Globe Telecom Inc. · PSE:GLO
Globe Telecom — H1 2003 Earnings Presentation
17 slides from Globe Telecom's earnings presentation, Jul 31, 2003
Slide 1: Globe Telecom, Inc. 1H03 Investors' Briefing
• • Globe Telecom, Inc. 1H03 Investors’ Briefing 31 July 2003 1 Disclaimer This presentation contains certain “forward-looking statements.” These forward-looking statements generally can be identified by use of statements that include words or phrases such as Globe or its management “believes,” “exp
Slide 2: President's Message
• • President’s Message 3 Summary ■ Wireless market sustains growth ■ Globe Highlights ➤ Strengthens lead in postpaid ➤ New prepaid subscriber generation remains robust ➤ New services launched ➤ Financial results continue to be strong ■ Key Challenges / Opportunities 4 • • 2
Slide 3: Wireless Market Sustains Growth
• • Wireless Market Sustains Growth Total Wireless Market 20,000 25.0% 22.0% 18,000 ■ Strong subscriber 20.6% 19.0% momentum likely to 16,000 20.0% continue 14,000 14.0% 12,000 15.0% ■ Net additions in 1H03 10,000 higher than same 8,000 8.3% 16,479 17,636 10.0% period last year 15,171 6,000 10,957 ■
Slide 4: New prepaid subscriber generation remains robust
• • New prepaid subscriber generation remains robust Prepaid Subscribers (‘ (‘000) 4,000 S 2.2m prepaid gross 3,500 3,389 additions in 1H03 were more than double last 3,000 year 2,500 2,244 1,932 2,000 1,500 1,000 826 500 - 2000 2001 2002 1H02 1H03 Gross Additions Net Additions 7 New prepaid subscri
Slide 5: New subscriber generation remains robust; New Services Launched
• • New subscriber generation remains robust Total Wireless Subscribers (‘ (‘000) YTD Gross and Net Additions (‘ (‘000) 8,000 1,000 2,800 7,272 2,447 7,110 7,000 6,572 1,024 5,960 961 853 950 6,000 5,436 2,100 672 5,000 440 900 1,521 4,000 1,400 5,607 5,612 3,000 4,794 5,200 850 942 4,537 2,000 700
Slide 6: Financial Results Continue To Be Strong
• • Financial Results Continue To Be Strong Wireless Service Revenues and Net Income (P m) 40,000 Revenues and net 35,000 33,537 income on a good growth trajectory 30,000 25,000 23,604 20,622 Operating expenses 20,000 16,347 down 8% y-o-y 15,000 12,442 10,000 6,845 4,305 5,264 5,000 3,115 1,549
Slide 7: Financial Results Continue To Be Strong: Free Cash Flow
• • Financial Results Continue To Be Strong Free Cash Flow (P m) 10,000 1H03 FCF more than 5x 6,895 last year’ year’s level 4,808 5,000 892 Ê Higher service revenues - 2001 2002 Jun-02 Jun-03 (5,000) Ê Continued improvement in operational efficiencies (10,000) (15,000) (16,414) (20,000) 13 Key Cha
Slide 8: Key Challenges / Opportunities
• • Key Challenges / Opportunities ■ Increased competition Key Challenges ■ Cost-effective operations ■ Fast-paced technology ■ Continued fast subscriber take-up Opportunities ■ New products and services ■ Increased MMS Usage 15 Key Challenges / Opportunities ■ Increased competition Key Challenges ■
Slide 9: Operational and Financial Results: ARPU
• • Operational and Financial Results 17 Key Wireless Drivers Quarterly ARPU (P) 2 ,0 0 0 1 ,7 3 8 1 ,7 0 0 1 ,8 0 0 1 ,6 2 8 1 ,6 1 0 1 ,6 6 4 1 ,6 0 0 1 ,4 0 0 1 ,2 0 0 1 ,0 0 0 800 600 439 424 461 410 422 400 200 317 286 274 259 242 - 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 G HP P o s tp a id G HP P re p a
Slide 10: Key Wireless Drivers
• • Key Wireless Drivers Quarterly Churn (‘ (‘000) 900 800 700 600 500 400 300 200 100 G H P P r ep aid G H P P r ep aid G H P P r ep aid G H P P r ep aid G H P P r ep aid G P H P o st p aid G P H P o st p aid G P H P o st p aid G P H P o st p aid G P H P o st p aid - TM TM TM TM TM 2Q 02 3Q 02 4Q 0
Slide 11: Wireless Data; Wireline Services
• • Wireless Data Wireless Data (1H03) Average Daily Volume SMS (m) Enhanced 60 International SMS 53 SMS 4% 50 50 47 12% 39 40 30 20 20 10 Regular SMS 84% - 2000 2001 2002 1Q03 2Q03 • 1H03 wireless data revenues of P7.1bn accounted for 35% of wireless service revenues 21 Wireline Services Wireline V
Slide 12: ILD Services; NLD Services
• • ILD Services Quarterly ILD Minutes (m) 500 447 439 450 412 400 375 371 350 300 250 200 150 100 50 0 2Q 02 3Q 02 4Q 02 1Q 03 2Q 03 ILD Revenues 2Q02 3Q02 4Q02 1Q03 2Q03 (P m) 2,497 2,779 3,124 3,125 3,220 ■ 29% of total service revenues in 2Q03 23 NLD Services Quarterly NLD Minutes (m) 160 138 14
Slide 13: Solid Financial Performance: Income Statement
• • Solid Financial Performance: Income Statement (P m ) 1H 03 1H 02 S ervice 22,978 18,545 N o n -s e rv ic e 989 3 ,8 2 7 N et O p erating R ev enue 23,967 22,372 O p eratin g C o st & E xp en ses (10,310) (11,150) E B IT D A 13,657 11,222 D e p re c ia tio n & A m o rtiz a tio n (5 ,6 4 3 ) (4 ,7
Slide 14: Solid Financial Performance: Balance Sheet
• • Solid Financial Performance: Income Statement (P m ) 1H 03 1H 02 S ervice 22,978 18,545 N o n -s e rv ic e 989 3 ,8 2 7 N et O p erating R ev enue 23,967 22,372 O p eratin g C o st & E xp en ses (10,310) (11,150) E B IT D A 13,657 11,222 D e p re c ia tio n & A m o rtiz a tio n (5 ,6 4 3 ) (4 ,7
Slide 15: Balance Sheet; Leverage Profile Continued to Improve
• • Solid Financial Performance: Balance Sheet (P m ) 1H03 1H02 C urre n t A s s e ts 4 2,83 0 3 8,93 4 P ro pe rty an d e q uip m e n t - ne t 9 9,57 5 9 4,58 2 O the r A s s e ts 2 ,6 44 1 ,9 97 Total Assets 145,050 135,513 C urre n t L iab ilitie s S h ort-te rm de b t 7 ,4 38 7 ,9 33 O the r c u
Slide 16: Capex within guidance; Shareholder Developments
• • Capex within guidance Capex over Service Revenues ■ P8.8bn Capex as of Jun-03 Jun-03 38% ➤ 86% on wireless 2002 48% ➤ 45% of 2003 budget 2001 100% 2000 114% 0% 50% 100% 150% 31 Shareholder Developments ■ DT has publicly stated it is looking to exit from Globe; Ayala and SingTel are evaluating DT
Slide 17: Thank You
• • THANK YOU 33 • • 17