Globe declares P4.4B in cash dividends

GLOBE Telecom has declared the first semi-annual cash dividend of P33.50 per common share or a total of P4.4 billion, representing 86 percent of 2012 core net income assuming annualized dividends.

The amount translates to a dividend yield of 6.1 percent based on end-2012 share price and is payable on March 12, 2013 to shareholders on record as of Feb. 19, 2013.

Annualized dividends, on the other hand, represent a three percent improvement over 2011’s P65 per share.

The payout is consistent with the company’s policy of distributing 75 percent to 90 percent of the prior year’s core net income instead of reported net income to ensure that dividends remain sustainable and the resulting yields competitive.

Core net income excludes all foreign exchange and mark-to-market charges, as well as non-recurring items such as the accelerated depreciation charges arising from the IT and network modernization programs that Globe is currently undertaking.

Globe closed the year with core net income of P10.3 billion, up two percent from P10.0 billion in the previous year excluding foreign exchange and mark-to-market gains and losses as well as non-recurring items.

Earlier, Globe announced 2012 consolidated service revenues of P82.7 billion, six percent above the previous year’s level of P77.8 billion. Revenue expansion was supported by an overall 10 percent increase in mobile subscriber base to 33.1 million as well as improvements across key product segments. (PR)