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2Q16 Analysts’ Briefing3 August 2016 | The Globe Tower
2
9.0Net Income
Php billion
25.6EBITDA
Php billion
• 2Q16 and 1H16 YoY increases are
driven primarily by data-related
revenues (mobile data, home
broadband and corporate data)
• 1H16 YoY increases driven by higher
revenues, overcoming increases in
subsidy and operating expenses
• Strong YoY growth in EBITDA able to
outpace depreciation charges and
non-operating expenses
Performance Highlights
59.6Service Revenues
Php billion
4.6Net Income
Php billion
+3%vs 2Q15
+8%vs 2Q15
29.7Service Revenues
Php billion
12.5EBITDA
Php billion
+7%vs 2Q15
2Q161H16
+11%YoY
+13%YoY
+3%YoY
Revenue growth remains broad-based
mobile home broadband fixed line voicecorporate data total
+9%56.2million
mobile subscribers
+6%1.1million
home broadband subscribers
-1%
+3%
+47%
+49%
+56%
+55%
+28%
+29%
+8%
+11%
2Q16vs.
2Q15
YE15 1H16 YE15 1H16
1H16vs.
1H15
61.3million
1.13million
3
Data remains key growth driver: Demand for connectivity prevalent across mobile, home broadband, and corporate data
mobile data revenues
home broadband revenues corporate data revenues
+33%vs 2Q158.6
Php billion17.8
Php billion
+46%vs 1H15
+47%vs 2Q153.5
Php billion7.0Php billion
+49%vs 1H15
+56%vs 2Q152.5
Php billion4.9Php billion
+55%vs 1H15
50%
Total data
revenues now
comprise
50% of total
revenues vs
37% in 1H15
2Q16 1H16 1H16
2Q16 1H16 2Q16 1H16
4
New partnerships, products and devices aimed to further seed data adoption and the digital lifestyle
37% 44%+7ppts
1H161H15
Globe sustains its edge as the digital lifestyle brand with new content
partners, Globe Studios and Globe LiveMDS users as a % of mobile subscribers
wireless data traffic1H161H15
New Apple iPhone SE Bigger better GoSURF50 offers
even greater value
+35%112 151Petabytes Petabytes
Launch of Globe Switch app
5
Globe’s ongoing roll-out of LTE service using the 700 and 2500 MHz frequencies addresses the public’s clamor for faster and better mobile internet service
• Last May 30, Globe acquired SMC’s telecommunications assets, which include the 700 and 2500
MHz frequencies.
• Consistent with strategies to improve internet services, Globe is fast-tracking the rollout of
LTE service nationwide using the 700 and 2500 MHz frequencies under an NTC-approved co-
use agreement.
• Globe to activate a minimum of 500 cell sites nationwide this year using the 700 MHz
frequency, which is ideal for LTE deployment due to its longer reach and better indoor
penetration qualities.
• Globe has so far deployed over 80 700MHz cell sites nationwide and over 600 2600MHz cell
sites in the Visayas and Mindanao regions to cover big businesses and highly urbanized
populated areas.
6
Taking stock of our challenges and successes so far as we gear up for the second half of 2016
Challenges
• Market competition fiercer than ever, with the incumbent gearing to take back market
share
• Voice and SMS revenues continue to soften, with the increasing scale of mobile data
adoption expected to accelerate shift from core services to data
• Stabilization of back-office and billing systems
Successes
• Globe remains the preferred brand for the Filipino digital lifestyle
• New frequencies to strengthen data network quality by providing faster speeds and more
capacity, thus paving way for more growth
• New partnerships with best of breed internet and content companies
• Gains in home broadband and corporate data, with more to come
• Corporate culture of customer care as a compelling competitive advantage
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Financial Highlights
Consolidated Financial Highlights
(in Php Mn) 1H 2016 1H 2015 YoY % 2Q16 1Q16 QoQ%
Gross Service Revenues 59,569 53,830 11% 29,702 29,867 -1%