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Globe Telecom board approves cash dividend for shareholders

August 8, 2014

ENP Newswire - 08 August 2014

Release date- 07082014 - Globe Telecom said its board approved last August 5, 2014 a cash dividend of P18.75 per common share for the third quarter.

The dividend is payable to shareholders on record as of August 19, while payment date has been set on September 4.

The cash dividend represents an annualized dividend yield of approximately 4.3% based on a share price of P1,735. 'Our dividend yield remains relatively competitive as the average dividend yield of firms included in the PSE index is only about 2% while government five and seven-year benchmark rates are at 3% and 4%, respectively. This also reflects the strength of the company's ability to sustain cash flow generation as well as our commitment to sustainable and competitive dividend distribution policy,' Globe Chief Finance Officer Albert De Larrazabal said.

He added that based on Globe closing price of P1,735 as of July 31, year-to-date share price appreciation is about 5.8%. Coupled with the 4.3% dividend yield, the year-to-date total shareholder return is about 10%.

Globe reported a core net profit of P7.6 billion in the first half of the year, an 18% jump from P6.4 billion a year earlier, underpinned by strong performance of its mobile, broadband and fixed line data services. Service revenues in the first half of the year totaled P47.7 billion, up 7% from P44.5 billion a year earlier.

Recently, Globe received a citation from Finance Asia, a leading financial publication in the region, for its commitment to a strong dividend policy. The citation was based on a poll conducted to determine Asia's top companies. The survey involved votes from investors and analysts across the region.

The company was also cited as one of the top companies in Asia by institutional investment publication Alpha Southeast Asia. Globe Telecom was specifically cited for having the most consistent dividend policy.

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Source: ENP Newswire

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