Globe Telecom Inc. Press Release 3Q 2019 Page 1 of 3

GLOBE ANNOUNCES 3rd QUARTER 2019 RESULTS:

STRONG REVENUE MOMENTUM SUSTAINED;

EBITDA MARGIN OF 52% AND CORE NET INCOME GROWTH OF 20% YoY

GLOBE SPENT P32.0 BILLION IN CAPEX WITH MAJORITY FOR ITS NETWORK

GLOBE BOARD APPROVES 4th QUARTERLY DISTRIBUTION

OF COMMON CASH DIVIDENDS OF P22.75 PER SHARE

Globe closed the first nine months of 2019 with consolidated service revenues of P110.6 billion, 13% higher

than a year ago fueled by the strong growth across all data-related products and services. Total data

revenues accounted for 70% of total service revenues vis-a-vis 59% from a year earlier, as Globe reaped

the benefits of its expanding 4G/LTE network. Consolidated EBITDA stood at P57.9 billion with EBITDA

margin remaining high at 52%. Consolidated net income amounted to P17.7 billion, growing by 20% from

the year before. Core net income recorded a robust 20% increase from P14.9 billion in 2018 to P17.9 billion

this period.

Ernest L. Cu, President and CEO of Globe Telecom Inc., commented.

“We are happy that the sustained topline and profit growths we have achieved over the past three quarters

have positioned us well as we head into the fourth quarter. We are likewise excited that, as we gear up for

the roll out of our At Home Air Fiber 5G service, we are shaping the future of the nation and solidifying

our leadership role in providing fast and reliable internet in the markets we serve.”

For the first nine months of the year, mobile revenues posted P83.0 billion or up 13%, besting the P73.7

billion reported in the same period of 2018. Mobile revenues remained the top contributor accounting for

75% of the total service revenues led by the Company’s Prepaid brands. Total mobile subscriber base is

now at 97.4 million, up 5% from last quarter.

From a product perspective, mobile data revenues totaled P52.2 billion in the first nine months of 2019.

This was propelled by a combination of Globe’s compelling data bundles, better network coverage,

improved smartphone affordability and the growing number of subscribers who engage on social networks,

stream videos and music content as well as gaming. Mobile data now accounts for 63% of mobile revenues

from 49% a year ago. Mobile data traffic likewise improved from 641 petabytes in same period of 2018 to

1,200 petabytes this period supported by the continued growth in consumer’s appetite for data. Meanwhile,

mobile voice and mobile SMS revenues for the period ended at P18.5 billion and P12.3 billion, lower year-

on-year by 15% and 22%, respectively, as usage continues to shift from traditional to data-based services.

Globe’s home broadband revenues grew 19% year-on-year to reach P16.1 billion this period, powered by

the 40% subscriber expansion in fixed wireless solutions. This was likewise boosted by the increasing

popularity of Home Prepaid Wi-Fi and Globe’s compelling broadband bundles and plans that allow its

customers to access and stream the best local and international content. Total home broadband subscriber

base now stands at over 1.9 million, up 24% from a year ago. As Globe gears up for the roll out of its At

Home Air Fiber 5G service, the Company is well-positioned to sign up more high-value broadband

customers moving forward.

Globe Telecom Inc. Press Release 3Q 2019 Page 2 of 3

Corporate data revenues generated a total of P9.5 billion as of end-September of 2019, up a robust 12%

from the P8.4 billion reported in 2018. This was largely due to the higher circuit count that increased our

capacity, coupled with the increase in usage for both intenet and domestic services. The strong demand for

various data connectivity solutions, managed and cloud-based services also contributed to this period’s

revenue growth.

Globe’s total operating expenses including subsidy amounted to P52.8 billion for the period, or 8% higher

from a year ago, leading to consolidated EBITDA to end the first nine months of 2019 at P57.9 billion, up

17% versus same period last year. Net income posted P17.7 billion, up 20% from the year before, due to

the upside in EBITDA, offsetting the increase in depreciation charges and non-operating expenses for the

period just ended. The increase in non-operating expenses this period was mainly on higher losses from

affiliates and the impact of the one-time loss on the remeasurement of retained interest following the

reacquistion of the 51% interest in Yondu (P471 million) which offset the gain from the sale of 20% interest

in AFPI to Mynt (P240 million). Core net income, which excludes the impact of non-recurring charges, and

foreign exchange and mark-to-market charges, stood at P17.9 billion, 20% higher year-on-year.

With Globe’s continued commitment to improve the state of internet in the Philippines, the Company spent

a total of nearly P32.0 billion as of the first nine months of 2019 to enhance its network’s data capacities

and capabilities. Capex allocation for data-related requirements remained high at 75% of the total

expenditures for the period. These investments have already begun to bear fruit as evidenced in the latest

results of 3rd party network quality test providers, which show significant improvements in Globe’s mobile

performance metrics.

To ensure these network improvements are sustained, the Company continues to reinvest in the network

and is currently on track to reach capital expenditure commitments of $1.2Bn by the end of 2019. This is

consistent with the guidance provided earlier in the year; however, given the nature of these commitments,

cash capital expenditures is expected to end the year at around US$900 million, as some payment milestones

for the commitments are expected to spill over to the following year.

Recent Developments:

On October 25, 2019, the Board of Directors through its Executive Committee approved the acquisition of

77% equity interest in Electronic Commerce Payments (“EC Pay”) Inc., equivalent to 49,280,000 shares,

for P1.54 billion and the signing of the relevant definitive agreements. The ECPay platform will enable

small business owners to offer more products and services which in turn will stimulate the e-commerce

industry and the digital economy. It will also future-proof Globe’s distribution network, bringing the

company a step closer to its vision of a digitally-enabled Philippines

Lastly, the Board of Directors approved in its meeting today, the declaration of the fourth quarter 2019 cash

dividend of P22.75 per common share to shareholders on record as of November 20, 2019 payable on

December 6, 2019. The fourth quarter common cash dividend payment total is about P3.0 billion.

Globe Telecom Inc. Press Release 3Q 2019 Page 3 of 3

For questions, please contact:

Juan Carlo C. Puno Jose Mari S. Fajardo

Financial Planning and Analysis Investor Relations

Email: jcpuno@globe.com.ph Email: ir@globe.com.ph

(632) 7797-4307

About Globe

Globe is a leading full-service telecommunications company in the Philippines and publicly listed in the

PSE with the stock symbol GLO. The company serves the telecommunications and technology needs of

consumers and businesses across an entire suite of products and services including mobile, fixed,

broadband, data connectivity, internet and managed services. It has major interests in financial technology,

digital marketing solutions, venture capital funding for startups, entertainment, and virtual healthcare. Its

principals are Ayala Corporation and Singtel, acknowledged industry leaders in the country and in the

region.

It is listed on the Philippine Stock Exchange under the ticker symbol GLO and had a market capitalization

of US$4.7 billion as of the end of September 2019.

For more information, visit www.globe.com.ph. Follow @enjoyglobe on Facebook, Twitter, Instagram and

YouTube.