Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on Globe Telecom Inc.
Founded in 1934, Globe Telecom Inc. is the second-largest provider of telecommunications services in the Philippines.
The company has more than 61m mobile subscribers and also offers broadband network, fixed-line data and fixed-line voice services.
GLO’s business can be divided into three categories.
First, there’s its mobile business, which generates the greatest share of revenue. This segment comprises Globe Prepaid brand and Touch Mobile (TM), which is a cellular service brand of GLO. Its postpaid service is offered by the same two brands, making it a leader in this segment.
Its broadband segment, which offers both DSL and wireless (including LTE) formats. Its fixed-line data business offers internet service for both household and corporate users.
In the fixed-line voice service, the company has about 1 million subscribers, which generates a relatively small part of the company’s revenue.
GLO’s total subscriber base, as of the second quarter of 2016, was about 61 million. Its high capex for infrastructure modernization, such as making broadband internet more accessible, has great potential for excellent ROI, due to low (currently 35%) smartphone penetration in the Philippines.
Mr. Jaime Augusto Zobel de Ayala has served as a Director with Globe Telecom since 1989. He has been the Chairman and CEO of Ayala Corporation (which is the second largest shareholder of GLO) since 2006. In addition to Globe Telecom, he holds the chairmanship of Integrated Micro-Electronics and Bank of the Philippine Islands.
Ernest Cu arrived at the company as CEO in October 2008 and became a Director on the board in 2009 and was named CEO one year later. Since then, Mr. Cu has been passionately driving a sweeping transformation across the company, including modernizing its network and IT infrastructure, creating a strong collaborative and service-oriented culture, and product innovations in its mobile business.
In 2015, Mr. Cu was named Best CEO by Finance Asia for the second time. In 2014, Mr. Cu was honored as the Telecommunications Executive of the Year by the International Business Awards.
World Class Benchmarking
One reason these accolades flow annually to Mr. Cu is that GLO has continued to put up high marks. Profitable Growth has remained among the top 3 rankings since 2014.
This places GLO among the best 42 large telecom companies globally.
Profitability remained #3 in the latest filings, but growth has fallen to an average rank.
Profitability is driven by a strong Profit Margin, which has jumped from #7 in 2013 to #3 in 2016. Sales Growth has remained strong, but Margin Change has worsened since 2014.
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