Globe board OKs cash dividend for shareholders

Posted at 02/12/2014 11:27 AM | Updated as of 02/13/2014 12:03 PM

MANILA, Philippines - Globe Telecom's boad has approved a cash dividend of P37.50 per common share for the first semester, after the telco posted a 13% jump in its core net profit for 2013.

The dividend is payable to shareholders on record as of February 26 while payment date has been set on March 20.

"On an annualized basis, the dividend represents a 12% improvement from last year’s distribution. It is equivalent to 86% of 2013 core net income, consistent with our dividend policy of issuing between 75%-90% of prior year’s core net income,” Globe President and CEO Ernest Cu said in a statement.

Based on current share price, the company’s dividend yield of 4.6% remains competitive against yields of government securities and other listed companies.

Starting in the second half of 2014, Cu said Globe will distribute quarterly dividend payments to enable better cash management and liquidity planning and provide a more consistent dividend distribution to shareholders.

On Tuesday, Globe reported a core net profit of P11.6 billion for 2013, the highest core net over the last 4 years as revenues reached a fresh record of P90.5 billion, underpinned by strong performance of its mobile, broadband and fixed line data services.