Globe maintains dividend covenant; OKs P22/share cash dividend
"The third quarter dividend payout, totaling P2.9 billion, represents 77% of the 2015 core net income on an annualized basis."
"The third quarter dividend payout, totaling P2.9 billion, represents 77% of the 2015 core net income on an annualized basis"
Keeping its dividend payout at 77% of its core net income, Globe Telecom announced that its Board of Directors approved the declaration of the third quarterly cash dividend of P22 per share for holders of its common shares. The dividend will be paid to shareholders on record as of August 16, 2016, with payment date on September 1, 2016.
“The third quarter dividend payout, totaling P2.9 billion, represents 77% of the 2015 core net income on an annualized basis,” said Rizza Maniego-Eala, Globe Acting Chief Finance Officer. According to Eala, the P22/share dividend payment brings year-to-date total shareholder return to 25.4%, with dividend yield at 3.9% based on the closing share price of P2,252 as of August 1, 2016.
Globe Telecom sustained its growth momentum in the first half of the year, as consolidated revenues reached a total P59.6 billion, up 11% from P53.8 billion a year earlier, driven by increases in data-related service revenues across mobile, home broadband and corporate data. The company recorded net income of close to P9.0 billion, up by 3% against the P8.7 billion reported in the same period of 2015. Core net income, which excludes the impact of nonrecurring charges, foreign exchange gains and mark-to-market charges, stood at P8.8 billion, higher by 2% year-on-year. EBITDA stood at P25.6 billion for the first six months of the year, a robust 13% increase from the P22.7 billion reported a year ago while EBITDA margin stood at 43%, slightly higher than last year’s margin of 42% and in line with the full-year guidance of 40%.
Globe Telecom’s mobile revenues grew by 3% year-on-year, reaching P45.7 billion for the first half of 2016 from the P44.5 billion reported a year ago, driven by strong revenue performances of the company’s prepaid brands. The company’s home broadband business likewise sustained its growth trajectory, significantly increasing both in revenues (+49% year-on-year) and subscriber base (+38% year-on-year). Total home broadband service revenues reached P7.0 billion for the six months just ended, with total subscriber base now reaching 1.14 million customers. On the other hand, the company’s corporate data business surged by 55% to P4.9 billion for the first six months of 2016, from the P3.1 billion in the same period a year ago. This was primarily driven by the sustained demand for digital services across Philippine enterprises given the strong take-up of various data connectivity solutions, managed services, mobility solutions and cloud-based services.