Globe Telecom board approves P22/share cash dividend
As Jan-Mar service revenues up 14% at P29.9B; net profit rises 3% to P4.3 B
Globe Telecom said its board approved the declaration of second quarter cash dividend of P22 per share for holders of its common shares. The dividend will be paid to shareholders on record as of May 19, 2016, with payment date on June 3, 2016.
“This second quarter dividend payout totals P2.9 billion. Including the dividend payout last March, the annualized amount will translate to around 77% of last year’s core net income,” said Rizza Maniego-Eala, Globe Acting Chief Finance Officer. She added the P22/share dividend payment represents a 4.1% dividend yield based on the closing share price of P2,170 as of May 05, 2016.
Globe Telecom’s board also approved the declaration of the second semi-annual cash dividend for holders of its non-voting preferred shares payable on August 22, 2016 for shareholders on record as of August 10, 2016. The amount of the cash dividend shall be at a fixed rate of 5.2006% per share on a 30/360 day basis for the 6-month dividend period.
Globe closed the first three months of 2016 with consolidated service revenues of P29.9 billion, 14% higher than the same period in 2015. The sustained robust revenue growth was driven by gains across data-related product segments, as complemented by the continued subscriber growth for both mobile and home broadband. EBITDA margin was at 44%, higher than last year’s margin of 42% while net profit was at P4.3 billion, up 3% against the P4.2 billion reported in the year earlier period.
The company reported that mobile revenues grew by 7% year-on-year, reaching P23.1 billion in the first quarter of 2016 from the P21.6 billion reported a year ago, driven by the strong revenue performance mostly from the prepaid brands. TM, the company’s mass-market brand, increased revenues by 10% year-on-year while Globe Prepaid revenues posted a solid growth of 8%. Globe Postpaid revenues likewise posted a 3% growth from the same period of 2015 with its continued customer base expansion year-on-year.