Globe sustains momentum for 1st quarter of 2011, records growth in revenues and subscriber base

Globe Telecom sustained momentum for the first quarter of the year, after posting growth in service revenues and subscriber base on the back of innovative product offers that focused on relevance, personalization and customization.

Consolidated service revenues reached a new all-time high of P16.5 billion, an 8% increase from last year’s P15.2 billion, representing the highest quarterly service revenues in the company’s history on a normalized basis.

 The growth momentum in mobile business was sustained, resulting in service revenues of P13.1 billion, up 4% than last year’s P12.5 billion which was normalized to exclude the one-time, upward adjustment of P526 million recorded in the further quarter of 2010 representing prepaid load credits that have either expired or have already been used up. The company’s mobile subscriber base surged to 27.3 million, a 14% increase from last year’s 23.9 million and 3% higher than the previous quarter.

 The company maintained its leadership in the mobile postpaid segment with double-digit growth numbers in revenues and subscriber base. Globe Postpaid achieved a new record high of over 120,000 gross acquisitions as of first quarter of the year, a 52% increase from last year, bringing total subscriber base to over 1.1 million, up 30% year-on-year and 8% quarter-on-quarter. Postpaid revenues stand at P3.6 billion, 10% higher than last year.

Globe capitalized on the success of its first-in-the market personalized postpaid plans by reinforcing its service offering with the ALL NEW My Super Plan, the most flexible and customizable postpaid plan in the market today that allows customers to select and design their postpaid plans based on their choice of either an All-Unlimited Plan or All-Consumable Plan, pick monthly add-on unlimited services, choice of freebies, and the latest handsets and device bundles for free or at a discount to new postpaid subscriptions. Globe also pioneered another breakthrough offering for its postpaid subscribers, My Super Txt All, the first-ever unlimited text service to all networks, which can also be a monthly add-on service for the ALL NEW My Super Plan.

 On its prepaid business, Globe ended the first quarter with a subscriber base of 26.2 million, up 14% compared to last year and 3% against last quarter. Total prepaid revenues were P9.4 billion, up 2% from last year. For its prepaid subscribers, Globe enhanced its first-in-the-market, bucket, all-network text offering Super All Txt 20 by providing 250 all-network text messages from just 200 messages during its launch in August last year. The breakthrough service remains affordable as it stays at the same price of P20 per day. The company’s unlimited, intra-network call and text offer SuperUnli continued to be a main growth driver, enabling subscribers to stay connected with their friends and loved ones all they want at a very affordable deal of P25 a day.

 Fixed line and broadband revenues also surpassed last year’s numbers by 26% with P3.4 billion in revenues. The broadband business similarly sustained its growth with a subscriber base of 1.2 million as of end-March 2011, a 40% increase from last year and 10% from the previous quarter. Globe Broadband Tattoo, the company’s nomadic broadband service, continued to drive the strong results, as well as Globe WiMAX, the fixed wireless service brand for at-home use. Wireless broadband subscribers now account for 78% of the total broadband subscriber base, up from 72% a year ago.

 “We are proud to have sustained the momentum we started to achieve during the second half of 2010. Our offers have started to gain traction, and it shows with the encouraging results we posted for the first quarter of 2011. This will provide us the inspiration to aggressively compete by introducing more compelling and relevant products and services, strengthening our network infrastructure, platforms and systems, and continuing our thrust on superior customer experience,” said Ernest L. Cu, President and CEO of Globe Telecom.

 Globe posted a net income after tax of P3 billion for the first quarter of the year, representing a seven-quarter high for the company, with a 1% increase from last year and 30% higher from the previous quarter.

 Shown in photo during the financial results briefing are key executives from Globe led by (from left) Head for Corporate and Legal Services Group Atty. Froilan Castelo, President and CEO Ernest Cu, Senior Advisor for Consumer Business Peter Bithos and Chief Legal Counsel Atty. Rodolfo Salalima. 

Filed under: Globe Telecom News, Cebu, Economy, Globe, Globe performance, Globe Telecom, Mindanao, Philippines, Prworks, telecom, telecom industry, Visayas

Global plane, train builder chooses Cebu

Bombardier Transportation, the global giant that builds planes and trains, has chosen to open its finance center in Cebu, the progressive resort city in central Philippines, to service the multinational company’s international operations.

Cebu Gov. Gwen Garcia and acting Cebu City Mayor Mike Rama led local officials, representatives from the business community, Cebu-based diplomats, and members of the Cebu media in gracing the grand inauguration of the Bombardier Finance Center at the TGU building in Cebu City’s upscale Asiatown IT Park on April 27, 2009.

The search began in August 2008 months after top Bombardier officials mandated the formation of a finance shared service center to reduce cost and increase the quality of financial information.

A team scouted several countries in Europe and Asia. They considered, deliberated and evaluated various qualified places. And Cebu stood out as the best place to combine work and leisure.

“Best tourist attractions, presence of people with good English skills, cost-efficiency and political stability are some of the major factors that led the team to choose the Queen City of the South to be Bombardier’ Transportation’s Global finance service center,” said Kennerth Lundgren, head of the financial services project, change management, ERP and Process Improvement.

An initial 25 Filipinos are now being trained to serve as the finance center staff. Search for competent accountants and finance wizards would continue to complete the planned 150 workforce. After two months of training, they will be brought to the United Kingdom for work shadowing. By October 2009, all of Bombardier’s finance operations will be transferred to Cebu.

Doris Mongaya of PRWorks Inc. pointed out that the Bombardier decision came about even before the onset of the global economic crisis that hit First World countries badly. “This means Cebu has what it takes to compete for the relocation of vital facilities of global giants that now need to streamline operations to increase efficiency.”

PRWorks Inc. is the sister company of the newly-formed Konseptworks that won the event management contract for the grand inauguration of the Bombardier finance center. A result of Mongaya’s partnership with Bong Abela of Concepts and More, the new company focuses on corporate events and marketing for international and national companies looking at the vast market in Cebu and Southern Philippines.

PRWorks Inc., in particular, takes pride in its excellent access to local governments, the local business community, and local media that has made it the favored local partner of Asia’s event and PR giant Teamasia, Globe Telecom, Sanofi-Aventis and SPC Power Corp.

Filed under: Events, News, Business, Cebu, Economy, global crisis, Philippines, planes, Prworks, trains, Visayas

Cebu ranks 8th for investors

By Linette C. Ramos

CEBU CITY — Foreign investment experts have again noticed Cebu City’s potential for business and ranked it as eighth of the Top 10 Asian Cities of the Future, in a list by the Finance Direct Investment (fDi) magazine of the Financial Times Group.

Only two other Philippine cities, Quezon City and Davao City, made it to the top 10, ranking seventh and 10th place, respectively.

Cebu City also ranked fourth in the list of 10 most cost-effective cities, seventh in the best quality of life category and second in development and promotion, next only to Singapore.

Continue reading ‘Cebu ranks 8th for investors’

Filed under: News, Business, Cebu, Cebu City, Commerce, Economy, Philippines, Small and Medium Enterprises, Top 10 Asian Cities of the Future, Visayas

RP renews membership to AFECA

AFTER MORE THAN 10 years of absence, the Philippine’s meetings, incentives, conventions and exhibitions (MICE) industry has revived its participation and membership to the Asian Federation of Exhibition and Convention Association (AFECA).AFECA is an organization of MICE industry leaders in Asia. It was organized to give Asia a voice in the MICE global industry. The Philippines is a founding-member of AFECA.

“They (AFECA members) looked for us because the Philippines is a founding-member and we were gone. Just this year, we are coming back,” said Marissa Nallana, chairperson of the Philippine Association for Conventions, Exhibit Organizers and Suppliers (PACEO).

Ms. Nallana recently attended the AFECA annual general meeting and the 2007 Asian MICE leaders forum held last September 25-27 in Taipei, Taiwan. She said the country’s revival to AFECA, through PACEO, is a joint effort of the organization and the Department of Tourism.

Filed under: News, AFECA, Business, Cebu, Cebu International Convention Center, CICC, Commerce, conventions, Economy, exhibitions, incentives, meetings, Philippines

Cebu Motorshow Benefits Vis-Min Entrepreneurs

Transport entrepreneurs in the Visayas and Mindanao are among many exhibitors who will benefit from the 8th Motorshow Cebu International at the Cebu International Convention Center (CICC) on October 16to 21, 2007.

Haydee Kwan, Motorshow Philippines International, Inc. Director, that is spearheading the only event of its kind and magnitude outside Metro Manila, revealed this

Over the years, small and medium-scale transport entrepreneurs in the countryside have survived and grown on their own merit. Now, we want to make sure that their industry and ingenuity will get the attention that they deserve, Kwan said.

Located away from major manufacturers of automotive and motorcycle accessories and parts, provincial Filipino entrepreneurs are known for their ability to produce alternative transport products often made from scrap materials.

In lieu of accessories and parts that are difficult to access in remote areas, these ingenious innovations often amaze even the more established manufacturers of auto and cycle parts, bodies and engines.

The Motorshow Cebu International will provide a good exposure for these small companies who fill a special niche in a rapidly expanding transport market. Throughout the six-day event, meet-and-match possibilities between buyers and sellers are endless, Kwan explained.

Filed under: Case Studies, Auto, Business, Cars, Cebu, Cebu International Convention Center, CICC, Commerce, Economy, Motoring, Motorshow, Philippines, Visayas

Launching a web resource for entrepreneurs in Cebu

The decision to re-launch SME.com.ph in Cebu, in central Philippines, shows PR savvy for Planters Development Bank marketing strategi

sts in reaching out to small and medium entrepreneurs in the Visayas and Mindanao.

The web site provides entrepreneurs with a wealth of resources and other support services online. “SME.com.ph connects you and your business to the world market the quick, easy and affordable way,” says bank officials.

Aiming to reach out to the growing number of SMEs in southern Philippines, Plantersbank demonstrate its commitment to be a relevant player in the development of the countryside.

Located some 500 kilometers south of Manila, Cebu is considered an engine of economic growth in the south largely fueled by small and medium enterprises in the export, import, IT and service industries.

Filed under: Case Studies, Business, Cebu, Commerce, Economy, Mindanao, Philippines, Plantersbank, Small and Medium Enterprises, SMEs, Visayas

Naga: At the Crossroads

The following speech was delivered by Naga Mayor Valdemar Chiong during the inauguration of the country’s first ever SME Industrial Park:

Naga: At the Crossroads

For years, Enan – my brother the late mayor Ferdinand Chiong – and I dreamed of a progressive and sustainable industrial city of Naga.

Maybe Enan thought he would be more effective up there. Everything seems to be falling in place.

Right after my election as mayor – I based the successful campaign on the 15-point strategic platform that Naganhons now refer to as Vision and Leadership 2020 or VAL 2020 – and I immediately proceeded to Manila to push hard for the first priority as mayor-elect: that of making Naga a city.

With the enthusiasm Naganhons expressed in welcoming the “photo-finish” Senate approval, come the plebiscite this August, I am looking forward to a huge turnout and an overwhelming YES.

Today, July 11, 2007, we are officially opening the country’s first SME Industrial Park here in Naga.

Filed under: Views, , Cebu, Commerce, Economy, Naga, Naga Citihood, Philippines, Small and Medium Enterprises, SME Industrial Park, SMEs, VAL 2020, Visayas, Vision and Leadership 2020

SME Industrial Park Launching Photo Documentation

Filed under: Events, Business, Cebu, Commerce, Economy, Naga, Philippines, Plantersbank, Small and Medium Enterprises, SME Industrial Park, SMEs, Visayas