Globe Nets P9.8B In 2011

With its mobile business exceeding market expectations in 2011, Globe Telecom, Inc. hauled in P67.8 billion in service revenues, 9% higher than the normalized level of P62.0 billion in the previous year although its net income inched up 1 percent only to P9.8 billion. The high service revenues offset its rising operating expenses and depreciation. Hence, Globe’s core net income rose 11 percent from P9.1 billion to P10 billion. However, the telco’s reported net income only inched up 1 percent to P9.8 billion as prior year's results included P526 million in non-recurring adjustments pertaining to prepaid load credits that have either expired or have been used up. Globe’s full-year mobile revenues reached P54 billion, up 8% year-on-year on the strength of its subscriber growth due to its customizable post-paid plans, unlimited services and all-network offers plus additional revenues from mobile browsing. Specifically, its post-paid mobile phone subscribers grew from 1.1 million to 1.5 million during the comparative period. Globe’s pre-paid services closed 2011 with total subscribers of 15.5 million, up 12 percent while Touch Mobile (TM) hauled in 13.1 million subscribers, registering a 13 percent increase. The brand refresh campaign focusing on the aspirations of the Filipino youth together with innovative local and international services renewed interest for the telco’s pre-paid offerings. On the other hand, the telco’s broadband revenues rose to P7.5 billion, up 30% from previous year, riding on the rising demand for fast and reliable internet connectivity. As Globe continued the roll-out of its 4G HSPA+ network and boosted the speed performance of its key broadband products, subscribers increased by 31 percent from 1.1 million to 1.4 million in the comparative period. Globe’s operating expenses for 2011 included certain professional, advisory, and legal fees associated with the Company's IT and network transformation programs. Results also covered P350 million in accelerated depreciation expenses related to a pilot implementation of the network change-out in Davao City, a key market and focus area. Excluding these transformation-related expenses, Globe’s consolidated EBITDA would have expanded 7 percent compared to the reported 6% growth. Core net income would have grown 15% as against the reported 11 percent growth. Overall, the gains which the telco made last year will enable Globe to sustain the growth of its business in 2012, stressed President and CEO Ernest L. Cu. “The next two years will be a critical period for Globe as we execute on our network modernization programs to make customer experience our key differentiator,” Cu said. To finance its capital expenditures for 2012, including its network modernization and IT transformation program, the company is undertaking a P15-billion Retail Bond Program This will enable the Telco to tap the retail market in one or more tranches over the next 12 months. The bonds will be offered to both institutional and retail investors. Meanwhile, in line with Globe's amended dividend policy of distributing between 71 to 90% of prior year's core net income, its Board of Directors declared the first semi-annual cash dividend of P32.50 per common share, payable on March 16, 2012 to shareholders on record as of February 24, 2012.

Globe's Enhances Payment Centers Services

Inspired by some of the biggest carriers and retailers worldwide, Globe Telecom Inc. converted half of its payment centers nationwide to full-service concept stores to lure in more customers. It was the first telecommunications firm to transform its stores from utilitarian payment and transaction centers to a one-stop shops showcasing the latest gadgets and consumer mobile technologies. “We will continue to expand our Concept Store to more areas in strategic locations in the country to address the special needs and concerns of customers,” explained Ramon Matriano, Globe’s consumer sales head. Globe’s Concept Stores offer customer and after-sales support with the shopping experience. The blueprint Globe pioneered set the model for a retail concept followed by other telcos in the country. Last year, Globe opened retail concept stores in Metro Manila at Trinoma, Gateway Mall, SM City Taytay, Eastwood Mall, Robinsons Galleria, SM City Novaliches, SM City Marikina, SM City Masigan, Araneta Square, Sta. Lucia East Grand Mall, Shangri-La Plaza, Market Market, SM Megamall, SM Mall of Asia, Robinsons Place Manila, SM City Manila, SM City Sucat and Festival Supermall. Elsewhere in Luzon, the telco established concept stores at SM City Calamba, SM City San Pablo, SM City Lipa, SM City Bacoor, SM CIty Batangas, SM City Dasmariñas, Tanauan, Solenad Nuvali, SM City Legaspi, SM City Naga, SM City Lucena, SM City Baguio, SM City Tuguegarao, Santiago City (Isabela), SM City Marilao, SM City Pampanga, SM City Clark, Waltermart Plaridel, Waltermart Sta. Maria, Balanga, Graceland Malolos and San Jose, Nueva Ecija. In Visayas and Mindanao, Globe installed concept stores at the SM CIty Bacolod, SM City Delgado, SM City Iloilo, Elizabeth Mall, Toledo (Cebu), Dumaguete City, Iligan Gaisano Mall, Davao Gaisano Mall, SM City Davao, Robinsons Cagayan De Oro and Abreeza Mall (Davao). Globe also added new features to the Concept Store such as a dedicated hotline for on-the-go customers who don’t have the time to queue at the stores for their after-sales concerns. The Globe Concept Store features a contemporary design layout, featuring a wide array of working mobile phones and gadgets that customers can actually try and test. There are also laptops with Wi-Fi and broadband connections for customers to do in-store surfing. Select Stores now have "Tech Coaches or device experts selected from a pool of shop specialists, that can help customers on their smartphones and setup their apps, among others. Last December, during the nationwide iPhone 4S launch, Globe introduced special customer sessions or one-on-one tutorials for iPhone 4S availers to help educate them on the phone’s newest features and downloadable apps.

Mobile Internet free on Mondays with Smart 'Always On'

Do you want to update your Facebook status 1,500 times in a day? Can you possibly tweet 150,000 times within 24 hours? How about reading 1,500 e-mails in a day? The numbers may seem huge, but to do all that, all one needs is about 25MB of data. With Smart Communications Inc., mobile Internet users can have this 25MB worth of mobile Internet absolutely free. Smart is driving the so-called Monday blues away. For the next two Mondays Feb. 6 and 13 all prepaid and postpaid Smart subscribers simply need to text FREE 25MB to 2200 to have 25MB of mobile Internet, for free. “Mobile Internet users don’t realize how little volume of data they actually need to engage all day in the activities they enjoy the most, such as updating their social networks. Through this offer, we hope to encourage Smart subscribers to find out for themselves just how much they can do with 25MB of data,” said Giovanni Bacareza, head of broadband Internet and data services at Smart. Meanwhile, Smart subscribers who prefer to surf the Web their way on other days can always enjoy the telco’s “Always On” Internet packages. These packages from as low as P20 per day for 25MB of data to as much as 2GB of data at P995 for 30 days allow mobile Internet surfers to pay only for the data they wish to consume. While the casual mobile Internet user who would use his or her smartphone only for sending e-mail and social networking can avail themselves of the 25MB Always On plan for only P20 a day, the more active users who are into video streaming and data tethering can avail themselves of a 2GB Always On package for P995, valid for one month. Always On is available to all Smart prepaid and postpaid subscribers. To view the complete Always On menu, go to m.smart.com.ph/volumeplans. To activate a package, simply send ON (amount) to 2200. “With Always On, we are making it easier for Filipinos to enjoy mobile Internet connectivity at a price that fits their budget. Always On eliminates worries of being charged beyond what they are willing to spend,” Bacareza said. Always On reduces the risk of unexpected data charges as it notifies users via SMS once they have consumed 80 percent of their package. Upon expiration, charging will revert to the regular bucket pricing of P10 for every 30 minutes of use.