Founded in 1934, Globe Telecom Inc. is the second-largest provider of telecommunications services in the Philippines. The company has more than 61m mobile subscribers and also offers broadband network, fixed-line data and fixed-line voice services.
One reason accolades flow annually to Mr. Cu, the CEO, is that GLO has continued to put up high marks.
Learn more at: http://becomeabetterinvestor.net/blog/a-large-telecom-with-room-to-run/
2. 220 September 2016
GLO’s business can be divided into three categories:
Mobile business, which generates the greatest revenue, comprises Globe Prepaid brand
and Touch Mobile (TM), which is a cellular service brand of GLO. Its postpaid service is
offered by the same two brands, making it a leader in this segment
Broadband segment, which is a high-speed Internet connection, offered in DSL and
wireless (including LTE) formats. Its fixed-line data business offers Internet service for
household and corporate users
Fixed-line voice service, the company has about 1m subscribers, which generates a
relatively small part of the company’s revenue
GLO’s total subscriber base, as of 2Q16, was about 61m. Its high capex for infrastructure
modernization, such as making broadband Internet (such as LTE) more accessible, has great
potential for excellent ROI due to low (as low as 35%) smartphone penetration in the
Philippines
Sources: A. Stotz Investment Research, company data, Thomson Reuters
Service revenue breakdown, by type 2015 Data revenue breakdown 2015
Globe Telecom Incorporated (GLO PM)
Stock information:
Name: Globe Telecom Inc.
Ticker: GLO PM
Price (PHP): 1,980
Mcap: US$5,495m
3MADTO: US$4m
Beta: 0.0x
Sector: Telecommunication
Services
Industry:
Telecommunication
Services
Major shareholders:
47% Singapore
Telecommunications Ltd.
30% Ayala Corp.
23% Free float
Background: Founded in 1934, Globe Telecom Inc. is the second-
largest provider of telecommunications services in the Philippines.
The company has more than 61m mobile subscribers. GLO also offers
broadband network, fixed-line data and fixed-line voice services.
Mobile 75% Fixed-line data & voice 10%Broadband 15%
Mobile
47%
Broadband
37%
Fixed line 16%
70
90
110
130
150
170
1,000
1,500
2,000
2,500
3,000
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
GLO PM (LHS)
Price relative to local index
(PHP) (%)
3. 320 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Background: Founded in 1934, Globe Telecom Inc. is the
second-largest provider of telecommunications services
in the Philippines.
The company has more than 61m mobile subscribers.
GLO also offers broadband network, fixed-line data and
fixed-line voice services.
Globe Telecom Incorporated (GLO PM)
5. 520 September 2016
GLO’s business can be divided into three categories:
Mobile business, which generates the greatest revenue, comprises Globe Prepaid brand
and Touch Mobile (TM), which is a cellular service brand of GLO. Its postpaid service is
offered by the same two brands, making it a leader in this segment
Broadband segment, which is a high-speed Internet connection, offered in DSL and
wireless (including LTE) formats. Its fixed-line data business offers Internet service for
household and corporate users
Fixed-line voice service, the company has about 1m subscribers, which generates a
relatively small part of the company’s revenue
GLO’s total subscriber base, as of 2Q16, was about 61m. Its high capex for infrastructure
modernization, such as making broadband Internet (such as LTE) more accessible, has great
potential for excellent ROI due to low (as low as 35%) smartphone penetration in the
Philippines
Sources: A. Stotz Investment Research, company data, Thomson Reuters
Service revenue breakdown, by type 2015 Data revenue breakdown 2015
Globe Telecom Incorporated (GLO PM)
Stock information:
Name: Globe Telecom Inc.
Ticker: GLO PM
Price (PHP): 1,980
Mcap: US$5,495m
3MADTO: US$4m
Beta: 0.0x
Sector: Telecommunication
Services
Industry:
Telecommunication
Services
Major shareholders:
47% Singapore
Telecommunications Ltd.
30% Ayala Corp.
23% Free float
Background: Founded in 1934, Globe Telecom Inc. is the second-
largest provider of telecommunications services in the Philippines.
The company has more than 61m mobile subscribers. GLO also offers
broadband network, fixed-line data and fixed-line voice services.
Mobile 75% Fixed-line data & voice 10%Broadband 15%
Mobile
47%
Broadband
37%
Fixed line 16%
70
90
110
130
150
170
1,000
1,500
2,000
2,500
3,000
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
GLO PM (LHS)
Price relative to local index
(PHP) (%)
6. 620 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
GLO’s business can be divided into three
categories:
Globe Telecom Incorporated (GLO PM)
7. 720 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Mobile, which generates the greatest revenue,
comprises Globe Prepaid brand and Touch
Mobile (TM), which is a cellular service brand of
GLO
Its postpaid service is offered by the same two
brands, making it a leader in this segment
Globe Telecom Incorporated (GLO PM)
8. 820 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Broadband segment, which is a high-speed
Internet connection, offered in DSL and wireless
(including LTE) formats
Its fixed-line data business offers Internet service
for household and corporate users
Globe Telecom Incorporated (GLO PM)
9. 920 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Fixed-line voice service, the company has about
1m subscribers, which generates a relatively
small part of the company’s revenue
Globe Telecom Incorporated (GLO PM)
10. 1020 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
GLO’s total subscriber base, as of 2Q16, was
about 61m
Its high capex for infrastructure modernization,
such as making broadband Internet (for example
LTE) more accessible,
has great potential for excellent ROI due to low
(as low as 35%) smartphone penetration in the
Philippines
Globe Telecom Incorporated (GLO PM)
11. 1120 September 2016
GLO’s business can be divided into three categories:
Mobile business, which generates the greatest revenue, comprises Globe Prepaid brand
and Touch Mobile (TM), which is a cellular service brand of GLO. Its postpaid service is
offered by the same two brands, making it a leader in this segment
Broadband segment, which is a high-speed Internet connection, offered in DSL and
wireless (including LTE) formats. Its fixed-line data business offers Internet service for
household and corporate users
Fixed-line voice service, the company has about 1m subscribers, which generates a
relatively small part of the company’s revenue
GLO’s total subscriber base, as of 2Q16, was about 61m. Its high capex for infrastructure
modernization, such as making broadband Internet (such as LTE) more accessible, has great
potential for excellent ROI due to low (as low as 35%) smartphone penetration in the
Philippines
Sources: A. Stotz Investment Research, company data, Thomson Reuters
Service revenue breakdown, by type 2015 Data revenue breakdown 2015
Globe Telecom Incorporated (GLO PM)
Stock information:
Name: Globe Telecom Inc.
Ticker: GLO PM
Price (PHP): 1,980
Mcap: US$5,495m
3MADTO: US$4m
Beta: 0.0x
Sector: Telecommunication
Services
Industry:
Telecommunication
Services
Major shareholders:
47% Singapore
Telecommunications Ltd.
30% Ayala Corp.
23% Free float
Background: Founded in 1934, Globe Telecom Inc. is the second-
largest provider of telecommunications services in the Philippines.
The company has more than 61m mobile subscribers. GLO also offers
broadband network, fixed-line data and fixed-line voice services.
Mobile 75% Fixed-line data & voice 10%Broadband 15%
Mobile
47%
Broadband
37%
Fixed line 16%
70
90
110
130
150
170
1,000
1,500
2,000
2,500
3,000
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
GLO PM (LHS)
Price relative to local index
(PHP) (%)
12. 1220 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Service revenue breakdown, by type 2015
Data revenue breakdown 2015
Mobile 75%
Fixed-line data & voice 10%
Broadband 15%
Mobile
47%
Broadband
37%
Fixed line
16%
13.
14. 1420 September 2016
GLO: Leadership
Sources: A. Stotz Investment Research, company data, FactSet
ChairmanCEO
2012 2013 2014 2015 Past 12 months
Jaime Augusto Zobel de Ayala
Mar 1989 – Present
Ernest L. Cu
Oct 2008 – Present
15. 1520 September 2016
'12 '13 '14 '15 PTM
6 7 2 3 3
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
6 7 4 3 3 8 8 1 3 5
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
5 4 4 4 5 6 7 3 3 3 4 3 3 2 2 9 8 1 4 6
Benchmarked against 140 large Telecom companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
CEO, 2008 – Present
Ernest L. Cu
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth has
been in the top 3 since ‘14
GLO ranks among the
best 42 large Telecom
companies globally
GLO: A. Stotz Profitable Growth
16. 1620 September 2016
'12 '13 '14 '15 PTM
6 7 2 3 3
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
6 7 4 3 3 8 8 1 3 5
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
5 4 4 4 5 6 7 3 3 3 4 3 3 2 2 9 8 1 4 6
Benchmarked against 140 large Telecom companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth has
been in the top 3 since ‘14
GLO ranks among the
best 42 large Telecom
companies globally
Profitability remained #3,
Growth fell to average rank
GLO: A. Stotz Profitable Growth
CEO, 2008 – Present
Ernest L. Cu
17. 1720 September 2016
'12 '13 '14 '15 PTM
6 7 2 3 3
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
6 7 4 3 3 8 8 1 3 5
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
5 4 4 4 5 6 7 3 3 3 4 3 3 2 2 9 8 1 4 6
Benchmarked against 140 large Telecom companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth has
been in the top 3 since ‘14
GLO ranks among the
best 42 large Telecom
companies globally
Profitability remained #3,
Growth fell to average rank
Profitability is driven by a
strong Profit margin
Sales growth is strong,
but Margin change
worsened and dragged
down the Growth rank
GLO: A. Stotz Profitable Growth
CEO, 2008 – Present
Ernest L. Cu
18. 1820 September 2016
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