higher contribution of the fast-growing but lowermargin fixed line and broadband business diluted consolidated EBITDA margin to
53% from 58% in 2009. Depreciation charges, on the other hand, grew 4% driven by
investments in the broadband and mobile networks.
•
The Company closed the year with net income after tax of P9.7 billion, 22% lower
than previous period’s P12.6 billion. Last year’s net income included a one-time
after-tax gain of about P398 million from an equipment exchange transaction with an
equipment supplier. Excluding foreign exchange, mark-to-market gains and losses,
as well as non-recurring items, core net income stood at P9.1 billion, down 24% from
past year’s P12.0 billion.
•
Total capital expenditures for the year amounted to P19.5 billion (or about US$431
million) driven by the sustained expansion and upgrade of the Company’s broadband
and mobile networks. This is 21% lower than year ago spending of P24.7 billion
which included a one-time spend in the Company’s domestic backbone network
FOBN2, a second international cable landing station in North Luzon, and the related
investment in the TGN-Intra Asia submarine cable system. As a result, total capital
expenditures as a percentage of service revenues dropped from 40% a year ago to
31% in 2010. At the end of the year, Globe has a total of 11,660 base stations and
6,698 cell sites to support its 2G, 3G and WiMAX services.
•
For 2011, Globe is allocating about US$500 million in capital expenditures. This
includes about US$69 million of carryover spending from 2010. Of the US$500
million earmarked for the year, around US$185 million is allocated for the broadband
business, while another US$160 million is allotted for the mobile telephony business
to expand capacities, modernize equipment, and improve network quality. This
year’s capex also includes US$65 million for Globe’s corporate data business and to
strengthen Globe’s backend systems and delivery platforms. Finally, 2011 capex
includes about US$90 million in carryover spend for international cable facilities and
other one-time investments, including the construction of a new corporate office that
will consolidate current offices into one location.
7
Mobile Business
Quarter on Quarter
In Php Mn
Q4
2010
Year on Year
Q3
QoQ
2010
Change
(%)
31-Dec
2010
31-Dec
YoY
2009
Change
(%)
Service Revenues
Voice.….……………………………….....
6,617
6,222
6%
25,678
26,497
-3%
Data..……………………………………...
6,389
5,730
12%
24,299
26,824
-9%
Mobile Net Service Revenues *…………..
13,006
11,952
9%
49,977
53,321
-6%
* Service revenues have been normalized to exclude the impact of a one-time upward adjustment, recorded in 4Q 2010,
amounting to P526 million representing prepaid load credits that have either expired or have already been used up.
•
Mobile revenues in 2010 were affected by continued multi-SIM usage, subscriber
preference for value offers, and price pressures resulting from intense competition.
Despite an overall growth in voice and SMS traffic, revenues were weighed down by
the lower-yield bucket and unlimited services. As a result, the mobile business
closed the year with service revenues of P50.0 billion, 6% below previous year’s
level of P53.3 billion. In relation to the third quarter, however, revenues increased by
9% in the fourth period on higher postpaid plan subscriptions, growth in prepaid
subscribers, and higher ARPUs and usage during the holiday season.
•
Mobile voice revenues accounted for 51% of total mobile service revenues in 2010
and closed at P25.7 billion, down 3% from previous year. Revenues from unlimited
and bulk voice subscriptions as well as roaming services were significantly higher
than in 2009. These gains, however, were not enough to fully compensate for the
decline in regular voice and IDD services.
•
Mobile data revenues, on the other hand, accounted for 49% of total mobile service
revenues, and decreased by 9% from P26.8 billion to P24.3 billion in 2010.
Revenues from mobile browsing nearly doubled year-on-year given the popularity of
social networking sites, affordable pricing of mobile data plans, and the increase in
number of smartphones and access devices available in the market. Revenue gains
from this segment, however, were unable to fully cover the decline in regular SMS
revenues which remained to be affected by the lower-yield bucket and all-you-can
text service offerings.
8
Key Drivers for the Mobile Business
Quarter on Quarter
31-Dec
2010
2009
4%
26,470,859
23,245,006
14%
982,878
8%
1,066,137
851,368
25%
25,404,722
13,834,716
11,570,006
24,420,124
13,351,243
11,068,881
4%
4%
5%
25,404,722
13,834,716
11,570,006
22,393,638
13,048,861
9,344,777
13%
6%
24%
1,176
1,168
1%
1,192
1,283
-7%
155
92
146
87
6%
6%
153
92
182
98
-16%
-6%
3,959
3,668
8%
3,489
5,382
-35%
28
27
56
24
-50%
13%
37
27
37
34
-21%
1.32%
1.63%
1.92%
1.95%
Globe Prepaid ……………...
5.65%
6.39%
6.23%
6.75%
TM..…………………………..
6.41%
6.76%
6.62%
8.35%
Prepaid .………………………….
Globe Prepaid ……………..
TM …………………………..
Ave. Revenue Per Subscriber
(ARPU)
Net ARPU
Globe Postpaid . ………………..
Prepaid
Globe Prepaid ……………...
TM..…………………………..
Subscriber Acquisition Cost
(SAC)
Globe Postpaid………………….
Prepaid
Globe Prepaid……………....
TM…………………………....
Ave. Monthly Churn Rate (%)
Globe Postpaid ...………………
Q3
2010
2010
26,470,859
25,403,002
1,066,137
Year on Year
31-Dec
Cumulative Subscribers (or
SIMs) – Net End of Period
Globe Postpaid . ………………..
Q4
QoQ
Change
(%)
YoY
Change
(%)
Prepaid
* ARPUs have been normalized to exclude the impact of a one-time upward adjustment, recorded in 4Q 2010, amounting
to P526 million representing prepaid load credits that have either expired or have already been used up.
•
Globe closed the year with a total mobile SIM base of 26.5 million, 14% higher than
previous year’s 23.2 million and 4% above third quarter’s level of 25.4 million. Gross
additions in the fourth quarter was sustained at 5.6 million, bringing full year gross
acquisitions to 21.8 million, 12% better than year ago level of 19.4 million. With
churn rates improving across all brands, net subscriber additions once again
breached the 1 million mark in the fourth quarter, the highest quarterly output since
2Q08. This brought full year incremental subscribers to 3.2 million compared to
previous year’s net reduction of 1.4 million.
•
Globe Postpaid reached a record high net acquisition in the fourth period with over
83,000 new subscribers. As a result, the postpaid brand hit an all-time high in full
year net additions with about 215,000 new subscribers in 2010. Globe Prepaid
likewise posted strong quarter growth by bringing in over 480,000 net acquisitions.
This brought full year net additions to over 785,000 against previous year’s net
reduction of about 244,000. TM similarly sustained its strong performance with
9
fourth quarter net additions of over 500,000, which brought its 2010 total to 2.2
million compared to 2009’s net reduction of 1.2 million.
•
Blended net ARPU for the year was at P168, 9% lower year-on-year driven by loweryield value offers and the negative impact of the strong peso on US$-linked
international long distance revenues. On a quarter-on-quarter basis, however,
blended net ARPU of P167 was seasonally higher than third quarter level, with
ARPU growth across all brands.
•
Globe Prepaid subscriber acquisition cost (SAC) remained flat against last year’s
level, while TM SAC was down 21% year-on-year on lower subsidies. Consolidated
prepaid SAC remains recoverable within a month’s net ARPU. On the other hand,
postpaid subscriber acquisition cost substantially declined from a year ago due
largely to lower subsidy, advertising and promotion spend.
Costs remain
recoverable within the 24-month contract period for postpaid subscribers.
Fixed Line and Broadband Business
Quarter on Quarter
In Php Mn
Net Service Revenues
Fixed Line Voice ….………………….
Fixed Line Data ……………………….
Broadband ..…………………………...
Fixed Line & Broadband Net Service
Revenues .…………………………………
•
Q4
Q3
2010
2010
Year on Year
QoQ
Change
(%)
31-Dec
31-Dec
2010
2009
YoY
Change
(%)
674
890
700
901
-4%
-1%
2,816
3,488
2,795
3,038
1%
15%
1,644
1,531
7%
5,748
3,289
75%
3,208
3,132
2%
12,052
9,122
32%
Globe’s fixed line and broadband business continued to show strong growth, with
service revenues rising 32% year-on-year, driven by the sustained robust
performances of the broadband and fixed line data segments. The broadband
business increased its revenues by 75% against last year’s figure on the back of
strong subscriber growth, while the fixed line data business continued to be fueled by
strong demand from the BPO, trade, retail, and services sectors.
10
Quarter on Quarter
Year on Year
Q4
Q3
QoQ
Change
(%)
31-Dec
31-Dec
2010
2009
YoY
Change
(%)
2010
2010
Cumulative Fixed Line Voice Subs
Net (End of period) 1……………........
618,606
599,059
3%
618,606
589,331
5%
Cumulative Broadband Subscribers
Wireless 2 …………………………….
Wired………………………………….
819,276
255,077
762,870
243,590
7%
5%
819,276
255,077
499,383
216,089
64%
18%
Total (end of period)…………………..
1,074,353
1,006,460
7%
1,074,353
715,472
50%
1
Includes DUO and SUPERDUO subscribers. Third quarter figures have been restated for comparability.
2
Includes fixed wireless and fully mobile broadband subscribers.
•
Cumulative fixed line voice subscribers grew 5% year-on-year to almost 619,000,
driven by higher subscriptions to the postpaid DUO and SUPERDUO services, as
well as to the bundled voice and broadband plans. This resulted to the slight year-onyear increase in fixed line voice revenues. On a sequential basis, cumulative voice
subscribers increased by 3% driven mainly by higher subscriptions to both postpaid
and prepaid DUO and SUPERDUO service.
•
Broadband subscribers grew by 50% from last year’s level to close with more than
1,074,000 subscribers, driven by significant gains in the fully mobile segment. The
wireless segment accounted for 89% of cumulative net additions for the year and
76% of total broadband subscribers. Full year revenues were up 75% to P5.7 billion,
with the segment now comprising 9% of consolidated revenues compared to 5% last
year.
For questions, please contact:
Ditas L. Santamaria
Financial Planning & Analysis
(632) 730-2982
Email: alsantamaria@globetel.com.ph
JoMari S. Fajardo
Investor Relations
(632) 730-2820
Email: ir@globetel.com.ph
11
ANNEXES
Globe Group
Quarter on Quarter
In Php Mn
Q4
2010
Financing Costs – net
Interest Expense………………………………..
Gain (Loss) on derivative instruments………..
Swap costs and other financing costs………..
Foreign Exchange (loss) / gain – net...............
Year on Year
Q3
QoQ
2010
Change
(%)
31-Dec
31-Dec
YoY
2010
2009
Change
(%)
(534)
(4)
(25)
(13)
(576)
(512)
(42)
(10)
683
119
4%
-90%
150%
-102%
-584%
(1,982)
(28)
(58)
465
(1,603)
(2,097)
(47)
(39)
287
(1,896)
-5%
-40%
49%
62%
-15%
Interest Income ……………………………………
Others – net………………………………..............
57
(59)
49
45
16%
-231%
219
(31)
272
523
-19%
-106%
Total Other Expenses……………………………
(578)
213
-371%
(1,415)
(1,101)
29%
Quarter on Quarter
Q4
2010
Year on Year
Q3
QoQ
2010
Change
(%)
31-Dec
31-Dec
YoY
2010
2009
Change
(%)
Total ILD Revenues (in Php Mn) ………………
3,093
3,128
-1%
12,794
14,317
-11%
Average collection rates for the period (Php to
US$1)………………………………………………..
43.747
45.933
-5%
45.314
47.777
-5%
Total ILD Minutes (in million minutes) 1 ……..
Inbound……………………………………………..
Outbound.…………………………………………..
ILD Inbound / Outbound Ratio (x) ……………….
598
501
97
5.16
587
491
96
5.11
2%
2%
1%
2,349
1,968
381
5.17
2,388
2,019
369
5.47
-2%
-3%
3%
1
ILD minutes originating from and terminating to Globe and Innove networks.
12
Globe Group
Quarter on Quarter
In Php Mn
Q4
Q3
QoQ
2010
2010
Year on Year
3131YoY
Dec
Dec
Change
2010
2009
(%)
4,239
2,948
44%
2,993
1,418
111%
1,246
1,530
-19%
Cost of sales……………………………………
Less: Non-service revenues………………….
Subsidy…………………………………………
1,291
892
399
1,103
694
409
Change
(%)
17%
29%
-2%
Selling, Advertising and Promotions ……….
Staff Costs ……………………………………...
Utilities, Supplies & Other Admin Expenses...
Rent………………………………………………
Repairs and Maintenance……………………..
Provisions ………………… …………………...
Services and Others……………………………
Operating Expenses………………………….
1,268
1,281
924
762
913
350
2,093
7,591
1,090
1,075
891
737
829
415
1,826
6,863
16%
19%
4%
3%
10%
-16%
15%
11%
4,269
5,089
3,339
2,809
3,273
1,466
7,525
27,770
3,766
4,981
2,693
3,469
2,582
725
6,235
24,451
13%
2%
24%
-19%
27%
102%
21%
14%
Depreciation and Amortization …………….
Costs and Expenses………………………….
4,836
12,826
4,584
11,856
5%
8%
18,086
47,102
17,388
43,369
4%
9%
Globe Group
In Php Mn
Capital Expenditures (Cash) …………………………….
31-Dec
31-Dec
2010
2009
YoY change
(%)
18,813
22,057
-15%
Increase (Decrease) in Liabilities related to Acquisition
of PPE & Capitalized Asset Retirement Obligations…..
654
2,645
-75%
Total Capital Expenditures1 ……………………………
19,467
24,702
-21%
Total Capital Expenditures / Service Revenues (%)…..
31%
40%
1
Consolidated capital expenditures include property and equipment, intangibles and capitalized borrowing costs acquired
as of report date regardless if payment has been made or not.
Globe Group
Balance Sheet Data (in Php Mn)
Total Assets ……………………………………………..
Total Debt ………………………………………………..
Total Stockholders’ Equity ……………………………..
Financial Ratios (x)
Total Debt to EBITDA …………………………………..
Debt Service Coverage…………………………………
Interest Cover (Gross) …………………………………
Debt to Equity (Gross) …………………………………
Debt to Equity (Net) …………………………………….
Total Debt to Total Capitalization (Book) …………….
Total Debt to Total Capitalization (Market) ...………...
31-Dec
31-Dec
YoY
2010
2009
Change (%)
130,628
50,371
46,824
127,644
47,477
47,709
1.50
2.29
10.91
1.08
0.95
0.52
0.32
1.30
2.08
11.89
1.00
0.87
0.50
0.28
2%
6%
-2%
13