Author Topic: STOCK MARKET PICK REVIEW : GLO GLOBE Updates  (Read 57 times)

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« on: November 22, 2017, 09:44:52 AM »

GLO is one of the two major telecommunications compnay in the Philippines. Globe operates under two major segments - wireless and fixed line. Under the wireless segment, the company has two brands, namely Globe and Touch Mobile. Meanwhile, the fixed line segment of GLO provides broadband internet connections to houses and offices nationwide.

Competitive environment less intense Competition in the telcom industries has become less intense over the past quarters and is expected to remain stable in the next quarters. ARPUs for both telcos has started to stabilize and no new price disruptive promos has been released in the market. Additionally,
subisidy costs and marketing expenses has been on a continuous downtrend, signalling the shift in focus to profitability from previously grabbing market share. Fixed line segment to drive growth in near term GLO’s fixed line segment has shown significant growth over the past few quarters. Moving forward, we expect growth of the fixed line segment to remain strong primarily due to the strong demand for fast internet connections in homes and offices. The company targets to pass through 2.0Mil homes by 2020 from only 400,000 currently as only around 5.0Mil homes currently have fast internet connections. Additionally, GLO up-sells their services to their current customer base by offering them higher speed allocation or bundled plans (subscriptions to Netflix, NBA Live, HOOQ, etc.). This effectively increases the ARPU and helps grow the segment’s revenues faster. Increasing share of data to help business turnaround GLO’s data revenue during 1Q17 already passed through the half way point and now accounts for more than half of its total service revenues. With data now accounting for more than half of total revenues, the drag from legacy businesses should be much less. Although GLO’s revenues have been growing consistently, the risk of revenues falling has diminished significantly.
« Last Edit: November 22, 2017, 02:44:33 PM by RichPoorDad »
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« on: November 22, 2017, 09:44:52 AM »

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