Globe Telecom Inc. · PSE:GLO

Globe Telecom — Q2 2007 Earnings Presentation

11 slides from Globe Telecom's earnings presentation, Aug 13, 2007

  1. Slide 1: 2Q07 Investors' Briefing: Strong 1st Half Posts Record Highs

    2Q07 Investors’ Briefing 13 August 2007 Strong 1st Half Posts Record Highs! (In Php Bn) 21 32 EBITDA 11% REVENUES 20 20.9 31 11% 31.6 19 30 18 29 18.0 18.9 18.3 17 28 28.6 16 28.2 28.4 27 15 15.4 26 26.7 14 25 13 12 24 1H/05 2H/05 1H/06 2H/06 1H/07 1H/05 2H/05 1H/06 2H/06 1H/07 7.5 8 NIAT 1H’07 net

  2. Slide 2: Sustained subscriber growth momentum

    Sustained subscriber growth momentum SIM Base by Brand (‘000) Net Additions (‘000) 18,126 +30% 2,467 13,894 +21% 11,227 1,491 1,765 9,282 1,113 +56% 6,216 3,997 +11% 1H '05 2H'05 1H'06 2H'06 1H'07 615 683 (1,223) Postpaid GHP Prepaid TM Total SIMs 1H06 1H07 ƒ TM continues to be catalyst of SIM growt

  3. Slide 3: Wireline revenues still growing

    Wireline revenues still growing Broadband on an upward trajectory… Cumulative Broadband Subs Total Wireline Revenues (in Php Mn) 1671 (‘000) 1632 1583 1657 1588 1637 1560 195% YoY 4Q '05 1Q '06 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 92% Broadband Revenues YoY 89.3 499.3 51.4 260.7 30.3 23.2 1H '06 1H '0

  4. Slide 4: Key Initiatives and Growth Drivers

    Key Initiatives and Growth Drivers… ƒ Sustained efforts to grow core ƒ Focus on SME segment starting to wireless business yield gains – Tariff offers continue to drive growth – YTD revenues of Php 1.2 Bn, up 14% YoY – Fortified sales and distribution – Gains achieved through partnerships, capabiliti

  5. Slide 5: This is the Globe Life! 2nd Semester Outlook

    This is the Globe Life! Our Anchor: Selected Segment Brands: ENRICHING LIVES THROUGH EASE AND RELEVANCE ƒ Unique symbols represent the “Globe Life” and the multi-layered product and service offers which surround the Customer (Hand) Selected Product/Service Brands: ƒ New brand architecture ensures co

  6. Slide 6: Financial Performance

    Financial Performance Consolidated Financial Highlights: YoY comparisons (In Php Mn) YoY 1H07 1H06 Growth Service ¾ Wireless and wireline revenues 31,621 31,621 28,447 28,447 11% Revenues grew 12% and 3% respectively EBITDA 20,942 20,942 18,944 18,944 ¾ Marketing & subsidy 11% maintained at 8% of re

  7. Slide 7: Consolidated Financial Highlights: QoQ comparisons

    Consolidated Financial Highlights: QoQ comparisons (In Php Mn) QoQ 2Q07 1Q07 Growth ¾ Wireless & wireline revenues Service 16,012 16,012 15,609 15,609 grew 3% and 2%, respectively Revenues 3% ¾ 2Q07 marketing & subsidy EBITDA 10,519 10,519 10,423 10,423 1% rose to 9% of revenues from last quarter’s

  8. Slide 8: Net additions above one million SIMs for third consecutive quarter

    Net additions above one million SIMs for third consecutive quarter … Gross & Net Additions Churn Rate (‘000) 14.03% 3,652 3,480 3,266 8.35% 8.2% 2,758 2,770 6.6% 5.5% 5.7% 6.7% 4.5% 4.3% 1,192 1,263 1,204 5.1% 2.6% 697 574 1.80% 2.7% 1.8% 1.2% 2Q '06 3Q '06 4Q '06 1Q '07 2Q '07 1Q'05 4Q'05 3Q '06 2Q

  9. Slide 9: Operating Expenses: YoY Comparison

    Operating Expenses: YoY Comparison (In Php Mn) 1H07 1H06 YoY Due to increased advertising and Subsidy & Marketing 2,508 2,367 6% subscriber loyalty programs Staff Costs 2,014 1,681 20% Due to higher base pay and pension Utilities, Supplies costs, as well as 7% increase in total and Other Admin 1,068

  10. Slide 10: Strong financial position

    Strong financial position In Php Mn 2Q 07 2Q 06 Cash Balance 9,534 13,860 31% Debt 33,179 45,375 27% Gross Debt to Equity 0.56 0.83 11,639 12,668 8% YTD Free Cash Flow YTD Capex 5,839 5,164 13% Capex as % of sales 18% 18% Enhanced shareholder value growth Market Capitalization Annual Cash Dividends

  11. Slide 11: Q&A

    Q&A 11

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