Globe Telecom declares dividend of P22 per share

Globe Telecom said its board approved the declaration of a first quarter cash dividend of P22 per share for common shares.

The dividend will be paid to shareholders on record as of February 22, 2016, with the payment date on March 4, 2016.

“The dividend payout is in line with the policy of distributing 75 percent to 90 percent of prior year’s core net income,” said Rizza Maniego-Eala, Globe acting chief finance officer, adding the quarter’s dividend payment totals about P2.9 billion. On an annualized basis, the dividends represent a payout of 77 percent of 2015 core net income.

Notwithstanding its dividend payment, Globe is also allocating a capital expenditure of up to $750 million for 2016, of which majority will be related to data, including  spend for deployment of LTE mobile and LTE @Home, increased network capacities and coverage, as well as enhancement of fixed-line data infrastructure and transmission facilities.

The company’s aggressive stance to continue investing in its network reach and capacity is geared toward enhancing its customers’ digital lifestyle.

Globe’s spending for its network infrastructure is one of the highest among Asian operators over the last two years, as it devotes up to 24 percent of annual revenues for its infrastructure build. Based on publicly available regulatory reports, Globe had a capital expenditure to revenue ratio of 28 percent in 2015, and 27 percent in 2014 for both wireless and wireline, which were higher than the Philippine-telecommunications-industry average of 23 percent in both 2015 and 2014.

Globe posted consolidated service revenues of P113.7 billion, 15 percent higher than the P99 billion reported a year ago, supported by solid growth in data consumption across all segments, as well as consolidation of the results of Bayan Telecommunications in the second half of the year.  Net income in 2015 totaled P16.5 billion, up 23 percent from P13.4 billion recorded a year earlier.

The company said sustained customer uptake in both mobile and broadband and increasing demand for mobile data and high-speed internet connectivity also provided support for Globe’s revenue growth. Even excluding Bayan’s revenues in the second half of 2015, the company’s consolidated revenues reached P110.8 billion, up 12 percent from a year earlier.