Slide 1: SEC Form 17-C cover sheet
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Slide 2: SEC Form 17-C Current Report
SECURITIES AND EXCHAPUjt ^uiviiviiooiwn SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17(a)-1(b)(3) THEREUNDER Date of Report (Date of earliest event reported) 1177 3. ...p00fT.68:480-0q0 SEC identification Number BIR Tax Identification Number i-
Slide 3: Globe Telecom, Inc. Financial and Operating Results First Half 2014
Globe Telecom, Inc. FINANCIAL AND OPERATING RESULTS First Half 2014 6 August 2014
Slide 4: First Half 2014 Performance Highlights
First Half 2014 Performance Highlights +6% +7% 47,695 Service Revenues 24,465 • Service Revenues up 7% YoY as growth 23,163 23,230 44,532 momentum continues across all product categories +5% 1H13 1H14 • 2Q14 revenues hit a new quarterly record 2Q13 1Q14 2Q14 In Php Millions In Php Millions +1% EBITD
Slide 5: Mobile Revenues grew 5% YoY on broad-based, subscriber-driven growth
Mobile Revenues grew 5% YoY on the back of broad-based, subscriber-driven growth YTD Mobile Revenues Mobile Subscribers In Php Billions In Millions 35.8 37.8 +18% 42.7 40.8 2.1 38.4 2.1 13.1 14.6 Postpaid Postpaid 36.5 2.0 +5% Prepaid 36.1 Prepaid +5% 1.9 2.0 40.6 38.7 36.4 34.2 34.5 22.7 23.2 1H13
Slide 6: Core services remain resilient with voice revenues up 9% YoY
Core services remain resilient with voice revenues up 9% YoY and SMS revenues keeping steady, despite continued shift to unlimited promos Mobile Voice Revenues Mobile SMS Revenues In Php Billions In Php Billions +9% 15.9 17.3 14.3 14.2 +3% 8.7 8.7 7.2 7.0 1H13 1H14 1Q14 2Q14 1H13 1H14 1Q14 2Q14
Slide 7: Data revenues remain a key growth driver for Globe
Data revenues, across different technologies, remains a key growth driver for Globe Mobile Browsing and Mobile FB Registered Users Other Data Revenues In Millions In Php Billions The +65% 8.9 +23% Free Facebook promo provided a step increase in 5.4 3.4 mobile data users . . . 2.8 Pre FB Post FB Mobi
Slide 8: Strong growth in data revenues extends to broadband and fixed line
Strong growth in data revenues extends to broadband and fixed line data segments Broadband Revenues Broadband Cumulative Fixed Line In Php Billions Subscribers Data Revenues In Thousands In Php Billions +24% +15% 2,190 2,248 +14% 2,032 3.1 1,814 1,881 Wireless +3% 1.3 Wired 1.3 1,654 1,798 1,836 2.8
Slide 9: Creating a differentiated customer experience with new products and services
Creating a differentiated customer experience with new products and services New Promo Bundles New TM Facebook Offer Globe partners with Xiaomi for Mi 3 handset GoUnli20 GoTXT19Plus New Tattoo Service and GCash expands nationwide Globe corporate M2M Device Offers reach with CashKO solutions
Slide 10: Financial Performance
Globe Telecom, Inc. FINANCIAL PERFORMANCE First Half 2014
Slide 11: Consolidated Financial Highlights
Consolidated Financial Highlights Y/Y Q/Q 6M14 6M13 Change 2Q14 1Q14 Change In Php Mn Service Revenues 47,695 44,532 7% 24,465 23,230 5% OPEX & Subsidy* (28,618) (25,592) 12% (14,184) (14,434) (2%) EBITDA 19,077 18,940 1% 10,281 8,796 17% EBITDA Margin 40% 43% (3%) 42% 38% 4% Depreciation 8,510 16,0
Slide 12: YoY, EBITDA improved by 1%, driven by revenue growth and lower interconnect charges
YoY, EBITDA improved by 1%, driven by revenue growth and lower interconnect charges, offsetting increases in operating costs YoY Change in EBITDA (in Php Mn) 3,163 446 408 +1% 1,168 501 1,395 18,940 19,077 6M13 EBITDA Inc. in Revenues Dec. in Inc. in Staff Costs Inc. in Marketing Inc. in Network Inc
Slide 13: Capital expenditures at approximately Php11 Billion, in line with guidance
Capital expenditures at approximately Php11 Billion, in line with Php29 Billion CAPEX guidance for 2014 CAPEX In Php Millions 6M14 CAPEX Breakdown Others 16% 29,000 Core Capex Guidance for 2014 16% Business Support Systems 14% 28,999 Data-driven CAPEX 54% 18,007 20,124 11,003 2011 2012 2013 6M14
Slide 14: Gross debt at Php68.8 billion, within covenant ratios
Gross debt at Php68.8 billion, though comfortably within covenant ratios Gross Debt Gross Debt/EBITDA Ratio in Php Millions 1.90 1.88 1.78 69,301 68,817 1.39 61,779 48,679 2011 2012 2013 6M14 2011 2012 2013 6M14 Covenant = 3:1 Gross D/E Ratio Return on Equity* 32.1% 1.66 26.3% 1.58 21.6% 1.33 21.0%
Slide 15: Cash Dividends: Sustained commitment to delivering value to shareholders
Cash Dividends: Sustained commitment to delivering value to our shareholders Globe 2014 Dividend Yield* Key Information Cash Dividend per Php 18.75 Common Share: 4.3%* 4% 3% Record Date: August 19, 2014 2% Payment Date: September 4, 2014 GLO PSE Index 5YR PDST 7YR PDST 2014 YTD Total Shareholder Ret
Slide 16: Q&A
Q&A
Slide 17: Appendix
Appendix
Slide 18: Appendix 1: Historical Consolidated Gross / Net Service Revenues and EBITDA Margin
Appendix 1: Historical Consolidated Gross / Net Service Revenues and EBITDA Margin 2013 2014 (In Million Pesos) 1Q 2Q 3Q 4Q 1Q 2Q CONSOLIDATED SERVICE REVENUES Mobile 17,124 18,717 18,232 18,691 18,456 19,342 Voice 7,670 8,268 8,052 8,377 8,658 8,684 SMS 6,961 7,349 7,097 7,387 7,008 7,233 Data 2,49
Slide 19: Appendix 2: Net Income and Core Net Income
Appendix 2: Net Income and Core Net Income % % (in Million Pesos) 6M14 6M13 Change 2Q14 1Q14 Change Reported Net Income After Tax 6,835 1,410 385% 3,886 2,949 32% Deferred Tax on Unexercised Stock Options 55 (188) (129%) 13 41 (68%) Add (deduct) forex loss (gain) (430) (1,914) (78%) (285) (145) 96%
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