Globe Telecom Inc. · PSE:GLO
Globe Telecom — Regional Mobile Day (October 2002)
25 slides from Globe Telecom's conference presentation, Oct 11, 2002
Slide 1: Regional Mobile Day
Regional Mobile Day Gil B. Genio Senior Vice President 11 October 2002
Slide 2: Disclaimer
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,” “expects,” “anticipates,” “intends,” “plans,” “foresees,” or other w
Slide 3: Overview
Overview ¾ Introduction ¾ Strategy & Performance ¾ Outlook ¾ Key Challenges 3
Slide 4: Introduction
Introduction 4
Slide 5: History and Background
History and Background ¾ Full service telecommunications provider o Leading wireless operator in the Philippines o Other services include wireline (voice and data) and carrier services ¾ Established in 1993 resulting from the partnership between Ayala Corporation and Singapore Telecom o 2001: Globe
Slide 6: Globe: The Leading Wireless Operator
Globe: The Leading Wireless Operator Globe’s Businesses Globe at A Glance Wireline Data Wireline Q 3 Businesses of Globe: Carrier Voice 2% Business 7% ³ Wireless (Voice & Data) 9% ³ Wireline (Voice & Data) ³ Carrier (IGF and IXC services) Wireless Q Wireless will continue to be 81 % engine of growth
Slide 7: Strategy and Performance
Strategy and Performance 7
Slide 8: Strategy for Growth
Strategy for Growth “To make the mobile device an indispensable part of daily life” Competitive Strategy: “Best Customer Experience” Four pillars of growth - anchors for differentiation Best Offered Best Network Best Customer Best Benefits in Quality Services Price-Value VAS Calibrating Growth with
Slide 9: Market Share as of June 2002
Market Share as of June 2002 Postpaid Subscribers Prepaid Subscribers Others 16% Globe 42% Globe 84% Others 58% Source: Industry Disclosures Source: Industry Disclosures Total Subscribers Total Wireless Revenues Globe Others 44% 46% Others Globe 56% 54% Source: Industry Disclosures Source: Company E
Slide 10: Captured Majority of Wireless Industry Net Adds
Captured Majority of Wireless Industry Net Adds Globe and Touch Mobile Market Share of Net Adds Net Adds (In 000) 600 1Q02 2Q02 446 500 417 400 300 GLOBE* OTHERS OTHERS GLOBE* 200 38% 38% 100 62% 62% 0 1Q02 2Q02 SOURCE: Industry disclosures ¾ Globe led the market in 2Q02 in terms of incremental net
Slide 11: WIRELESS: Data - Major Source of Growth
WIRELESS: Data - Major Source of Growth Wireless Data Revenue Breakdown Premium* 8% International 10% 82% Regular P5,643 million (US$112 M) *News & Info, Fun & Games, Entertainment, Communities, Shopping, Money, My-Services, M-Ads 11
Slide 12: Wireline Data
Wireline Data Wireline Data 1H2002 1H2001 Wireline Data Revenues (in Php M) 545 475 International Lease 227 155 Domestic Lease 212 178 Internet and Others 106 142 ¾ 1H2002 revenues of P545 million is 15% higher than P475 million posted in 1H2001 ¾ Integrated internet and data services solutions unde
Slide 13: Progress on Wireline-Voice continues
Progress on Wireline-Voice continues Major Milestones Starting 2Q2002 Globe EBIT Positive P19 million Wireline-Voice Islacom EBITDA Positive P46 million Wireline-Voice 13
Slide 14: Growth Under A Sound Financial Framework
Growth Under A Sound Financial Framework Maintain Ready Access to Global Capital Markets Prudent and Proactive Financial Management Emphasis on Capital Return Driven Active Risk Profitability vs. Structure Capex Management Market Share Improved Q Stable Q Capex peak Q Debt Q Hedge EBITDA in 2002 red
Slide 15: Financial Highlights
Financial Highlights * Income Statement 1st Half 2002 1st Half 2001 PHP Millions PHP Millions Net Operating Revenues 22,372 15,447 EBITDA 11,222 6,728 EBITDA Margin** 56 % 51 % EBIT 6,424 4,561 Net Income 3,078 2,553 Balance Sheet As of 30 June 2002 As of 30 June 2001 PHP Millions PHP Millions Total
Slide 16: Profitability on a Continuous Upward Slope
Profitability on a Continuous Upward Slope Quarterly Revenues (in Php M) Quarterly EBITDA (in Php M) 14,000 19 consecutive quarters of growth 7,000 17 consecutive quarters of growth 15% compounded quarterly growth rate 20% compounded quarterly growth rate 12,000 6,000 10,000 5,000 8,000 4,000 6,000
Slide 17: Key Initiatives
Key Initiatives 17
Slide 18: The Wireless Network Integration Project
The Wireless Network Integration Project Globe Handyphone + Integrated Touch Mobile Globe-Islacom Wireless Strengthen Islacom Legacy Network Globe’s core (Old Islacom brand) wireless business Q Islacom wireless subscribers will enjoy superior coverage and service offerings available through the Glob
Slide 19: Outlook
Outlook 19
Slide 20: WIRELESS: Strong Wireless Market Potential Continues
WIRELESS:Strong Wireless Market Potential Continues Total Wireless Market (‘000) Globe continues to capitalize on the expanding wireless 13,000 12,638 market. 12,500 First half growth in 11,975 total wireless market 12,000 continues to be robust. 11,500 Penetration is seen to 10,957 easily rea
Slide 21: The Regional Mobile Alliance
The Regional Mobile Alliance ¾ Cooperation in the following areas: ¾ Human Resources ¾ Benchmarking and Knowledge Management ¾ Sales and Marketing ¾ Product Development ¾ Network Engineering ¾ Alliance Objectives include: ¾ Sharing of information/best practices and transfer of knowledge and skills ¾
Slide 22: Key Challenges
Key Challenges 22
Slide 23: Key Challenges
Key Challenges ¾ Challenging economic and competitive environment ¾ Continue focus on profitability o Maintain prudent financial management strategies ¾ Constantly offer relevant wireless data services o MMS service 23
Slide 24: Thank You
Thank You
Slide 25: Globe Telecom
Globe Telecom Visit us at: http://www.globe.com.ph 25