Globe Telecom said that its board has approved a cash dividend of P33.50 each 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. Globe’s total cash dividend payments this year has reached P67 each share totaling P8.9 billion, representing 86 percent of the company’s 2012 core net income of P10.3 billion, a 2-percent increase 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 that 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 percent to 90 percent 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 was recognized by the regional publication Alpha Southeast Asia Magazine as having the most consistent dividend policy among Philippine firms.
In June, Globe was also cited by FinanceAsia Magazine’s annual poll of Best Managed Companies for its commitment to a strong dividend policy.
The company sustained its strong performance in the first half of the year, reporting consolidated service revenues of P44.5 billion, up 9 percent from a year earlier.
The topline growth was broad-based with the mobile, broadband and fixed-line data businesses growing by 8 percent, 25 percent and 12 percent, respectively, from a year earlier.