{"id":324604,"date":"2023-08-24T00:33:42","date_gmt":"2023-08-23T16:33:42","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324604"},"modified":"2023-08-24T00:33:44","modified_gmt":"2023-08-23T16:33:44","slug":"stock-in-focus-globe-telecom-glo-24-aug-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-globe-telecom-glo-24-aug-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Globe Telecom (GLO) – 24 Aug 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GLO<\/td><\/tr>
Company Name<\/strong><\/td>Globe Telecom<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>24 Aug 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2,240.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We reiterate our BUY rating on GLO with a lower Target Price of P2,240, indicating an upside of +17.28%. Dividends in the mid-single digit are attractive.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Analysis and Opinion<\/h2>\n\n\n\n

Globe Telecom, Inc. (GLO)’s Core Net Income (NI) in 2Q 2023 is down -18.64% year-on-year (y\/y) and -6.36% quarter-on-quarter (q\/q) to P4.81 billion. These figures bring YTD core net income down – 9.77% y\/y to P9.94 billion. Total service revenues are up +1.75% y\/y to P40.42 billion in 2Q 2023 as mobile based revenues grew +2.11% y\/y to P27.73 billion.<\/p>\n\n\n\n

GLO saw traffic data surged under mobile data on a surge in streaming and user generated content. Voice and SMS however declined by -13% and -10% y\/y respectively as users continue the shift towards VoIP programs and internet-based messaging apps.<\/p>\n\n\n\n

Total SIM users stand at 53.7mn post SIM registration, representing 99% of its total revenue generating subscriber base. Registered users represent 62% of the company\u2019s subscriber base recorded last December 2022. GFiber, GLO\u2019s prepaid offering has launched last July 20. As to the performance of the said product, no data has been released by management as the product is still at its infancy. Despite being a lower cost product, margins from the prepaid service would not be too different from postpaid.<\/p>\n\n\n\n

Mynt\u2019s GCash sees average transaction growing 1.5x y\/y, GLO\u2019s earnings from Mynt jump by +112% y\/y to P567 million in 2Q 2023. GLO currently owns 36% of Mynt. Mynt\u2019s contribution to GLO\u2019s NIBT is at 6.12% for the quarter. <\/p>\n\n\n\n

Capex is projected to moderately decline for the succeeding years, targeting a CAPEX spend of P71.5 billion in 2023 and P55 billion in 2024.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Check how many brokers recommend this stock<\/h2>\n\n\n\n
\n
All Stock Rankings<\/a><\/blockquote>