Income and Profit of Globe Telecom Philippines
By EMMIE V. ABADILLA
Globe Telecom Inc. has declared its first semi-annual cash dividend of P32.50 per common share or a total of P4.3 billion, representing 86 percent of 2011 core net income.
The amount translates to a dividend yield of 5.7 percent based on end-2011 share price and is payable on March 16, 2012 to shareholders on record as of February 24, 2012.
Annualized dividends, on the other hand, represent a five percent improvement over 2010’s P62 per share.
Globe’s Board of Directors recently amended the company’s dividend policy to ensure that dividends remain sustainable and the resulting yields competitive.
Under the new policy, dividends shall be at 75 percent to 90 percent of prior year’s core net income instead of reported net income.
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 will undertake beginning this year.
Globe closed the year with core net income of P10 billion, up 11 percent from about P9.1 billion in the previous year. Excluding transformation-related professional fees and services costs of P176 million and accelerated depreciation charges of P350 million, core net income would have been up a stronger 15 percent against 2010.
Likewise, reported net income after tax of P9.8 billion was slightly up by one percent from prior year’s P9.7 billion as 2010 results included the one-time upward adjustment of P526 million arising from prepaid load credits that have either expired or have been used up.
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