Globe Telecom Inc. · PSE:GLO
Globe Telecom — 2Q/1H 2019 Earnings Presentation
16 slides from Globe Telecom's earnings presentation, Aug 5, 2019
Slide 1: Cover Sheet
COVER SHEET [p[ wo fo fo ofa {1 {7 7 | QSOs 00 CCC CeSOCCeseee ee (Company's Full Name) 2t7]ile] [rjaye | L} of B| ef [Tt] ofwelrR 3/2|N/D s [rt |r fe fe |r C/O jR JN JE JR 7 |T |H A| VJ E] N] USE B}o} Nii felalc{i fo] fee jofep fe efilt|y] [rfafefuls fe (Business Address: No. Street City / Town / P
Slide 2: SEC Form 17-C Current Report
SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17(a)-1(b)(3) THEREUNDER R Tax Identification Number 4. 5. ; : ry or other jurisdiction of Industry Classi incorporation 7. 27/F, The Globe Tower, 32nd Street corner
Slide 3: 2Q/1H 2019 Analysts' Briefing
2Q/1H 2019 Analysts’ Briefing 5 August 2019 | The Globe Tower
Slide 4: 1H19 Performance
1H19 PERFORMANCE 1H19 VS 1H18 2Q19 VS 2Q18 72.9 36.9 SERVICE REVENUES Php +13% Php +12% Bn YoY Data-driven revenue growth Bn YoY 38.6 18.7 EBITDA Php +18% EBITDA margins of 53% (1H19) Php +11% Bn YoY and51% (2Q19) Bn YoY 12.0 5.3 NET INCOME Php +21% Php +0.4% NIAT up 21% on EBITDA gains Bn YoY Bn Yo
Slide 5: Mobile Revenues: Further Shift Towards Data-Related Services
FURTHER SHIFT TOWARDS DATA-RELATED SERVICES +11% MOBILE +16% FIXED LINE AND HOME BROADBAND YoY REVENUES YoY REVENUES +45% -17% -24% +21% +15% -8% MOBILE MOBILE MOBILE HOME CORPORATE FIXED LINE DATA VOICE SMS BROADBAND DATA VOICE MOBILE SUBSCRIBERS HOME BROADBAND SUBSCRIBERS In Millions In Millions +
Slide 6: Data Now Accounts for 70% of Total Revenues
DATA NOW ACCOUNTS FOR 70% OF TOTAL REVENUES MOBILE 47% MOBILE DATA MONTHLY ATPU DATA +81% In GB SERVICE HOME 14% BROADBAND 3.5 3.8 REVENUES 2.1 +7% CORPORATE 9% DATA 2Q18 1Q19 2Q19 MOBILE DATA TRAFFIC MOBILE DATA USERS In Millions +6% In PB +89% 37.1 37.5 35.4 370 394 209 1% +6% 2Q18 1Q19 2Q19 2Q18
Slide 7: New Products, Services, and Promotions
NEW PRODUCTS, SERVICES, AND PROMOTIONS Free Promo Codes for Globe at Home Air Fiber 5G GCash expands Puregold subscription to GoSakto90 Unveiled partnership with Scan to Pay via Barcode Free Promo Codes for 0917 Lifestyle, Saga Events You can now pay with GCash subscription to HomeSurf Bring Back St
Slide 8: Globe Shows Support for the Government's Common Tower Initiative
GLOBE SHOWS SUPPORT FOR THE GOVERNMENT’S COMMON TOWER INITIATIVE Globe signs MOU with ISOC, edotco to Globe, Aboitiz-Frontier Towers ink Fast Track ICT Infra Build in PH common tower deal
Slide 9: Globe's New Corporate Incubator
GLOBE’S NEW CORPORATE INCUBATOR New engine for Globe’s future growth… Create and scale digital companies Solve problems for customers and businesses beyond telco Leverage core telco assets to the fullest
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 11: 1H19 Performance: EBITDA Up 18% YoY, Net Income Up 21% YoY
1H19 PERFORMANCE: EBITDA UP 18% YoY, NET INCOME UP 21% YoY 1H18 1H19 3 YoY% 2Q19 1Q19 QoQ% (Restated) Gross Service Revenues 72,879 64,746 13% 36,876 36,003 2% 1 OPEX and Subsidy (34,297) (31,927) 7% (18,213) (16,084) 13% EBITDA 38,582 32,819 18% 18,662 19,919 -6% EBITDA Margin 53% 51% 51% 55% Depre
Slide 12: EBITDA Growth Driven by Higher Revenue and Lower Interconnect Costs
EBITDA GROWTH DRIVEN BY HIGHER REVENUE AND LOWER INTERCONNECT COSTS 8,133 1,760 1,413 931 294 1,492 YoY +18% 38,582 (in Php Mn) 32,819 6M18 EBITDA Inc. in Dec. in Inc. in Staff Inc. in Inc. in Network Inc. in 6M19 EBITDA Revenues Interconnect Costs Marketing & Costs Provisions, Charges Subsidy Servi
Slide 13: Net Income Greatly Benefitted from EBITDA Upside
NET INCOME GREATLY BENEFITTED FROM EBITDA UPSIDE 5,763 1,880 859 952 YoY (in Php Mn) 9,975 +21% 12,047 6M18 Reported Change in EBITDA Inc. in Depreciation Inc. in Non- Inc. in Tax 6M19 Reported Net Net Income operating expenses Income 1,256 461 141 445 QoQ 6,730 (in Php Mn) -21% 5,317 1Q19 Net Incom
Slide 14: 1H19 Capex Spend at Php 19 Billion with 75% Related to Data
1H19 CAPEX SPEND AT PHP 19 BILLION WITH 75% RELATED TO DATA REQUIREMENTS Others, Core, 1% CAPEX BREAKDOWN 9% In Php Bn Business 42.5 43.3 Support, 15% 9% 9% 36.7 2% 1% 7% 13% 32.1 10% Data, 82% 75% 8% 14% 77% 30% 11% 65% 19.0 15% 48% 2015 2016 2017 2018 1H19 Data Business Support Core Others 12
Slide 15: Gearing: Debt Level Within Covenant Ratios
GEARING: DEBT LEVEL WITHIN COVENANT RATIOS 3Q19 CASH DIVIDEND RECORD DATE: Php/share August 19, 2019 22.75 PAYMENT DATE: August 30, 2019 13
Slide 16: Globe
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