GLOBE Telecom Posts Record High Revenues in 4Q 2008

Manila. Feb 3, 2009. Globe Telecom recorded its highest quarterly revenue performance in the fourth quarter of 2008 with service revenues of P16.3 billion, up 5% quarter-on-quarter and surpassing the previous best of P16.1 billion from the same period in 2007.

In 4Q 2008, Globe maintained its momentum in wireless subscriber acquisitions by adding one million SIMs, ending the year with a total subscriber base of 24.7 million, up 22% from a year ago. Touch Mobile (TM), Globe's mass market brand, led the growth, accounting for 70% of the 4.4 million net additions in 2008, bringing in more than 3 million incremental SIMs. The record performance was driven by strong holiday demand, spurred by compelling mobile and broadband offers launched in the fourth quarter.

Globe also registered its strongest broadband subscriber take-up in 4Q 2008, driven by healthy demand for its wireless broadband offer. This period’s net additions of about 55,000 exceeded the performance of the first three quarters of the year, enabling Globe to close the year with a broadband subscriber base of 234,000, almost double that of 2007.

The continued expansion of the broadband and corporate data businesses helped cushion the impact of the softness in wireless revenues. Full year consolidated revenues of P62.9 billion were flat compared to 2007 due to the combined effects of a weaker macro-environment and more intense market competition. Wireless service revenues declined by 1% to P55.6 billion from previous year’s P56.4 billion, while Innove wireline revenues improved by 7% to P7.3 billion from P6.8 billion in 2007.

Gerardo C. Ablaza, Jr., President and CEO of Globe Telecom, Inc said “Our strong topline performance in the fourth quarter enabled us to regain some of the ground that we lost in the early part of the year. This also gives us momentum going into 2009, even as we brace ourselves for a more challenging year ahead. ...We are encouraged by the resilient growth of both our mobile and broadband subscriber base, and remain committed to delivering products and services that serve the needs of our subscribers at affordable prices.”

Amidst rising consumer prices and stretched household budgets, Globe introduced various service offerings that complement its unlimited texting packages and its unique per-second voice call offer. In the fourth quarter, Globe launched Tawag236 which allows Globe prepaid and postpaid subscribers to make up to 20 minutes of local calls for only P20. It also introduced UnliCalls Nyt which enables Globe and TM prepaid subscribers to log in unlimited voice minutes at off-peak hours for only P20 and P15, respectively. Both promo offerings cover Globe-to-TM and TM-to-Globe calls with the integration of TM’s subscribers to Globe’s network in mid-2008. For the OFW community, following the successful launch of its TipIDD IDD card, Globe introduced a P25 denomination card. TipIDD offers discounted IDD rates to 15 popular destinations.

Globe conducted a series of 3-Day Sale events in major malls to drive subscriber acquisitions. Globe showcased integrated mobile and broadband packages, Barkada Deals for phone kits, as well as affordable payment schemes for the Apple iPhone 3G. Globe opened up broadband to the wider market by bringing down the cost of modems from P4,500 to P2,500. With the lowered entry costs and with the introduction of a prepaid variant in the third quarter, customer take-up for its Visibility wireless broadband service significantly increased, contributing 60% of the fourth quarter’s net additions for the broadband business.

“Demand for both our fixed and mobile broadband services has been very positive and has exceeded our expectations. We expect broadband growth to continue into 2009 with the increasing affordability of the service and the data devices,” Mr. Ablaza added. “For 2009, our objective is to build on the learnings of 2008, sustain our fourth quarter gains and step up growth for all our businesses. While we will adapt to changes in near-term demand with the slowing economy, we will continue to invest and set our sights on the long-term,” Mr. Ablaza concluded.

Globe reaffirmed its commitment to its dividend policy of distributing 75% of prior year’s net income and to achieving an optimum capital structure. In its meeting today, the Board of Directors declared the first semi-annual cash dividend of P32 per common share, payable to shareholders of record as of February 17, 2009. A total of P4.2 billion in dividends will be paid on March 10, 2009.