Globe Telecom, Inc.
Transcription
Globe Telecom, Inc.
GLOBE ANNOUNCES 4Q AND FULL YEAR 2010 RESULTS; STRONG FINISH TO THE YEAR WITH 4Q REVENUES NEARING RECORD PEAKS: FULL-YEAR NET INCOME OF P 9.7 BILLION, CAPEX OF P 19.5 BILLION; MOBILE SUBSCRIBERS NOW AT 26.5 MILLION including OVER ONE MILLION POSTPAID SUBSCRIBERS, BROADBAND CUSTOMERS NOW AT 1.1 MILLION; DECLARES FIRST SEMI-ANNUAL CASH DIVIDEND OF P31 PER COMMON SHARE Globe Telecom, Inc. closed the year on a high note with normalized fourth quarter service revenues of P16.2 billion nearing all-time highs. The Company thus ended the year with service revenues of P62.0 billion, just slightly below prior year’s level of P62.4 billion, and an improvement over the 2% or P1.1 billion gap as of the first three quarters of the year. Revenues have been normalized to exclude the one-time, upward adjustment of P526 million representing prepaid load credits that have either expired or have already been used up. Including this one-off adjustment, consolidated service revenues for the fourth quarter and the full year would be P16.7 billion and P62.6 billion, respectively. Fourth quarter mobile revenues were 9% higher than the prior quarter and are the highest in six quarters, given the strong demand for voice and data services during the holiday season. Meanwhile, full year, normalized mobile revenues of P50.0 billion were 6% lower compared to last year given the intense price competition in the market. The fixed line and broadband business continued to grow at a fast pace, rising 32% compared to last year and 2% compared to the prior quarter. Broadband and fixed line revenues totaled P12.1 billion, and comprised 19% of consolidated service revenues compared to 15% a year ago. The Company ended the year with a total mobile SIM base of 26.5 million, 14% higher than 23.2 million in 2009. Steady gross additions and declining churn led to net SIM additions of 1.1 million this quarter – the Company’s highest since 2Q08. Globe Postpaid added 83,000 new subscribers this quarter, surpassing full year 2009 net additions, to close the year with nearly 1.1 million customers. The innovative My Super Plan and My Fully Loaded Plan, which allow subscribers to customize their plans, have both contributed to the surge in Globe’s postpaid clients. Meanwhile, the Company’s efforts to revitalize its prepaid brands, together with the clean-up of lower-quality subscribers, have translated to net subscriber gains for both Globe Prepaid and TM which closed the year with a SIM base of 13.8 million and 11.6 million, respectively. Globe Prepaid, in particular, added more than 480,000 SIMs this period, more than double last quarter’s level, and comprising 45% of this quarter’s total net SIM additions. The total prepaid segment accounted for 93% of full year’s net incremental subscribers which reversed the previous year’s net reduction of about 1.4 million SIMs. The broadband business likewise registered an impressive performance with total subscribers reaching 1.1 million at the end of the year, up 50% compared to the prior year. This segment comprises postpaid and prepaid subscribers of Globe Broadband Tattoo, the Company’s fully mobile broadband service, as well as Globe WiMAX and DSL for at-home internet access. Wireless broadband subscribers from the Company’s 3G/HSPA and WiMax offerings now comprise 76% of total subscriber base, up from 70% in 2009. The Company continued to invest in meeting the needs of its growing subscriber base by upgrading and modernizing its networks, increasing capacities to meet the surge in traffic, and improving its customer service capabilities. As a result, operating expenses and subsidy of P29.0 billion were 12% higher than the previous year’s P26.0 billion. Network-related costs alongside higher marketing and outsourced services were the key drivers behind the growth in full year expenses. Operating expenses for 2009 also included reversals arising from the settlement of previously provisioned receivables and other one-time adjustments. On a normalized basis, excluding these one-off adjustments, operating expenses and subsidy rose by a smaller 9% instead of the reported 12% growth. With flat full year revenues and higher operating expenses, normalized consolidated EBITDA declined by 9% from P36.5 billion to P33.0 billion. While mobile margins remained healthy at 63%, the fast-growing but lower-margin fixed line and broadband businesses diluted consolidated EBITDA margin to 53% compared to previous year’s 58%. Coupled with higher depreciation expenses arising from the Company’s continued expansion of its mobile and broadband networks, full year net income of P9.7 billion was 2 22% lower than last year’s P12.6 billion, but was an improvement over the 24% gap as of the first three quarters. Excluding foreign exchange and mark-to-market gains and losses as well as non-recurring items, core net income stood at P9.1 billion compared to the previous period’s P12.0 billion. “Our fourth quarter results are encouraging. Our postpaid brand delivered record subscriber additions, while our prepaid brands’ performance have improved across all key metrics, driving good growth in top-up and usage levels. Meanwhile, our broadband and corporate data businesses continued to grow steadily, providing good counterbalance to a maturing mobile business. This should provide us momentum going into 2011, which we expect to be another challenging year,” said Ernest L. Cu, President and CEO of Globe Telecom, Inc. “We believe our programs are starting to gain traction. However, as this is a hypercompetitive industry, we need to move with even more urgency towards transforming ourselves and the way we operate in order to be the brand of choice,” added Mr. Cu. In the fourth quarter, Globe further intensified its subscriber acquisition campaign with the introduction of new and affordable deals in time for the holiday season. The Company offered more handsets and gadget bundles for its postpaid plans: My Super Plan, My Fully Loaded Plan, and Platinum Plan. Globe similarly launched another firstin-the-market offering, SuperFree Weekends, which is a load accumulator program that rewards Globe Prepaid subscribers with 200 SMS to all networks and one hour of mobile internet service during weekends upon accumulation of a total of P199 worth of load from Monday to Friday. Load amount may be in any denomination and may be purchased from Globe’s various reloading channels such as AutoloadMax, call cards, via partner banks and ATMs, GCash2Load, and via E-pins, except Share-A-Load. Meanwhile, to meet the increasing demand for mobile internet services, Globe launched two BlackBerry® data plans for its postpaid and prepaid subscribers. BlackBerry® Messaging gives subscribers unlimited push email and instant messaging via BlackBerry® Messenger, Yahoo! Messenger, AOL Instant Messenger, MSN Messenger, and Google Talk. BlackBerry® Social, meanwhile, provides unlimited access to popular networking sites such as Facebook, Twitter, and MySpace, and allows instant messaging as well. Both data plans are priced at P300 each for 30 days. The growing 3 interest for internet access driven by the introduction of new and exciting access devices such as tablets and smartphones has likewise prompted Globe to develop more mobile browsing plans. Globe Tablet Plans is a set of data plans for tablet devices that come in postpaid and prepaid variants. Globe Postpaid customers can either access the internet for a cumulative 50 hours for as low as P499 for 30 days, or surf all they want for only P999 a month. Globe Prepaid subscribers, on the other hand, can enjoy unlimited internet access through SuperSurf for as low as P50 for 1 day, or for P220 for 5 days. By using the Globe SIM, subscribers can enjoy mobile browsing at speeds of up to 2 Mbps. Similarly, to entice even more customers to try surfing the internet on their mobile phones, Globe reduced the fee for its 30-day subscription to SuperSurf for both Globe Postpaid and BlackBerry® subscribers from P1,200 to P999 a month. With a lower monthly fixed rate, subscribers can have unlimited internet access using their cellphones without having to worry about costs and hidden charges. For frequent travelers as well as Filipinos based abroad, Globe continued to offer relevant services at affordable rates. During the period, the Company introduced PowerRoam to make international roaming more convenient and affordable for its postpaid subscribers. PowerRoam is an add-on roaming consumable plan which allows subscribers to enjoy discounted roaming rates in Globe’s preferred partners in 15 countries and territories. The service is valid for 30 days and available at Plans 499, 999 and 2999. Alternatively, Filipinos who wish to connect with their loved ones abroad may also use the Company’s new P200 denomination for Globe tipIDD card which provides as much as 80 IDD minutes from any Globe, TM, or Globe landline phone to anywhere in the world. On the broadband front, Globe further boosted its service offerings with the launch of the Tattoo SuperStick. The stick is an all-in-one modem and router that allows subscribers to connect to the internet at speeds of up to 3 Mbps. The gadget’s shareable WiFi connection also allows a maximum of 5 different devices within 100 meters to access the internet at the same time. The Tattoo SuperStick is also the fastest broadband stick in the market and is available for free on Tattoo Postpaid Plan 1299. The plan also comes with 200 free SMS monthly, on top of 1 month of free McAfee antivirus protection. The Company also reduced the price of its Globe Broadband Tattoo prepaid dongle kit from 4 P1,495 to P1,245 during the holiday season, in response to similar price moves by competition. Capital expenditures for 2010 totaled to P19.5 billion compared to P24.7 billion the prior year. Of this total, about P9.1 billion was for wired and wireless broadband capacities, while around P7.9 billion was used to expand and upgrade the Company’s mobile network. For 2011, the Company expects to spend an additional US$500 million, including carryover spend from projects started in 2010. “This year, we will continue to build on service quality as a key differentiator for Globe. We will implement a pro-active approach in meeting the upsurge in voice and data requirements across all customer segments, including the larger enterprises. We will also improve power and transmission management to meet our quality objectives in terms of network availability and capacity,” said Mr. Cu. Finally, in line with the Company’s dividend policy of distributing between 75% to 90% of prior year’s net income, the Board of Directors declared the first semi-annual cash dividend of P31 per common share, payable on March 18, 2011 to shareholders on record as of February 22, 2011. On an annualized basis, the first semi-annual cash dividend payment of P4.1 billion represents 84% of 2010 net income, similar to last year’s pay-out rate, and translates to an attractive dividend yield of 7.8%, using end2010 share prices. 5 2010 FINANCIAL SUMMARY Globe Group Quarter on Quarter In Php Mn Service Revenues *………………………… Mobile…………………………………….. Fixed line Voice………………………….. Fixed line Data…………………………... Broadband……………………………….. Operating Expenses and Subsidy ……… EBITDA * …………………………………….. EBITDA Margin……………………………… Net Income After Tax (NIAT)……………… Core Net Income **…………………………. Q4 Year on Year Q3 QoQ 2010 2010 Change (%) 16,214 13,006 674 890 1,644 7,990 8,224 51% 2,297 1,944 15,084 11,952 700 901 1,531 7,272 7,812 52% 2,392 1,946 7% 9% -4% -1% 7% 10% 5% -4% - 31-Dec 31-Dec YoY 2010 2009 Change (%) 62,029 49,977 2,816 3,488 5,748 29,016 33,013 53% 9,745 9,075 62,443 53,321 2,795 3,038 3,289 25,981 36,462 58% 12,569 12,003 -1% -6% 1% 15% 75% 12% -9% -22% -24% * Service revenues and EBITDA have been normalized to exclude the impact of a one-time upward adjustment, recorded in 4Q 2010, amounting to P526 million representing prepaid load credits that have either expired or have already been used up. ** Core net income excludes all foreign exchange and mark-to-market gains and losses, as well as all non-recurring items such as the P526 million adjustment discussed above. • Consolidated service revenues in 2010 of P62.0 billion were slightly below previous year’s P62.4 billion. Mobile revenues were down 6% with declining yields coming from the unlimited and bucket offerings, and price pressures resulting from intense competition. The fixed line and broadband businesses, on the other hand, rose 32% year-on-year with sustained demand from the corporate sector and the 50% expansion of broadband subscriber base from a year ago. As a result, revenue mix shifted with the mobile business comprising 81% of total service revenues from 85% in 2009, and the fixed line and broadband segment accounting for 19% of the total from 15% in 2009. • On a quarter-on-quarter basis, this quarter’s service revenues of P16.2 billion were the highest quarterly performance in two years, nearing the all-time high achieved in the fourth quarter of 2008. Mobile service revenues were boosted by the surge in postpaid plan subscriptions coupled with increased usage and top-ups in both the Globe Prepaid and TM brands. The broadband business, which recently broke the 1 million subscriber mark, remained on the growth track, and compensated for the relatively flat performance of the fixed line voice and data segments. • Operating expenses and subsidy increased by 12% from a year ago, from P26.0 billion to P29.0 billion, driven largely by higher network costs, marketing, outsourced services, and receivable-related provisions. Network-related charges such as electricity, fuel, repairs and maintenance grew as a result of an expanded 2G, 3G and broadband networks. These were offset by lower rent resulting from the termination of temporary cable leases following the completion of FOBN2, the Company’s 2nd fiber optic backbone network. Subsidy and marketing expenses also rose by 4% compared to last year, and inched up to 9% of service revenues from 8% 6 in 2009. Finally, operating costs in 2009 included reversals arising from the settlement of previously provisioned receivables, and other one-time adjustments. Excluding these one-time adjustments, operating expenses and subsidy would have grown by 9% compared to the reported 12%. • With service revenues flat and operating expenses up, consolidated EBITDA was down 9% from P36.5 billion to P33.0 billion in 2010. While mobile EBITDA margin remained healthy at 63%, the higher contribution of the fast-growing but lowermargin fixed line and broadband business diluted consolidated EBITDA margin to 53% from 58% in 2009. Depreciation charges, on the other hand, grew 4% driven by investments in the broadband and mobile networks. • The Company closed the year with net income after tax of P9.7 billion, 22% lower than previous period’s P12.6 billion. Last year’s net income included a one-time after-tax gain of about P398 million from an equipment exchange transaction with an equipment supplier. Excluding foreign exchange, mark-to-market gains and losses, as well as non-recurring items, core net income stood at P9.1 billion, down 24% from past year’s P12.0 billion. • Total capital expenditures for the year amounted to P19.5 billion (or about US$431 million) driven by the sustained expansion and upgrade of the Company’s broadband and mobile networks. This is 21% lower than year ago spending of P24.7 billion which included a one-time spend in the Company’s domestic backbone network FOBN2, a second international cable landing station in North Luzon, and the related investment in the TGN-Intra Asia submarine cable system. As a result, total capital expenditures as a percentage of service revenues dropped from 40% a year ago to 31% in 2010. At the end of the year, Globe has a total of 11,660 base stations and 6,698 cell sites to support its 2G, 3G and WiMAX services. • For 2011, Globe is allocating about US$500 million in capital expenditures. This includes about US$69 million of carryover spending from 2010. Of the US$500 million earmarked for the year, around US$185 million is allocated for the broadband business, while another US$160 million is allotted for the mobile telephony business to expand capacities, modernize equipment, and improve network quality. This year’s capex also includes US$65 million for Globe’s corporate data business and to strengthen Globe’s backend systems and delivery platforms. Finally, 2011 capex includes about US$90 million in carryover spend for international cable facilities and other one-time investments, including the construction of a new corporate office that will consolidate current offices into one location. 7 Mobile Business Quarter on Quarter In Php Mn Q4 2010 Year on Year Q3 QoQ 2010 Change (%) 31-Dec 2010 31-Dec YoY 2009 Change (%) Service Revenues Voice.….………………………………..... 6,617 6,222 6% 25,678 26,497 -3% Data..……………………………………... 6,389 5,730 12% 24,299 26,824 -9% Mobile Net Service Revenues *………….. 13,006 11,952 9% 49,977 53,321 -6% * Service revenues have been normalized to exclude the impact of a one-time upward adjustment, recorded in 4Q 2010, amounting to P526 million representing prepaid load credits that have either expired or have already been used up. • Mobile revenues in 2010 were affected by continued multi-SIM usage, subscriber preference for value offers, and price pressures resulting from intense competition. Despite an overall growth in voice and SMS traffic, revenues were weighed down by the lower-yield bucket and unlimited services. As a result, the mobile business closed the year with service revenues of P50.0 billion, 6% below previous year’s level of P53.3 billion. In relation to the third quarter, however, revenues increased by 9% in the fourth period on higher postpaid plan subscriptions, growth in prepaid subscribers, and higher ARPUs and usage during the holiday season. • Mobile voice revenues accounted for 51% of total mobile service revenues in 2010 and closed at P25.7 billion, down 3% from previous year. Revenues from unlimited and bulk voice subscriptions as well as roaming services were significantly higher than in 2009. These gains, however, were not enough to fully compensate for the decline in regular voice and IDD services. • Mobile data revenues, on the other hand, accounted for 49% of total mobile service revenues, and decreased by 9% from P26.8 billion to P24.3 billion in 2010. Revenues from mobile browsing nearly doubled year-on-year given the popularity of social networking sites, affordable pricing of mobile data plans, and the increase in number of smartphones and access devices available in the market. Revenue gains from this segment, however, were unable to fully cover the decline in regular SMS revenues which remained to be affected by the lower-yield bucket and all-you-can text service offerings. 8 Key Drivers for the Mobile Business Quarter on Quarter 31-Dec 2010 2009 4% 26,470,859 23,245,006 14% 982,878 8% 1,066,137 851,368 25% 25,404,722 13,834,716 11,570,006 24,420,124 13,351,243 11,068,881 4% 4% 5% 25,404,722 13,834,716 11,570,006 22,393,638 13,048,861 9,344,777 13% 6% 24% 1,176 1,168 1% 1,192 1,283 -7% 155 92 146 87 6% 6% 153 92 182 98 -16% -6% 3,959 3,668 8% 3,489 5,382 -35% 28 27 56 24 -50% 13% 37 27 37 34 -21% 1.32% 1.63% 1.92% 1.95% Globe Prepaid ……………... 5.65% 6.39% 6.23% 6.75% TM..………………………….. 6.41% 6.76% 6.62% 8.35% Prepaid .…………………………. Globe Prepaid …………….. TM ………………………….. Ave. Revenue Per Subscriber (ARPU) Net ARPU Globe Postpaid . ……………….. Prepaid Globe Prepaid ……………... TM..………………………….. Subscriber Acquisition Cost (SAC) Globe Postpaid…………………. Prepaid Globe Prepaid…………….... TM………………………….... Ave. Monthly Churn Rate (%) Globe Postpaid ...……………… Q3 2010 2010 26,470,859 25,403,002 1,066,137 Year on Year 31-Dec Cumulative Subscribers (or SIMs) – Net End of Period Globe Postpaid . ……………….. Q4 QoQ Change (%) YoY Change (%) Prepaid * ARPUs have been normalized to exclude the impact of a one-time upward adjustment, recorded in 4Q 2010, amounting to P526 million representing prepaid load credits that have either expired or have already been used up. • Globe closed the year with a total mobile SIM base of 26.5 million, 14% higher than previous year’s 23.2 million and 4% above third quarter’s level of 25.4 million. Gross additions in the fourth quarter was sustained at 5.6 million, bringing full year gross acquisitions to 21.8 million, 12% better than year ago level of 19.4 million. With churn rates improving across all brands, net subscriber additions once again breached the 1 million mark in the fourth quarter, the highest quarterly output since 2Q08. This brought full year incremental subscribers to 3.2 million compared to previous year’s net reduction of 1.4 million. • Globe Postpaid reached a record high net acquisition in the fourth period with over 83,000 new subscribers. As a result, the postpaid brand hit an all-time high in full year net additions with about 215,000 new subscribers in 2010. Globe Prepaid likewise posted strong quarter growth by bringing in over 480,000 net acquisitions. This brought full year net additions to over 785,000 against previous year’s net reduction of about 244,000. TM similarly sustained its strong performance with 9 fourth quarter net additions of over 500,000, which brought its 2010 total to 2.2 million compared to 2009’s net reduction of 1.2 million. • Blended net ARPU for the year was at P168, 9% lower year-on-year driven by loweryield value offers and the negative impact of the strong peso on US$-linked international long distance revenues. On a quarter-on-quarter basis, however, blended net ARPU of P167 was seasonally higher than third quarter level, with ARPU growth across all brands. • Globe Prepaid subscriber acquisition cost (SAC) remained flat against last year’s level, while TM SAC was down 21% year-on-year on lower subsidies. Consolidated prepaid SAC remains recoverable within a month’s net ARPU. On the other hand, postpaid subscriber acquisition cost substantially declined from a year ago due largely to lower subsidy, advertising and promotion spend. Costs remain recoverable within the 24-month contract period for postpaid subscribers. Fixed Line and Broadband Business Quarter on Quarter In Php Mn Net Service Revenues Fixed Line Voice ….…………………. Fixed Line Data ………………………. Broadband ..…………………………... Fixed Line & Broadband Net Service Revenues .………………………………… • Q4 Q3 2010 2010 Year on Year QoQ Change (%) 31-Dec 31-Dec 2010 2009 YoY Change (%) 674 890 700 901 -4% -1% 2,816 3,488 2,795 3,038 1% 15% 1,644 1,531 7% 5,748 3,289 75% 3,208 3,132 2% 12,052 9,122 32% Globe’s fixed line and broadband business continued to show strong growth, with service revenues rising 32% year-on-year, driven by the sustained robust performances of the broadband and fixed line data segments. The broadband business increased its revenues by 75% against last year’s figure on the back of strong subscriber growth, while the fixed line data business continued to be fueled by strong demand from the BPO, trade, retail, and services sectors. 10 Quarter on Quarter Year on Year Q4 Q3 QoQ Change (%) 31-Dec 31-Dec 2010 2009 YoY Change (%) 2010 2010 Cumulative Fixed Line Voice Subs Net (End of period) 1……………........ 618,606 599,059 3% 618,606 589,331 5% Cumulative Broadband Subscribers Wireless 2 ……………………………. Wired…………………………………. 819,276 255,077 762,870 243,590 7% 5% 819,276 255,077 499,383 216,089 64% 18% Total (end of period)………………….. 1,074,353 1,006,460 7% 1,074,353 715,472 50% 1 Includes DUO and SUPERDUO subscribers. Third quarter figures have been restated for comparability. 2 Includes fixed wireless and fully mobile broadband subscribers. • Cumulative fixed line voice subscribers grew 5% year-on-year to almost 619,000, driven by higher subscriptions to the postpaid DUO and SUPERDUO services, as well as to the bundled voice and broadband plans. This resulted to the slight year-onyear increase in fixed line voice revenues. On a sequential basis, cumulative voice subscribers increased by 3% driven mainly by higher subscriptions to both postpaid and prepaid DUO and SUPERDUO service. • Broadband subscribers grew by 50% from last year’s level to close with more than 1,074,000 subscribers, driven by significant gains in the fully mobile segment. The wireless segment accounted for 89% of cumulative net additions for the year and 76% of total broadband subscribers. Full year revenues were up 75% to P5.7 billion, with the segment now comprising 9% of consolidated revenues compared to 5% last year. For questions, please contact: Ditas L. Santamaria Financial Planning & Analysis (632) 730-2982 Email: [email protected] JoMari S. Fajardo Investor Relations (632) 730-2820 Email: [email protected] 11 ANNEXES Globe Group Quarter on Quarter In Php Mn Q4 2010 Financing Costs – net Interest Expense……………………………….. Gain (Loss) on derivative instruments……….. Swap costs and other financing costs……….. Foreign Exchange (loss) / gain – net............... Year on Year Q3 QoQ 2010 Change (%) 31-Dec 31-Dec YoY 2010 2009 Change (%) (534) (4) (25) (13) (576) (512) (42) (10) 683 119 4% -90% 150% -102% -584% (1,982) (28) (58) 465 (1,603) (2,097) (47) (39) 287 (1,896) -5% -40% 49% 62% -15% Interest Income …………………………………… Others – net……………………………….............. 57 (59) 49 45 16% -231% 219 (31) 272 523 -19% -106% Total Other Expenses…………………………… (578) 213 -371% (1,415) (1,101) 29% Quarter on Quarter Q4 2010 Year on Year Q3 QoQ 2010 Change (%) 31-Dec 31-Dec YoY 2010 2009 Change (%) Total ILD Revenues (in Php Mn) ……………… 3,093 3,128 -1% 12,794 14,317 -11% Average collection rates for the period (Php to US$1)……………………………………………….. 43.747 45.933 -5% 45.314 47.777 -5% Total ILD Minutes (in million minutes) 1 …….. Inbound…………………………………………….. Outbound.………………………………………….. ILD Inbound / Outbound Ratio (x) ………………. 598 501 97 5.16 587 491 96 5.11 2% 2% 1% 2,349 1,968 381 5.17 2,388 2,019 369 5.47 -2% -3% 3% 1 ILD minutes originating from and terminating to Globe and Innove networks. 12 Globe Group Quarter on Quarter In Php Mn Q4 Q3 QoQ 2010 2010 Year on Year 3131YoY Dec Dec Change 2010 2009 (%) 4,239 2,948 44% 2,993 1,418 111% 1,246 1,530 -19% Cost of sales…………………………………… Less: Non-service revenues…………………. Subsidy………………………………………… 1,291 892 399 1,103 694 409 Change (%) 17% 29% -2% Selling, Advertising and Promotions ………. Staff Costs ……………………………………... Utilities, Supplies & Other Admin Expenses... Rent……………………………………………… Repairs and Maintenance…………………….. Provisions ………………… …………………... Services and Others…………………………… Operating Expenses…………………………. 1,268 1,281 924 762 913 350 2,093 7,591 1,090 1,075 891 737 829 415 1,826 6,863 16% 19% 4% 3% 10% -16% 15% 11% 4,269 5,089 3,339 2,809 3,273 1,466 7,525 27,770 3,766 4,981 2,693 3,469 2,582 725 6,235 24,451 13% 2% 24% -19% 27% 102% 21% 14% Depreciation and Amortization ……………. Costs and Expenses…………………………. 4,836 12,826 4,584 11,856 5% 8% 18,086 47,102 17,388 43,369 4% 9% Globe Group In Php Mn Capital Expenditures (Cash) ……………………………. 31-Dec 31-Dec 2010 2009 YoY change (%) 18,813 22,057 -15% Increase (Decrease) in Liabilities related to Acquisition of PPE & Capitalized Asset Retirement Obligations….. 654 2,645 -75% Total Capital Expenditures1 …………………………… 19,467 24,702 -21% Total Capital Expenditures / Service Revenues (%)….. 31% 40% 1 Consolidated capital expenditures include property and equipment, intangibles and capitalized borrowing costs acquired as of report date regardless if payment has been made or not. Globe Group Balance Sheet Data (in Php Mn) Total Assets …………………………………………….. Total Debt ……………………………………………….. Total Stockholders’ Equity …………………………….. Financial Ratios (x) Total Debt to EBITDA ………………………………….. Debt Service Coverage………………………………… Interest Cover (Gross) ………………………………… Debt to Equity (Gross) ………………………………… Debt to Equity (Net) ……………………………………. Total Debt to Total Capitalization (Book) ……………. Total Debt to Total Capitalization (Market) ...………... 31-Dec 31-Dec YoY 2010 2009 Change (%) 130,628 50,371 46,824 127,644 47,477 47,709 1.50 2.29 10.91 1.08 0.95 0.52 0.32 1.30 2.08 11.89 1.00 0.87 0.50 0.28 2% 6% -2% 13