GLOBE Subscribers reach 27.3 Million, Broadband Subscribers up 40% To 1.2 Million

(May 10, 2011) Globe Telecom, Inc (PSE:GLO). delivered strong results, with first quarter consolidated revenues reaching a record high of P16.5 billion. The growth momentum in the mobile business was sustained, resulting in service revenues of P13.1 billion. The fixed line and broadband business likewise posted strong revenue performance, surpassing last year’s level by 26% to close at P3.4 billion.

The mobile business posted improvements on most key subscriber metrics, for both the postpaid and prepaid brands. In the first quarter, gross acquisitions for the postpaid brand soared to a new record of over 120,000, anchored on the popularity of the new personalized and affordable subscription plans. Globe Postpaid subscribers stood at about 1.1 million by quarter-end, 30% higher than last year’s level of around 880,000. Prepaid subscribers grew 14% to 26.2 million. This growth was driven by breakthrough services such as SuperAllTxt and AstigTxtAll, the market’s first bucket, all-network text service for Globe Prepaid and TM subscribers, and SuperUnli, an unlimited, intra-network call and text offer. At the end of the first quarter, Globe had a total of 27.3 million subscribers.

The broadband business similarly sustained its expansion with subscriber base now at around 1.2 million. Growth continued to come from Globe Broadband Tattoo, the Company’s nomadic broadband service, and from Globe WiMAX, the Company’s fixed wireless service for at-home use. Wireless broadband subscribers now account for 78% of the total broadband subscriber base.

“Our earlier programs are already translating to improvements in our financial results,” said Ernest L. Cu, President and CEO of Globe Telecom, Inc. “This will provide us the momentum to take on greater challenges ahead, with the market consolidating and Globe now up against an even larger competitor. We will remain focused on differentiating through superior customer experience, and introducing more compelling, relevant products, to include not just core services such as voice and SMS, but also innovations to develop the nascent but highly promising market for mobile internet. The upgrade and modernization of our network infrastructure will also remain a key priority, to enable our networks and platforms to quickly adapt to this fast-moving market,” said Mr. Cu.

To date, the Company has already deployed its 4G mobile technology in 19 pilot areas in Metro Manila which includes Marikina, Quezon City, Makati, Pasay, Las Pinas, Taguig, and Manila. Current subscribers using 3G-enabled mobile phones and those using their broadband dongles in 4G-covered areas will already experience improvements in their calls, text and data services. Starting May 2011, the Company will offer 4G-enabled handsets, devices, and applications to allow subscribers to truly enjoy the 4G mobile experience.

In the first quarter, Globe capitalized on the recent success of its first-in-the-market personalized postpaid plans by reinforcing its service offering with the ALL NEW My Super Plan that gives subscribers greater flexibility in designing their plans. With the ALL NEW My Super Plan, subscribers determine the monthly service fee that best fits their budget by choosing to subscribe to either an All-Unlimited Plan or to an All-Consumable Plan. From this base fee, subscribers pick monthly add-on unlimited services such as calls, text, or mobile browsing to boost their plans. Subscribers also choose the freebies, comprising of bulk voice, bucket text and mobile surfing hours, to come with their postpaid plans. To make it even more enticing, Globe provides the latest handsets and device bundles for free or at a discount to new postpaid subscriptions. Similar to the earlier customized plans, subscribers are allowed to change these freebies and unlimited services as often as monthly.

In addition to the enhanced postpaid plans, Globe introduced another breakthrough offering, MY SUPERTXT ALL, the first-ever unlimited text service to all networks for its postpaid subscribers. Alternatively, subscribers of the ALL NEW My Super Plan may avail of MY SUPERTXT ALL as a monthly add-on service to their postpaid plans.

With mobile data usage gaining momentum, and to complement its suite of affordable data plans, Globe launched promotional deals that offered the latest smartphones and tablet devices from Samsung, Huawei and HTC at affordable prices with its Super Smartphone Deals. During the period, the Company also expanded its mobile data services for its Globe Prepaid subscribers with the launch of Super Facebook, a data subscription plan which provides 5 straight hours of mobile surfing on Facebook. Alternatively, for users who just access the internet from time to time, Globe introduced a new variant of its PowerSurf offering. PowerSurf15 provides subscribers 1 hour of mobile internet browsing valid for 1 day.

For Globe Prepaid, the Company also enhanced its bucket text offering SuperAll Txt 20 by now providing 250 all-network text messages from just 200 messages during its launch in late 2010. The service remains affordable which stays at the same price of P20 for 1 day. For the broadband business, meanwhile, Globe started the year with a revitalized campaign underpinned by the All-New Globe Tattoo: No Limits. Bannered by new brand ambassadors, Tattoo Broadband presented a new Tattoo logo and signature colors which provide an edgier and more vibrant look and feel. To kick-off the summer season, Globe launched barkada-friendly deals allowing subscribers to buy 3 prepaid Tattoo kits and get 1 Tattoo stick for free for only P3,735. This effectively reduced the price of each Tattoo stick to only P933.75, 25% lower than the regular price of P1,245 per stick. During the period, Globe also introduced SurfTxt60, the first-ever surf and text combo offer available to prepaid broadband dongle users.

To enable subscribers to enjoy better, faster, and more reliable data connections, Globe recently announced that it is embarking on the country’s first commercial rollout of 4G mobile technology. Globe is utilizing the global standard HSPA+ or Evolved High-Speed Packet Access for its 4G mobile network. HSPA+ is a 4G wireless, mobile, high speed broadband technology that provides peak theoretical download speeds of up to 21 Mbps with upgradeability for 84 Mbps. Under the Globe HSPA+ network, subscribers are expected to enjoy data browsing at an average speed of 4-6 Mbps with even faster peak speeds.



Source: PSE Disclosure

Emperador Distillers Post Record 9-month Income

Emperador Distillers, Inc.reported a net income of P1.061 billion for the first three quarters of 2010.  Emperador Distillers President Winston Co said “This goes down as the highest income that we have ever achieved for a nine-month period, and it’s already 86 percent higher than that for the whole year of 2009.”

Co expects 2010 to be a banner year in revenue and income for EDI. He added: “We are confident that our net income this year will be the highest in the history of Emperador Distillers.” 

EDI's strong performance is largely due to improved consumer confidence and spending as well as the company’s ability to innovate and control cost, said Co. The record revenue gains also reflect EDI’s strong financial management as it has zero bank debt, he said.

EDI is the country's largest brandy manufacturer, with Emperador Brandy as its flagship brand. To seize new profit and growth opportunities, the company launched its foray into the white spirit segment by introducing the first flavored vodka and gin under the brand name The BAR in 2009.

“The BAR follows the blue ocean strategy as it targets uncontested market space with exciting offerings and a high-end image appeal ... The Bar has successfully penetrated all segments of the socio-economic market from A to D.”  according to Co.

The BAR sold 50 million bottles in the first 12 months of its launch, making the brand an instant success.

“This wide market acceptance of The BAR is a first in Philippine liquor history.. The two new products are the result of a long, careful market study and research that EDI has undertaken, and they represent the latest innovations that we are bringing into the mainstream of the liquor industry,” said Co. He disclosed that EDI would launch two more new beverages within the last quarter of the year.

“I promise you that the new drinks will be very, very exciting. We expect them to create a new demand and generate additional revenue for EDI in the coming years,” he said.

Emperador Distillers, Inc. is a 100 percent owned of subsidiary of Andrew Tan-led conglomerate Alliance Global Group, Inc.

 

source: PSE Disclosure

Oct 21, 2010