Fixed Line and Broadband Business

2013 Annual and Sustainability Report
Globe Prepaid gross acquisitions substantially improved by
20% or 631,156 new SIMs in the fourth quarter versus the third
quarter, bringing the full year gross additions in 2013 to reach
13.2 million or 12% higher than 2012 level of 11.8 million. This
is mainly attributed to continued popularity of unlimited and
bucket offers bundled with the best chat apps that have gained
traction this year, as well as the successful Free Facebook
campaign launched in November 2013. Full year 2013 net
incremental subscribers also improved by 43% to 1,396,299
from 977,710 in 2012 despite the elevated churn rates as of
end 2013 of 5.75% from 5.63% in 2012. Globe Prepaid ARPU
declined by 6% year-on-year resulting from the revenue dilution
from unlimited and bucket service offerings. Globe Prepaid
SAC, on the other hand, were significantly higher than last year
due to higher ads and promo spending and commissions. Globe
Prepaid SAC, however, remained recoverable within a month’s
ARPU.
TM on the other hand, generated the highest gross acquisitions
particularly during the fourth quarter, achieving a record
high of 4.8 million new SIMs or 20% better than previous
quarter level of 4,005,807. The free Facebook promo boosted
the fourth quarter acquisition and TM’s ramp-up in project
executions in order to stay in step with the competition’s
acquisition efforts. This brings the full year total gross
additions to nearly 17 million, up 38% from 12.3 million in 2012.
Even with the slightly elevated churn rates as of end December
2013, full year net incremental subscribers improved by 101%
from about 1.8 million in 2012 to 3.7 million. TM ARPU was
down by 8% year-on-year with the continued shift from regular
pay-as-you-use service to unlimited and value offers. TM
SAC, however, was up 69% year-on-year due to higher subsidy
and increased ads and promo spending. TM SAC remained
recoverable within a month’s ARPU.
Fixed Line and Broadband Business
Globe offers a full range of fixed line communications
services, wired and wireless broadband access, and end-to-end
connectivity solutions customized for consumers, SMEs (Small
& Medium Enterprises), large corporations and businesses.
Globe Telecom’s fixed line voice services include local, national
and international long distance calling services in postpaid and
prepaid packages through its Globelines brand. Subscribers
get to enjoy toll-free rates for national long distance calls with
other Globelines subscribers nationwide. Additionally, postpaid
fixed line voice consumers enjoy free unlimited dial-up internet
from their Globelines subscriptions. Low-MSF (monthly service
fee) fixed line voice services bundled with internet plans are
available nationwide and can be customized with value-added
services including multi-calling, call waiting and forwarding,
special numbers and voice mail. For corporate and enterprise
customers, Globe offers voice solutions that include regular and
premium conferencing, enhanced voice mail, IP-PBX solutions
and domestic or international toll free services.
The Company’s fixed line data services include end-to-end data
solutions customized according to the needs of businesses.
Globe’s product offerings include international and domestic
leased line services, wholesale and corporate internet access,
data center services and other connectivity solutions tailored to
the needs of specific industries.
nationwide using a plug-and-play USB modem. This service
is available in both postpaid and prepaid packages. In
addition, consumers in selected urban areas who require
faster connections have the option to subscribe to Tattoo
Torque broadband plans using leading edge GPON (Gigabit
Passive Optical Network) technology with speeds of up to
100 Mbps.
In 2013, Tattoo introduced a lower price proposition
for its 4G product suite (Tattoo 4G Flash for only ₱995;
Tattoo Prepaid Lifestyle sticks at ₱1,295). Meanwhile,
Tattoo At-Home offered free unlimited calls to Globe/
TM in addition to landline and internet service in every
Tattoo @ Home Broadband Bundle. Tattoo Prepaid &
Tattoo Postpaid launched several attractive promotions
such as: 4G SuperStick priced down to ₱1,995; LTE plans
which start at ₱1,299 now comes with a FREE LTE dongle;
Tattoo consumable plans were further improved with more
browsing hours for Plan 299 and for Plan 499. Also during
this period, Tattoo launched a revolutionary offer bannering
the most affordable tablet bundles, wherein its subscribers
can get three devices FREE with unlimited internet browsing
and mobile text and call starting at Plan 1,298. Tattoo
Prepaid tablet bundles was also made available during the
last quarter wherein subscribers can save as much as ₱2,845
with these new offers which carry affordable tablet selection
starting at ₱4,995 for a CloudPad 705W or a SkyWorth
S73 and ₱6,995 for a SkyWorth S82. All these bundles
come with FREE Tattoo Mobile Wi-Fi that connects up to
10 devices with speeds of up to 7.2 Mbps. Likewise, Tattoo
LTE Mobile Wi-Fi with LTE speed up to 42 Mbps (with power
bank feature which recharges your phone up to 2 times),
was made available for only ₱4,995 with FREE 5GB of data
for 7days. Tattoo Postpaid on the other hand, now offers
a FREE Mobile Wi-Fi with speed up to 12 Mbps with Tattoo
unlimited Plan 999.
Globe Tattoo Broadband ended 2013 with ₱10.4 billion, up
20% compared to 2012 as a result of the strong growth in its
customer base, reaching over two million subscribers as of
end-December 2013. The outstanding revenue performance
of the broadband business resulted from the continued
aggressive acquisitions campaigns, attractive pricing offers
and product bundles.
The fixed line data segment continued its revenue growth
with ₱4.7 billion, 13% higher year-on-year and 4% higher
quarter-on-quarter. The increase was due to the Company’s
continued push to expand its portfolio to remain responsive
to the evolving needs and increasing demand for high-speed
data nodes, transmission links, and bandwidth capacity
of its business and enterprise clients, including those in
the financial services, retail, offshoring and outsourcing
industries.
Total fixed line voice revenues declined by 4% quarter-onquarter bringing total revenues to close the year at ₱2.6
billion or 2% lower from ₱2.7 billion the previous year. The
decline was primarily caused by lower international airtime
rates.
Globe offers wired, fixed wireless, and fully mobile internet-onthe-go services across various technologies and connectivity
speeds for its residential and business customers. Tattoo@
Home consists of wired or DSL broadband packages bundled
with voice, or broadband data-only services which are available
at download speeds ranging from 1 mbps up to 15 mbps. In
selected areas where DSL is not yet available, Globe offers
Tattoo WiMAX, a fixed wireless broadband service using its
WiMAX network. Meanwhile, for consumers who require a fully
mobile, internet-on-the-go broadband connection, Tattoo Onthe-Go allows subscribers to access the internet using HSPA+,
3G with HSDPA, EDGE, GPRS or Wi-Fi at various hotspots
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2013 Annual and Sustainability Report
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2013 Annual and Sustainability Report
10 January 2014
Philippine Stock Exchange
3/F Tower One and Exchange Plaza
Ayala Triangle, Ayala Ave., Makati City
Attention:
Ms. Janet A. Encarnacion
Head, Disclosure Department
Gentlemen:
In compliance with the Exchange’s Rule on Minimum Public Ownership, please find
attached our Public Ownership Report for the quarter-ended 31 December 2013.
We trust that you will find the report in order.
Thank you.
Very truly yours,
Solomon M. Hermosura
Corporate Secretary
cc:
Bureau of Internal Revenue
Office of the Assistant Commissioner
Large Taxpayers Service
Rm. 301, BIR National Office Building
BIR Road, Diliman, Quezon City
(submitted pursuant to Section 6.B of the Revenue Regulation No. 16-2012)
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2013 Annual and Sustainability Report
GLOBE TELECOM, INC.
Computation of Public Ownership as of December 31, 2013
A
Number of Issued Shares
Less: Number of Treasury Shares (if any)
Number of Issued and Outstanding Shares
Less:
Directors
Jaime Augusto Zobel de Ayala
Direct
Indirect (thru AC as nominee share)
Delfin L. Lazaro
Indirect (thru AC as nominee share)
Mark Chong Chin Kok
Indirect (thru STI as nominee share)
Fernando Zobel de Ayala
Indirect (thru AC as nominee share)
Gerardo C. Ablaza, Jr.
Direct
Indirect (thru PCD)
Indirect (thru AC as nominee share)
Romeo L. Bernardo
Direct
Indirect (thru PCD)
Tay Soo Meng
Indirect (thru STI as nominee share)
Manuel A. Pacis*
Indirect (thru PCD)
Xavier P. Loinaz
Direct
Guillermo D. Luchangco
Direct
Sub-total
Officers
Rebecca V. Eclipse
Indirect (thru PCD)
Gil B. Genio
Indirect (thru PCD)
Alberto M. de Larrazabal
Direct
Marisalve Ciocson-Co
Direct
Solomon M. Hermosura
Direct
Bernard P. Llamzon
Direct
Vicente Froilan M. Castelo
Direct
Sub-total
Principal Stockholders
Singapore Telecom Int'l. Pte Ltd
Direct
Ayala Corporation
Direct
Sub-total
78
Number of Shares
B
Total
132,595,709
0
132,595,709
% to total
I/O Shares
A
B
Total
-
TOTAL
-
%
77.7831 %
103,137,097
Total Number of Shares Owned by the Public
29,458,612
*Messrs. Pacis and Ernest Lawrence L. Cu directly hold one (1) preferred share each.
0.0000 %
0.0000 %
2
1
0.0000 %
1
0.0000 %
2
0.0000 %
1
0.0172 %
0.0294 %
0.0000 %
22,741
38,973
1
0.0008 %
0.0020 %
1,079
2,659
0.0000 %
2
0.0001 %
100
0.0000 %
10
0.0128 %
0.0623 %
17,000
82,572
0.0162 %
21,415
0.0391 %
51,838
0.0033 %
4,322
0.0012 %
1,539
0.0000 %
20
-
Others
Government
Banks
Employees
Lock-Up Shares
Sub-total
%
0
0.0006 %
0.0603 %
814
79,948
47.2462 %
62,646,487
30.4143 %
77.6606 %
40,328,090
102,974,577
PUBLIC OWNERSHIP PERCENTAGE
Total Number of Shares Owned by the Public
29,458,612 shares
132,595,709 shares
=
22.22%
Number of Issued and Outstanding Common Shares
=
132,595,709
Number of Outstanding Common Shares
Number of Treasury Shares
Number of Listed Shares
Common Shares
Preferred Shares
Number of Foreign-Owned Shares
Common Shares
Preferred Shares
Foreign Ownership Level (%)
Foreign Ownership Limit (%)
=
=
132,595,709
0
=
=
131,933,828
158,515,021
=
=
=
=
86,299,042
0
29.64%
40%
References to the reported shareholdings:
Jaime Augusto Zobel de Ayala
Delfin L. Lazaro
Mark Chong Chin Kok
Fernando Zobel de Ayala
Gerardo C. Ablaza, Jr.
Romeo L. Bernardo
Tay Soo Meng
Manuel A. Pacis
Xavier P. Loinaz
Guillermo D. Luchangco
Rebecca V. Eclipse
Gil B. Genio
Alberto M. de Larrazabal
Marisalve Ciocson-Co
Solomon M. Hermosura
Bernard P. Llamzon
Vicente Froilan M. Castelo
Singapore Telecom Int'l. Pte Ltd
Ayala Corporation
-
SEC Form 23-B dated Feb. 27, 2007
SEC Form 23-B dated December 2002
SEC Form 23-A dated April 19, 2013
SEC Form 23-B dated Feb. 27, 2007
SEC Form 23-B dated April 22, 2013
SEC Form 23-B dated May 23, 2013
SEC Form 23-A dated Feb. 9, 2011
SEC Form 23-A dated April 19, 2011
SEC Form 23-B dated April 2, 2009
SEC Form 23-B dated July 5, 2013
SEC Form 23-B dated May 20, 2013
SEC Form 23-B dated Sept. 24, 2013
SEC Form 23-B dated July 18, 2013
SEC Form 23-B dated Aug. 8, 2013
SEC Form 23-B dated June 13, 2013
SEC Form 23-B dated Sept. 25, 2013
SEC Form 23-B dated May 7, 2013
SEC Form 23-B dated May 10, 2011
SEC Form 23-B dated May 9, 2013
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