Globe declares
22/share cash dividend
The Globe Telecom, Inc. board has approved a cash dividend of 22 per share for common shares for shareholders on record as of February 22, 2016, with payment date on March 4, 2016.
“The dividend payout is in line with the policy of distributing 75%-90% of prior year’s core net income,” announced Rizza ManiegoEala, Globe Acting Chief Finance Officer, adding the quarter’s dividend payment totals about 2.9 billion.
On an annualized basis, the dividends represent a payout of 77% of 2015 core net income.
On top of the dividend payment, Globe has also allocated 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 towards enhancing its customers’ digital lifestyle.
Globe Telecom’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% of annual revenues for its infrastructure build.
Globe had a capex to revenue ratio of 28% in 2015, and 27% in 2014 for both wireless and wireline, which were higher than the Philippine telecommunications industry average of 23% in both 2015 and 2014.
Globe Telecom posted consolidated service revenues of 113.7 billion, 15% higher than the 99.0 billion reported a year ago, supported by 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 16.5 billion, up 23% from 13.4 billion recorded a year earlier.
Sustained customer uptake in both mobile and broadband and increasing demand for mobile data and high-speed internet connectivity also provided support for Globe Telecom’s revenue growth.
Even excluding Bayan’s revenues in the second half of 2015, the company’s consolidated revenues reached 110.8 billion, up 12% from a year earlier.