Globe Telecom board OKs cash dividend following strong 1H performance

Globe Telecom said its board has approved a cash dividend of P33.50 per common share following encouraging financial performance results for the first half of the year.

The dividend is payable to shareholders on record as of August 22. Payment date has been set on September 13.

The brings total cash dividend payments this year to P67/share totaling P8.9 billion, representing 86% of the company’s 2012 core net income of P10.3 billion, a 2% rise from a year earlier. In February this year, the company’s board approved its first semi-annual cash dividend payment of about P4.4 billion.

The leading telecommunications company also said its board also approved a change in the frequency of the cash dividend distribution from semi-annual to quarterly beginning in the first quarter of 2014. The quarterly cash dividends will continue to be based on the policy of distributing 75% to 90% of prior year’s core net income.

               

The amended frequency in the payouts will provide the company with better cash planning and liquidity management and at the same time ensure a more consistent dividend distribution to the shareholders.

Last month, Globe Telecom was recognized by the regional publication Alpha Southeast Asia Magazine as one of the Philippine companies with the most consistent dividend policy on their 3^rd annual Southeast Asia Institutional Investor Corporate Awards. In June, Globe Telecom was also cited by FinanceAsia Magazine’s annual poll of Best Managed Companies for its commitment to a strong dividend policy. Globe was cited by both publications for the same categories last year.

The company sustained its strong performance in the first half of the year, reporting consolidated service revenues of PHP44.5 billion, up 9% from a year earlier. The topline growth was broad-based with the mobile, broadband and fixed line data businesses growing by 8%, 25% and 12%, respectively from a year earlier.