Globe Telecom Inc. · PSE:GLO
Globe Telecom — Q3 2007 Earnings Presentation
9 slides from Globe Telecom's earnings presentation, Nov 7, 2007
Slide 1: 3Q07 Investors' Briefing
3Q07 Investors’ Investors’ Briefing 07 November 2007 Sustained value creation through strong results REVENUES EBITDA +11% +8% 47.2 42.5 40.3 28.2 30.5 23.9 9M 05 9M 06 9M 07 9M 05 9M 06 9M 07 9M05 9M06 9M07 9M05 9M06 9M07 NIAT CORE NIAT +4% +20% 10.5 9.3 9.7 8.8 6.4 6.0 9M05 9M06 9M07 9M05 9M06 9M07
Slide 2: Sustained growth for our wireless business
Sustained growth for our wireless business Wireless Revenues Wireless EBITDA (In Php Bn) Bn) + 12% (In Php Bn) Bn) 42.1 + 10% 37.7 35.5 26.1 28.7 21.7 9m05 9m05 㪰㪫㪛㪇㪌 9M06 9M06 㪰㪫㪛㪇㪍 9M07 9M07 㪰㪫㪛㪇㪎 㪰㪫㪛㪇㪌 9M05 㪰㪫㪛㪇㪍 9M06 㪰㪫㪛㪇㪎 9M07 ! Growth in revenues YoY remains strong at 12%, double last year’ ye
Slide 3: Good momentum across all brands
Good momentum across all brands SIM Base by Brand (Mn ( Mn) Mn) Net Additions by Brand +33% Globe 19.2 Postpaid 2% +22% 14.5 11.7 9.6 +60% 6.8 TM 54% 4.3 Globe +10% 44% Prepaid 0.6 0.7 Postpaid Postpaid Prepaid GHP Prepaid TM TM TOTAL SIMs Total SIMs 9M06 9M07 ! Globe Postpaid breaks through the 700
Slide 4: Giving back to the community; enhancing shareholder returns with special dividend
Giving back to the community… community… Globe Bridging Communities ! Text2Teach program enabled teachers in 210 public elementary schools to gain access to more information via SMS, while GILAS connected 710 public high schools to the internet ! Entrepreneurship programs participated in by 3,500 mi
Slide 5: Financial Performance
Financial Performance Consolidated Financial Highlights: YoY comparisons (In Php Mn) Mn) YoY 9M07 9M06 Growth " Wireless and wireline revenues Service grew 12% and 6% respectively, 47,153 47,153 42,517 42,517 11% Revenues leading to higher EBITDA 30,451 28,192 " EBITDA margin fell slightly to 65% EB
Slide 6: Consolidated Financial Highlights: QoQ Comparisons
Consolidated Financial Highlights: QoQ Comparisons (In Php Mn) Mn) 3Q07 3Q06 Growth 2Q07 QoQ Growth Service 15,532 14,070 16,012 15,532 14,070 10% 16,012 Revenues - 3% EBITDA 9,509 9,509 9,248 9,248 3% 10,519 10,519 - 10% EBIT 5,160 5,160 5,154 5,154 - 6,250 6,250 - 17% Non- Non- Operating 314 314 2
Slide 7: Operating Expenses: YoY Comparison
Operating Expenses: YoY Comparison (In Php Mn) 9M07 9M06 YoY Increased loyalty programs and advertising efforts for wireless Subsidy & Marketing 3,926 3,642 8% and broadband businesses Staff Costs 3,156 2,578 22% Higher headcount of 7% coupled with increases in base pay and Utilities, Supplies 1,762
Slide 8: Strong financial position
Strong financial position In Php Mn 3Q 07 3Q 06 Cash Balance 11,653 13,686 15% Debt 31,929 41,336 23% Gross Debt to Equity 0.55 0.76 16,200 19,365 16% YTD Free Cash Flow YTD Capex 9,115 8,658 5% Capex as % of sales 19% 20% Superior shareholder returns, with high dividend yield and strong share price
Slide 9: Thank You
Thank You 9