Message from the Chairman


It is with great pride that I present to you the third integrated report of Globe Telecom. This year, Globe achieved an important milestone, as the company launched the “Globe At Home AirFiber 5G postpaid plans.” This has made the Philippines the first Southeast Asian country to experience the fifth-generation (5G) fixed wireless broadband.


EMPOWERING MORE CUSTOMERS

Over the years, our company has been at the forefront of enabling digital inclusion and empowering Filipinos with connectivity. Today, we cater to over 94.2 million mobile customers and 2 million home broadband customers, a notable 25% increase compared to the year 2018.


At Globe, the belief is that we grow when our customers further enhance their digital lifestyle, the economy flourishes through digital transformation, and the natural ecosystem is nurtured in the process. With the ability to contribute towards a digitally enabled economy, our mission is to revitalize businesses and empower customers with enhanced digital capabilities.


FINANCIAL PERFORMANCE

This year, despite dampened economic growth in the global and domestic front, Globe witnessed strong financial performance with a 12% growth on revenues year on year.


In line with past year trends, revenue growth has been predominantly data-driven. Total data revenues accounted for 71% of total service revenues compared to 61% reported last year. We have also been able to consistently increase our customer base; we witnessed a 27% increase in customers this year compared to 2018. Aligned with our fiduciary duty to generate sustained value for our shareholders, we were able to deliver a payout ₱12.1 billion in common share dividends.


It is noteworthy that we have been able to showcase this performance in the context of a transformed market dynamic with a new market entrant. This reaffirms my belief that the evolving market dynamic has helped us strategize and innovate to reaffirm the reputation of being a nimble service provider committed to providing world-class services to our customers.


CAPITAL INVESTMENTS AND PARTNERSHIPS

In our quest to enhance customer experience and build the Philippines’ digital economy, we made substantial capital investments this year. We spent ₱51 billion, which represents 34% of gross service revenues and 67% of full-year EBITDA. We have also forged partnerships to anchor infrastructure development at a larger scale.


In our endeavor to digitally transform businesses, we acquired 77% equity interest in EC Pay, Inc. The ECPay platform will enable small business owners to offer more products and services. This move will also future-proof Globe’s distribution network, bringing the company a step closer to its vision of a digitally enabled Philippines. Additionally, this year our GCash partnership with CIMB Philippines reached a milestone of 1 million GSave accounts opened after only eight months post-launch. We entered into a consortium with Syniverse for Mobile Number Portability.


DELIVERING VALUE TO SOCIETY AND THE ECOSYSTEM

While we worked hard to sustain the value of the company, we cemented our commitment to deliver value to society and the natural ecosystem. We believe that such an approach to business makes us future-ready and allows us to remain relevant and resilient for our customers.


Alignment with United Nations Sustainable Development Goals is integral in our sustainability strategy. Our focus areas in this vision include education, environmental conservation, digital inclusion, and development. We have rolled out various programs to realize our vision. In partnership with the Department of Education, we conducted a National Summit on Digital Citizenship and Responsibility, expanding the reach of our Digital Thumbprint Program. We encourage social innovators, using information and communications technology (ICT), through the Future Makers program. 


In line with Globe’s commitment to holistic value creation, we have been making considerable progress in our environmental stewardship programs. This year, we rolled out our Marine Protection Program for Boracay and Siargao Islands aimed towards biodiversity conservation. In recognition of the material risks and opportunities climate change presents, we have devised a dedicated climate strategy.


Our strategy focuses on building the resilience of our value chain to extreme weather events and ensuring the protection of the Globe network at the time of disasters. While focusing on climate adaptation, our strategy also contributes to climate change mitigation by fostering an organizational culture of resource conservation and actively taking part in reforestation activities. Globe is also committed to resource usage optimization and waste minimization with a focus on effective E-waste management.


RISK GOVERNANCE

The robust performance we witnessed this year serves as a testament to our integrated approach to value creation and our commitment to adopting a holistic approach to risk management.


Globe instated a dedicated Board Risk Oversight Committee (BROC) in April 2019. The BROC was established to assist the Board of Directors in fulfilling its oversight responsibilities in relation to risk governance to anchor a clear definition of risk-taking responsibility and authority while ensuring the effective functioning of the Enterprise Risk Management framework.


This step will play a crucial role in enhancing the robustness of the company by proactively managing risks, thereby ensuring continuous stakeholder value generation.


GLOBE ON TAKING THE LEAD

The transformative growth and progress we have been able to achieve toward upgrading digital infrastructure and capabilities have the potential to fundamentally change the way people live in our country.


Globe has always been a people-focused business, with our employees taking the lead to devise creative solutions to meet the emerging needs of customers. The timely delivery of services of a high-quality standard has helped Globe make quality a hallmark of its service delivery. With the substantial enhancement in infrastructural capabilities coupled with our brand value, Globe has been able to fortify its leadership position in the minds of its stakeholders. 


I look forward to the shared growth trajectory and the sustained value Globe will generate in the years to come for our country and its people.

A Message from Ernest Cu


For the President and CEO, 2019 was a year of remarkable growth driven by innovative customer-centric solutions.

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Our third Integrated Report contains a detailed and comprehensive approach to Globe’s value creation process with a strategic amalgamation of financial and non-financial disclosures.
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