Globe Telecom Inc. · PSE:GLO

Globe Telecom — Q3 2003 Earnings Presentation

16 slides from Globe Telecom's earnings presentation, Nov 11, 2003

  1. Slide 1: Globe Telecom, Inc. 3Q03 Investors' Briefing

    Globe Telecom, Inc. 3Q03 Investors’ Briefing 11 November 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

  2. Slide 2: President's Message: 3Q03 Highlights

    President’s Message 3 3Q03 Highlights ■ Record subscriber take-up ➤ 1.7m gross additions ➤ 810k net additions ■ Continued introduction of new services ■ Strong financial results ■ Corporate reorganization completed ■ DT exit concluded 4 • 2

  3. Slide 3: Record subscriber take-up; Postpaid subscriber growth stable

    Record subscriber take- take-up Cumulative Wireless Subscribers (‘ (‘000) Quarterly Gross and Net adds (‘ (‘000) 8,500 8,082 2,000 1,719 7,500 6,572 6,500 5,960 1,500 1,234 5,500 1,119 1,213 4,588 950 4,500 1,000 810 3,500 2,563 524 612 538 2,500 500 404 1,500 500 0 (500) 3Q02 4Q02 1Q03 2Q03 3Q03 20

  4. Slide 4: Record prepaid subscriber take-up; Continued Introduction of New Services

    Record subscriber take- take-up Cumulative Prepaid Subscribers (‘ (‘000) Quarterly Gross and Net adds (‘ (‘000) 8,000 7,414 2,000 1,635 7,000 6,053 1,500 6,000 5,466 5,000 1,059 1,146 1,099 4,121 1,000 871 4,000 777 3,000 2,212 488 588 515 2,000 500 311 1,000 0 - 2000 2001 2002 9M02 9M03 3Q02 4Q02 1

  5. Slide 5: Strong Financial Results

    Strong Financial Results Wireless Service Revenues and Net Income *( P m) 40,000 ƒ 9M03 wireless 33,537 service revenues 35,000 31,564 up 26% 30,000 23,604 25,062 9 Already 90% of 25,000 FY02 revenues 20,000 15,000 12,442 • Recurring net 8,392 10,000 6,845 income surged 4,305 4,401 5,000 1,549 91% -

  6. Slide 6: Corporate reorganization completed; DT Exit Concluded

    Corporate reorganization completed Reorganization of corporate structure ƒ Two focused and Globe Telecom dedicated companies ƒ Reflects business lines ƒ Corporate agility ƒ Appropriate cost structures 11 DT Exit Concluded ƒ Smooth and friendly parting of ways ƒ Increased ownership of AC and Singtel

  7. Slide 7: Looking Ahead; Operational Performance

    Looking Ahead ƒ Build a bigger critical mass of subscribers 9 Expand aggressively in areas outside Metro Manila 9 Deeper penetration into mass markets ƒ Intensify existing cost-effectiveness program ƒ Maximize benefits of wireline business integration 13 Operational Performance 14 • 7

  8. Slide 8: Key Wireless Drivers: ARPU and Churn

    Key Wireless Drivers Quarterly ARPU (P) 1,800 1,600 1,700 1,686 1,628 1,610 1,664 1,400 1,200 1,000 800 600 424 461 410 422 393 400 200 286 274 259 242 202 - 3Q02 4Q02 1Q03 2Q03 3Q03 GHP Postpaid GHP Prepaid TM • Postpaid ARPU sustains uptrend • Downward pressure on prepaid ARPUs with the introducti

  9. Slide 9: Key Wireless Drivers: SAC; Wireless Data

    Key Wireless Drivers Quarterly SAC (P) 12,000 9,802 10,000 9,335 8,761 8,000 6,000 3,718 4,000 2,503 2,000 249 456 264 307 305 79 335 109 207 219 - 3Q02 4Q02 1Q03 2Q03 3Q03 GHP Postpaid GHP Prepaid TM 17 Wireless Data Wireless Data (3Q03) Average Daily Volume SMS (m) 60 53 55 Int’l SMS Enhanced SMS

  10. Slide 10: Wireline Services; ILD Services

    Wireline Services Wireline Voice Wireline Data Revenues (P m) 9M03 9M02 As of 9M03 9M02 Subscribers 246,095 220,787 Internat’l Lease 394 333 ARPU (P) 1,173 1,189 Domestic Lease 401 321 Bus/Res Mix 23:77 24:76 Internet 217 162 Others 27 6 % Prepaid & Payphones 31% 20% Total 1,039 822 ƒ 9M03 revenues

  11. Slide 11: NLD Services; Operational Initiatives

    NLD Services Quarterly NLD Minutes (m) 150 132 119 114 116 118 120 90 60 30 0 3Q02 4Q02 1Q03 2Q03 3Q03 NLD Revenues 3Q02 4Q02 1Q03 2Q03 3Q03 (P m) 563 650 519 509 519 ■ 4% of 9M03 total service revenues 21 Operational Initiatives 22 • 11

  12. Slide 12: Consolidation of Wireline Business; Financial Performance

    Consolidation of Wireline Business Globe Innove ƒ Wireless business • Wireline voice ƒ National and international transmission • Wireline access networks ƒ Carrier relations ƒ Business centers • Corporate Data ƒ Call centers 9 Int’l & Domestic Leased ƒ Corporate support Lines services 9 Int’l & Dome

  13. Slide 13: Solid Financial Performance: Income Statement and Balance Sheet

    Solid Financial Performance: Income Statement (P m ) Sep-03 Sep-02 Service 35,173 28,530 Non-service 1,352 4,645 Net O perating Revenue 36,525 33,175 O perating Cost & Expenses (16,072) (13,548) EBITDA 20,453 19,627 Depreciation & Am ortization (8,795) (7,699) EBIT 11,658 11,928 Non-operating Expens

  14. Slide 14: Leverage Profile Continued to Improve; Capex within guidance

    Leverage Profile Continued to Improve Gross Debt / EBITDA (x) Debt / Equity (x) 4 3.55 1.60 1.44 3.5 2.98 1.40 1.15 1.10 3 1.20 1.07 1.00 2.5 2.19 2.04 2.06 1.00 2 0.80 1.5 0.60 1 0.40 0.5 0.20 0 - 2000 2001 2002 9M02 9M03 2000 2001 2002 9M02 9M03 EBITDA / Gross Interest (x) Debt / Total Capitalizat

  15. Slide 15: Financial Results Continue To Be Strong; Shareholder Developments

    Financial Results Continue To Be Strong Free Cash Flow (P m) 15,000 ƒ 9M03 FCF almost 3x 9,058 last year’ year’s 10,000 6,895 ƒ Increased service 3,179 revenues 5,000 ƒ Lower capex - 2001 2002 Sep-02 Sep-03 (5,000) (10,000) (15,000) (16,414) (20,000) 29 Shareholder Developments DT Exit Buyers AC : 1

  16. Slide 16: Shareholder Developments; Thank You

    Shareholder Developments As of Sep-03 Actual Pro-forma Gross debt to Equity (x) 1.00 1.17 Net debt to Equity (x) 0.64 0.91 EPS* (P) 65.80 71.44 Shares outstanding (m) 151.9 139.9 Post buyback : • Rating of BB Stable affirmed by S&P * Annualized; pro-forma assuming reduced number of shares from start

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