{"id":327976,"date":"2024-05-17T11:54:55","date_gmt":"2024-05-17T03:54:55","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327976"},"modified":"2024-05-17T11:54:57","modified_gmt":"2024-05-17T03:54:57","slug":"stock-in-focus-globe-telecom-glo-17-may-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-globe-telecom-glo-17-may-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Globe Telecom (GLO) – 17 May 2024 by AP Securities"},"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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>17 May 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2,181.43<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Given GLO\u2019s respectable financial performance for the quarter, we therefore continue to maintain a BUY rating on the stock at consensus Target Price of P2,181.43.<\/p>\n\n\n\n

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

Earnings on par with expectations<\/h3>\n\n\n\n

GLO kicked off the year with first quarter earnings of P5.8-Billion, broadly in-line with expectations at 28.6% of analysts\u2019 forecasts. Core income was driven by YoY growth in mobile data revenues alongside a much more tempered progression in operating expenses. The weak, albeit stabilizing, fixed wireless segment however, remained a blemish in GLO\u2019s track record, thereby preventing the company from reaching full outperformance.<\/p>\n\n\n\n

Mobile Data remains GLO\u2019s biggest muscle<\/h3>\n\n\n\n

Mobile data segment revenues on their own would progress at a rate of 10.0% to P23.8-Billion, faster than the broader mobile business. For the quarter, total data usage would come in at 1,610Pb, marking a 19.1% improvement compared to the prior year despite total subscribers (58.77-Million) only being 70% of what they were previously. <\/p>\n\n\n\n

This would signify that average data consumption per subscriber was likely on an upward trajectory. This helped drive the continued uptrend in ARPUs that we have been seeing since the end of the SIM registration, as higher quality subscribers, especially on the prepaid side, were more amenable to spending on higher yielding mobile plans. As such, ARPUs from all three brands (Postpaid, Prepaid, TM) would rise by an average of 44.1% YoY. Nevertheless, seasonality effects came into play on a QoQ basis, as we note that ARPUs were down by 2.1% on average, something which management chalks up to subscribers spending more during the holidays.<\/p>\n\n\n\n

Nevertheless, we also noticed some uptick in postpaid churn to 1.60% from 4Q 2023\u2019s 1.50%, which translated to a slight 0.7% drop in postpaid subscribers. The combination of these factors were likely the reason why mobile data revenues were down 0.1% QoQ. All in all, total mobile revenues came in at P29.13-Billion, up 8.0% YoY, with declines in the legacy SMS and Voice segments partially offsetting the solid mobile data performance.<\/p>\n\n\n\n

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