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

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.

SM Bags Best in Corporate Governance Award

19 January 2009. Pasay City, Philippines.

SM Investments Corporation (SM) announced today that it garnered awards from two international publications.

SM was voted as one of the Philippines’ Best in Corporate Governance for 2008, based on a survey by The Asset Magazine. The other awardees were Manila Water, Ayala Corp, Globe Telecoms, and Bank of the Philippine Islands.

SM was also awarded the 2008 Best Philippine Capital Markets Deal Award by the International Financing Review (IFR) Asia for its US$350 million bonds that were issued in July 2008.

The bonds, which mature in five years with a three-year put option, were priced at a fixed rate of 6.75 percent, one of the lowest yields in the market.

It was also the first major international corporate bond offering from the Philippines in over two years, and the country’s largest private bond issue. The issue was successfully launched in spite of a turbulent market environment. UBS served as the sole book runner of the issue.

SM is one of the largest holding companies in the Philippines. It is a dominant player in retail, mall operations, and banking. It is also an emerging player in property development, which includes residential, commercial, tourism,
and hotel projects.