Globe board approves cash dividend of Php20.75/share following strong 9-mo earnings

MANILA, Nov. 9 (PNA) — Globe Telecom said its board approved the declaration of a fourth quarter cash dividend of Php20.75 per share for common shares following the strong financial performance in the January-September period. The dividend will be paid to shareholders on record as of November 24, 2015, with payment date on December 4, 2015.

The aggregate fourth quarter cash dividend payment is about Php2.75 billion and on an annualized basis, represents about 76% of2014 core net income, said newly-appointed Globe Chief Commercial Officer Albert de Larrazabal, previously the company’s Chief Financial Officer.

“This brings year-to-date total shareholder return to 35.4%, with dividend yield estimated at 3.6% based on the closing share price of Php2,280/share as of October 30,2015, representing a share price appreciation of 31.8%” Larrazabal said.

Globe Telecom generated in the January to September period fresh record revenues of Php83.4 billion, 15% higher than the Php72.7 billion reported a year ago, due to the strong growth of data across all segments and the consolidation of the results of Bayan Telecommunications in the third quarter of the year. The company’s remarkable growth also drew support from sustained customer increases on both mobile and broadband and the rising demand for mobile data, driven by products and services that cater to the growing demand for quality digital content. Net of Bayan’s revenues, Globe Telecom’s consolidated service revenues of Php82.0 billion were still up a solid 13% from the same period last year.

Globe also reported it booked a net profit of Php14.1 billion in the nine months to September, 34% higher against the net profit reported in the same period last year while core net profit reached Php12.7 billion a 10% jump from the Php11.6 billion reported in same period of 2014. Excluding Bayan’s third quarter results, Globe Telecom’s net profit and core net profit as of end-September of 2015 still grew robustly by 31% and 9%, respectively, from the same period in 2014.

The board of directors of Globe also approved the declaration of cash dividend for holders of voting preferred shares. The dividend is also payable on December 4, 2015, for shareholders on record as of November 24, 2015. The amount of cash dividend will be based on the average 30-day PDST-R2 as computed by the Philippine Dealing and Exchange Corp. (PDEX) plus 2%. The aggregate dividend payment for the voting preferred shares is about P33 million. (PNA)