I.

Industry Overview

A. Identification/definition of Industry

Communications have a vital part in a success of an institution, organization or even a country. There has been an
overwhelming need to communicate with each other, which stimulated the massive growth of the communications
industry. The innovations and improvement in communications gave way to economic growth due to the
convergence and connectivity it brought to the country and the whole world.

Telecommunications is defined as any process which enables a telecommunications entity to relay and receive
voice, data, electronic messages, written or printed matter, fixed or moving pictures, words, music or visible or
audible signals or any control signals or any design and for any purpose by wire, radio or other electromagnetic,
spectral, optical or technological means. Telecommunications industry deals with the activities and services
of electronic systems for transmitting messages through cables, telephone, radio or television.

Two major factors responsible for the growth of telecommunications industry are use of modern technology and
market competition. One of the products of modern technologies is optical fibers, which are being used as a medium
of data transmission instead of using coaxial or twisted pair cables. Optical fibers can carry a high volume of data
and are easier to maintain and install. Use of communication satellites make this telecommunications industry a
booming industry.

Since the use of mobile network has a crucial role behind the growth of an improved telecommunications industry,
leading companies showed their great interest to, and did, invest in telecommunications industry.

Throughout the world, telecom industry are being controlled by private companies instead of government
monopolies. Traditional telecom technologies are also being replaced by modern wireless technologies, specifically
in case of mobile services. One of the major objectives of telecom industry is to enhance the quality and speed of
Internet technology.

These days, telecom industry is more concerned with texts and images (Internet technologies), rather than voice
(telephone service). Most of the research works are going on Internet accessibility, specifically on data applications
and broadband services. The other major division of telecom industry is mobile network sector, where lots of
innovative research works are going on. Previously the traditional telephone calls used to earn the maximum
revenues, but these days mobile service replaced traditional telephone services.

Telecom industry is a vast and diversified industry and needs a huge capital to invest. That is why the competitors of
this industry should be such that they can meet that demand. From the investor's point of view, it can be said that
they should be well aware of cash flow in this industry.

In this paper, the students decided to choose the listed company Globe Telecom Inc., a public company, which
provides telecommunications services. The Company operates mobile, fixed line and broadband networks providing
communications services to individual customers, small and medium-sized businesses, and corporate and enterprise
clients. It operates through mobile communications services and wireline communications services segments. The
mobile communications services segment consists of digital cellular telecommunications services that allow
subscribers to make and receive local domestic long distance and international long distance calls international
roaming calls mobile data or Internet services and other value added services in any place within the coverage areas.
The wireline communications services segment consists of fixed line telecommunications services which offer
subscribers local domestic long distance and international long distance voice services in addition to broadband and
fixed mobile Internet services and a range of value added services.

B. Origin of Industry

Globe Telecom today is one of the countrys dominant telecommunications company with strong brand equity, a
portfolio of products and services that best suit the Filipino lifestyle. Going back to 1928 Globe Telecom started as
Dollar radio, a private wireless radio communications station of the Robert Dollar Co. and later renamed Globe
Wireless Limited (GWL). Globe is also heir to Philippine Press Wireless, Inc. (PREWI), founded to advocate

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independence in the Commonwealth era, and Clavecilla Radio System (CRS). A merger between GWL, PREWI,
and Mackay Radio Telegraph established Globe-Mackay Cable and Radio Corporation (GMCR) in 1930 while
Ayala Co. entered in 1974 through a 60% stock ownership. In the 1990s, GMCR and CRS merged to form GMCR,
Inc., later renamed Globe Telecom.

Globe Telecom's common shares are listed in the Philippine Stock Exchange under the ticker symbol GLO. As of
June 30, 2015, Globe Telecom has 132,740,216 outstanding common shares. On August 11, 1975, Globe Telecom,
Inc. (as Globe Mackay Cable and Radio Corporation or GMCR) listed its shares in the Philippine Stock Exchange
(PSE) and became the first telecommunications company in the Philippines to do so.

In 2000: Class A and Class B common shares were declassified into a single class of common shares; Reverse stock
split changed par value of common shares from P1 per share to P50 per share. Creation of a new class of preferred
shares and increase of authorized capital stock from P5 billion consisting of 100 million single class of common
shares at par value of P50 per share to P11.25 billion consisting of 200 million common shares at par value of P50
per share and 250 million preferred shares at par value of P5 per share.

Entered a share swap transaction to acquire Isla Communications Co., Inc. (Islacom) by issuing 158,515,021
preferred shares of Globe at par value of P5 per share to Asiacom in exchange for 1.08 billion common shares of
Islacom, and issuing 28,830,860 common shares of Globe at par value of P50 per share to DeTeAsia Holding GmbH
(DeTeAsia), a wholly-owned subsidiary of Deutsche Telekom AG, in exchange for 720 million of Islacom common
shares.

In July, Globe Telecom Holdings, Inc. (GTHI), a special purpose vehicle 32.67% owned each by Globe and AC and
33% by Singtel, filed with the Philippine SEC a registration statement for the offering of up to 12 million Philippine
Depositary Receipts (PDRs). The PDRs were backed by Globe Telecom's common shares as underlying security.

In September, the PSE approved the application of Globe Telecom to list an additional 12 million common shares
(post declassification and post reverse stock split) as underlying shares for the PDRs to be issued by GTHI and the
application to list up to 29,623,662 PDRs.

In 2001: In March, the BOD approved the issuance of new 16 million common shares in one or more offerings
(other than rights issues) or private placements.

In May, AC, Singtel, and DeTeAsia pledged equity infusion of USD155 million to Islacom with the equity funding
provided to Globe as a pass-through equity for Globe to invest in Islacom to fund the latter's capital and operating
requirements. The USD155 million was recorded as Deposits on Subscription, which were applied to the conversion
of 10,273,534 warrants and the balance to the subscription of an additional 8,855,476 common shares issued to AC,
Singtel and DeTeAsia.

In 2002: Globe declared a 25% stock dividend to all common stockholders of record as of April 30, 2002. PDR
holders who exercised their PDRs on or after the ex-date April 25, 2002 (3 working days prior the record date) were
also entitled to receive the stock dividend in the proportion of one and one-quarter (1.25) common shares for every
one (1) PDR.

As of December, a total of 12,369, 892 PDRs have been exercised. In December also, GTHI, having completed and
concluded its only business activity, filed with the SEC a request for the revocation of its permit to sell PDRs.
In 2003:
In October 2003, DeTeAsia sold its 24.8% equity ownership in Globe Telecom to Ayala Corporation (10.4 million
common shares), Singtel (15.6 million common shares) and Globe Telecom, Inc. (12 million common shares).

In 2005: On February 1, 2005, the BOD approved an offer to purchase one share for every fifteen shares (1:15) of
the outstanding common stock of Globe Telecom from all stockholders of record as of February 10, 2005 at P950.00
per share. The approval allowed Globe Telecom to purchase up to 9,326,924 shares representing 6.67% of Globe
Telecom's outstanding common shares. Each shareholder is entitled to tender a proportionate number of share at the
1:15 ratio for purchase by Globe Telecom upon and subject to the terms and conditions of the tender offer. Globe
Telecom also filed with the SEC the tender offer report with a copy of the letter to the shareholders, the terms and

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conditions of the tender offer report with a copy of the letter to the shareholders, the terms and conditions of the
tender offer and the tender form. Globe Telecom commenced the tender offer on February 3,2005 and ended on
March 3, 2005.

On March 15, 2005, Globe Telecom acquired 8,064,094 shares at a total cost of P7,675.66 million, including
incidental costs.

On April 4, 2005, Globe Telecom's stockholders approved the cancellation of the 20.06 million treasury shares
consisting of the 12.00 million shares acquired from DeTeAsia in 2003 and the 8.06 million shares acquired during
the share buyback, and the amendments of the articles of incorporation of Globe Telecom to reduce accordingly the
authorized capital stock of the corporation from P11,250.00 million to P10,246.72 million. On April 29,2005, Globe
Telecom applied for the retirement and cancellation of the existing treasury shares with the SEC, which the latter
approved on October 28, 2005. Accordingly, Globe Telecom cancelled the existing treasury shares at cost. The
difference between par value and cost of treasury shares was charged to "Additional paid in capital" and "Retained
Earnings" accounts amounting to P5,179.35 million and P9,685.80 million respectively.

In 2008: On June 27, 2008, Ayala Corporation announced the sale to Singtel of 3.8 million common shares of Globe
Telecom at P1,201 per share.

In 2014: On August 8, 2014, Globe received the approval of the Securities and Exchange Commission to offer non-
voting perpetual preferred shares with the aggregate issue size of P7.0 Billion with an oversubscription option up to
P3.0 Billion. The offering was fully subscribed as of August 15, 2014 and the Preferred Shares was listed in the
Philippine Stock Exchange (with ticker symbol of GLOPP) last August 22, 2014 for the full amount of Php 10
Billion.

VISION:

Happiest customers, employees and shareholders.

MISSION:

We create a wonderful world for people, businesses and the nation.

Our mission is to inspire and enrich lives through communications by way of our vision of having the happiest
customers.

Through our renewed commitment to "enrich lives through ease and relevance," our goal is to enrich everyday
communications by simplifying and removing obstacles in communication technology so that we bring our
customers closer to what matters to them most.

OUR CORE VALUES:

We put our customers first.
Our people make the difference.
We act with integrity.
We care like an owner.
We keep things simple.
To us, it's be fast or be last.

TAGLINE
Abot mo ang mundo. Creating a Wonderful World

Cultures and Values:

These values are the anchor of their corporate existence:
Customer Commitment - a steadfast pledge to provide only the best to the customer

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 Excellence - the relentless pursuit of outstanding performance
Integrity- a faithful adherence to the highest ethical standards
Primacy and Worth of the Individual - respect for every employee as a unique individual, a professional in
his own right, and with his own sense of dignity and self-worth
Teamwork - the collective drive to achieve the companys vision and mission and uphold the companys
values
Commitment to Society and the Environment - a responsibility to uplift the quality of peoples lives and
protect the environment

C. Location of Industry

The company has over 150 stores built nationwide and its principal executive offices are located at The Globe
Tower, 32nd Street corner 7th Avenue, Bonifacio Global City, Taguig, Metropolitan Manila, Philippines. The tables
only focuses on North, Central and South Greater Manila Area.

D. Globalization Trends

Internet adoption has been increasingly seen as one of the key drivers in driving social and economic growth,
particularly for developing countries. According to a Deloitte study in 20141 , Internet access can promote long-term
productivity, better health, and improved literacy. The World Bank estimates that a 10% increase in broadband
penetration results in a 1.38% increase in a countrys GDP. Companies around the world have begun to take notice.

In August 2013, Facebook launched Internet.org, an initiative bringing together technology leaders, nonprofits and
local communities to connect the two thirds of the world that doesnt have internet access. At the same time, mobile
carriers in emerging markets have started to realize the large role that they can play in driving this adoption. Globe
Telecom, a leading telecommunications provider in the Philippines, has committed to bringing connectivity to over
100 million Filipinos, and has strived to be the leading mobile provider for their customers Internet-driven digital
lifestyle

E. Regulatory Factors

The National Telecommunications Commission (NTC) is the agency that exercises jurisdiction over the supervision,
adjudication and control over all telecommunications services. Although it is an independent regulatory body, the
NTC remains under the administrative supervision of the Department of Transportation and Communication
(DOTC) as an attached agency. However, in terms of its quasi-judicial functions, the decisions of the NTC can be
appealed only to the Supreme Court. According to RA 7925, it is the responsibility of the NTC to Foster fair and
efficient market conduct, through, but not limited to, the protection of telecommunications entities from unfair trade
practices of other carriers. [Art. III Sec. 5d]

I. I Players in the Industry

A. Size of firm in the industry

Globe Telecom, Inc. is a major provider of telecommunications services in the Philippines, supported by over 5,900
employees and over 855,000 retailers, distributors, suppliers, and business partners nationwide. The Company
operates one of the largest and most technologically-advanced mobile, fixed line and broadband networks in the
country, providing reliable, superior communications services to individual customers, small and medium-sized
businesses, and corporate and enterprise clients. Globe currently has about 38.5 million mobile subscribers, over
2,000,000 broadband customers, and over 594,000 million landline subscribers.

Globe is one of the largest and most profitable companies in the country, and has been consistently recognized both
locally and internationally for its corporate governance practices. It is listed on the Philippine Stock Exchange under

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the ticker symbol GLO and had a market capitalization of US$4.9 billion as of the end of December 2013. The
Companys principal shareholders are Ayala Corporation and Singapore Telecom, both industry leaders in their
respective countries. Aside from providing financial support, this partnership has created various synergies and has
enabled the sharing of best practices in the areas of purchasing, technical operations, and marketing, among others.
The Ayala Corporation-Singapore Telecom International (STI) partnership started in 1993 that shared a common
vision to evolve a pure data service provider into a full-service telecommunications company with pervasive
national and global presence. The partnership gave SingTel a 40% ownership (maximum allowed by Philippine law)
and gave Globe Telecom the capital and expertise to grow in the promising Philippine telecommunication
environment wherein they were one of the first two companies who were granted a license under Executive Order
109.

Globe's main competitor in the fixed-line telephone market is PLDT. In the mobile telephony market, its main
competitors are Smart Communications and Talk N' Text, which is owned by PLDT, and Sun Cellular, which is
owned by Digitel.

Globe Telecom was distinguished between other Telecommunications Operator because of their excellence in
Quality of Service (a single circuit is designed or conditioned to provide, e.g. voice grade or program grade is called
the quality of service), High Grade of Service (the probability of a call in a circuit group being blocked or delayed
for more than a specified interval, expressed as a vulgar fraction or decimal fraction) and being No.1 in Innovation.
These advantages made them the first choice provider of almost all the companies and subscribers that craved for
good service. However, Globe Telecom started out as the wireless leader who only focused on high end market
particular in the Metro Cities of the country (NCR, CEBU, DAVAO) yet almost ignoring and setting aside the mass
market of low-middle and low income consumers which composes a big chunk of the countrys population.

In the past years, their competitor (Smart and Sun) has flooded the market with affordable pricing schemes and
promos that changed customers perception in availing services. Filipino (especially the mass) doesnt look much in
terms of quality but rather to the price and special offers that they could get.

The tactics of Smart Communications in getting the mass market and changed in trend brought by Sun cellular made
Globe Telecom to step down as the No.1 Mobile operator. Globe Telecom should find a way in order to cope up with
the robust market competition in order to maximize profit (from existing and new subscribers) through innovative
solutions and promos while still maintaining its brand equity to sustain customer loyalty and retention on their High-
end market (Platinum and Corporate accounts) and ABC market.

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B. Organizational Structure

Figure 1.1 Organizational Structure of Globe Telecom Inc.

I.II Other Industry Characteristics

A. Value creation methods and costs and Market

1. Mobile Business

Globe provides digital mobile communication services nationwide using a fully digital network based on the Global
System for Mobile Communication (GSM) technology. It provides voice, data and value-added services to its
mobile subscribers through three major brands: Globe Postpaid, Globe Prepaid and TM.

Globe Postpaid includes all postpaid plans such as regular G-Plans and consumable G-Flex Plans, Load Allowance
Plans, Load Tipid Plans and Platinum Plans (for the high-end market). Globe Prepaid and TM are the prepaid
brands of Globe. Globe Prepaid is focused on the mainstream market while TM caters to the value-conscious
segment of the market. Each brand is positioned at different market segments to address the needs of the subscribers
by offering affordable innovative products and services.

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a. Mobile Voice

Globes voice services include local, national and international long distance call services. It has one of the most
extensive local calling options designed for multiple calling profiles. In addition to its standard, pay-per-use rates,
subscribers can choose from bulk and unlimited voice offerings for all-day or off-peak use, and in several
denominations to suit different budgets.

b. Mobile Data and Value-Added Services

Globes data services include local and international SMS offerings, mobile browsing and content downloads. Globe
also offers various bucket and unlimited SMS packages to cater to the different needs and lifestyles of its postpaid
and prepaid subscribers. Additionally, Globe subscribers can send and receive Multimedia Messaging Service
(MMS) pictures and video, or do local and international 3G video calling. Globes mobile browsing services allow
subscribers to access the internet using their internet capable handsets, devices or laptops with USB modems. Data
access can be made using various technologies including LTE, 4G HSPA+, 3G with HSDPA, EDGE and GPRS.
Browsing subscribers also have multiple charging options available with Globes Flexible Mobile Internet Browsing
rates which allow subscribers to choose between time or usage based rates. They can also choose between hourly,
daily or monthly browsing plans. The Company offers a full range of downloadable content covering multiple
topics including news, information, and entertainment through its web portal. Subscribers can purchase or download
music, movie pictures and wallpapers, games, mobile advertising, applications or watch clips of popular TV shows
and documentaries as well as participate in interactive TV, do mobile chat, and play games, among others.

2. Fixed Line and Broadband Business

Globe offers a full range of fixed line communications services, wired and wireless broadband access, and end-to-
end connectivity solutions customized for consumers, SMEs (Small & Medium Enterprises), large corporations and
businesses.

a. Fixed Line Voice

Globes fixed line voice services include local, national and international long distance calling services in postpaid
and prepaid packages through its Globelines brand. Additionally, postpaid fixed line voice consumers enjoy free
unlimited dial-up internet from their Globelines subscriptions. Low-MSF (monthly service fee) fixed line voice
services bundled with internet plans are available nationwide and can be customized with value-added services
including multi-calling, call waiting and forwarding, special numbers and voice mail. For corporate and enterprise
customers, Globe offers voice solutions that include regular and premium conferencing, enhanced voice mail, IP-
PBX solutions and domestic or international toll free services.

b. Fixed Line Data

Fixed line data services include end-to-end data solutions customized according to the needs of businesses. Globes
product offerings include international and domestic leased line services, wholesale and corporate internet access,
data center services and other connectivity solutions tailored to the needs of specific industries. Other fixed line data
services include premium-grade access solutions combining voice, broadband and video offerings designed to
address specific connectivity requirements. These include Broadband Internet Zones (BIZ) for broadband-to-room
internet access for hotels, and Internet Exchange (GiX) services for bandwidth-on-demand access packages based on
average usage.

c. Broadband

Globe offers wired, fixed wireless, and fully mobile internet-on-the-go services across various technologies and
connectivity speeds for its residential and business customers. Tattoo@Home consists of wired or DSL broadband
packages bundled with voice, or broadband data-only services which are available at download speeds ranging from
1 Mbps up to 15 Mbps. In selected areas where DSL is not yet available, Globe offers Tattoo WiMAX, a fixed
wireless broadband service using its WiMAX network. Meanwhile, for consumers who require a fully mobile,
internet-on-the-go broadband connection, Tattoo Onthe- Go allows subscribers to access the internet using LTE, 4G

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HSPA+, 3G with HSDPA, EDGE, GPRS or Wi-Fi at various hotspots nationwide using a plug-and-play USB
modem. This service is available in both postpaid and prepaid packages. In addition, consumers in selected urban
areas who require faster connections have the option to subscribe to Tattoo Torque broadband plans using leading
edge GPON (Gigabit Passive Optical Network) technology with speeds of up to 100 Mbps. In September 2012, the
Company officially launched its Long-Term Evolution (LTE) broadband service with the Tattoo Black Postpaid
Plans. The nomadic broadband plans are equipped with an LTE dongle and LTE superstick that deliver browsing
speeds of up to 42 Mbps and come with personalized customer handling services such as a dedicated hotline, a
relationship manager, and many other perks. In 2013, Tattoo kicked off the year with lower price propositions for its
4G product suite. Tattoo 4G Flash was made available for only P995 with surfing speeds of up to 7.2 Mbps. Also,
Tattoo At-Home now offers free unlimited calls to Globe/TM in addition to landline and internet service in every
Tattoo@Home Broadband Bundle.

B. Inputs/suppliers

Globe works with both local and foreign suppliers and contractors. Equipment and technology required to render
telecommunications services are mainly sourced from foreign countries. Its principal suppliers, among others, are as
follows:

The Companys suppliers of mobile equipment include Nokia Solutions and Networks (Finland); Ericsson Radio
Systems AB (Sweden), Alcatel-Lucent (France), and Huawei Technologies Co., Ltd. (China). For transmission and
IP equipment, Company has partnered with NEC (Japan), Alcatel-Lucent (France), ECI Telecom, Ltd. (Israel), Aviat
Networks (USA), Cisco (USA). For the Companys network modernization program, Huawei was the selected as the
primary partner given its technical expertise and strong track record of success in international markets. Huawei has
likewise committed to establish a Joint Innovation Center (JIC) that would bring the latest technological
developments and help further the Companys service innovation initiatives all focused in providing relevant and
customizable services for our various customer segments.

For fixed line and broadband, Globes principal equipment suppliers include Fujitsu Ltd. (Japan), Alcatel-Lucent
Technologies (France), NEC (Japan), AT&T Global (US), British Telecom (UK), Huawei Technologies Co., Ltd.
(China), ZTE Corporation (China). Singapore Telecom (Singapore), and Tellabs (USA/Singapore).

For the Companys IT modernization program, Globe has selected Amdocs, the leading provider of customer
experience systems and services, to improve and upgrade Globes Business Support Systems (BSS) and enterprise
data warehouse. As part of the transformation program, Amdocs is tasked to manage and consolidate all of Globes
legacy systems onto a single Business Support System (BSS) platform. This will enable the Company to manage its
customer relationships better across all it various product offerings, simplify business processes and shorten the time
to deliver bundled and more innovative products to the market.

C. Human Resources

Globe Telecom has implemented a Code of Conduct, Conflict of Interests and Whistleblower Policy. Formal policies
on Unethical, Corrupt and Other Prohibited Practices were put in effect to guard against unbecoming activities and
serve as a guide to work performance, dealings with employees, customers and suppliers, and managing assets,
records and information including the proper reporting, handling of complaints and fraudulent reports and
whistleblowers. These policies cover employees, management and members of the Board. These documents are the
key to the balance of control and governance at Globe Telecom.

D. R&D and innovation

Globe Telecom demonstrates its dedication to its customers and to the industry with the undertaking of a momentous
company transformation plan. While punctuated by the network modernization and IT transformation project, the
objective is to transform as an enterprise covering all bases highlighted in the Globe Circle of Happiness. The
transformation plan is designed to improve Globe Telecom in totality through modernization of the networks
technological capacities, replacement of current hardware and systems with more advanced technology and the
restructuring of business processes and procedures. The enhancement of the Globe Way through the Circle of

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Happiness will revolutionize customer-care by prioritizing its customers needs while focusing on Globe Telecoms
mission in achieving superior customer experience. Cost transformation will look into lowering operating costs to
make the business more efficient. Once completed, it will reaffirm Globe Telecoms status as a top service provider
in this highly competitive market.

To reform its business processes, Globe Telecom will simultaneously initiate an IT transformation project,
streamlining its business procedures to prepare the Company to changing market and business demands.

E. Finance

The Board of Directors establishes the vision, mission and strategic direction of the Company, hence, is the supreme
authority in matters of governance. They monitor the overall corporate performance and protect the long-term
interests of the various stakeholders ensuring transparency, accountability and fairness. Ensuring the adequacy of
internal control mechanisms, reliability of financial reporting and compliance with applicable laws and regulations
are also integrated as part of overseeing the responsibility for risk management. Furthermore, certain matters
including the approval of corporate operating and capital budgets, major acquisitions and disposals of assets, major
investments and changes in authority and approval limits are reserved specifically for the Board's disposition.

Globes pioneering initiative in mobile microfinance under BPI Globe BanKO Inc. (BanKO) is one such business
model that advocates financial inclusion. This utilizes Globe Telecoms mobile money platform and BPIs banking
infrastructure to deliver affordable financial services to those who are currently not served by the formal banking
system.

II. Stock's Price for three months

Figure 2.1 Stocks Price of Globe Telecoms

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 Figure 2.2 Comparison of Globe Telecoms (blue) and PSEi (orange)

Globe Telecoms stocks price at the beginning of the month of May was 2,182php and the stocks price was
relatively high compared to the prior months, and it increased from 2,182php to 2,550php. On July, Globes stocks
price was decreased from 2,510php to 2388php. Three months ago, specifically from the 15 th day of the month of
May 2015 up to the first half of June 2015, the stocks price of Globe Telecom was moving against the PSEi wherein
as the percentage of Globe increases, the percentage of PSEi decreases. But on the succeeding period up to the 8 th
day of August 2015, It was moving along with the PSEi, whereas the percentage of Globe increases, the PSEi also
increases. The stocks price of Globe Telecoms is moving more vigorously than the market for the last three months
with an average discrepancy of almost twice the percentage of the PSEi.

III. Companys Annual Sales and Total Assets

PHP (In thousands) 2014 2013 2012

Total Assets 179, 506, 952 159, 078, 933 148, 011, 779

Annual Sales 103, 235, 713 95, 140, 985 86, 446 149

Table 3.1
Globe Telecom, Inc. has increased its net worth as it increased its total assets and annual sales. Based on table 1, it is
shown that Globe Telecom has enhanced its company having a constant improvements from 2012 to 2014. This
enhancement may point out that this company has satisfied the needs of their consumers as they show dedication to
its customers and to the industry with the undertaking of a momentous company transformation plan. Also, the
increase of their sales may indicate that they provided an efficient strategy that. In conclusion, Globe Telecom is
considered a large company as it remained to be the leading player in the telecommunications industry.

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IV. Trends of Sales and Profit over the last three years

Table 3.1 1 Income Statement of Globe Telecom Inc. for 3 years. (In millions of Pesos)

2014 Net income after tax

13372
103326
= 12.95%

Globe Telecom is 12.95% profitable in the year 2014. This means that it has the capacity to make a profit from
income earned after deducting all costs and expenses related to earning the income.

Percentage change

2013
95,141- 86,446 (100%)
86,446
= 8,695 (100%)
86,446
= 10.06

2014
103,236 95,141 (100%)
95,141
= 8,095 (100%)

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 95,141
= 8.51

As we look to the figures of Globes total revenue for 3 consecutive years it is evident that there is an improvement
in its sales. And as we analyze and computed for the percentage change, 8.51 is a good indication that the sales of
2014 maintains its positive change but as we compare to the 2013 there is a decrease in its percentage that the
company should look into and the reason of such. Attaining the percentage change of 10.06 in year 2013 sets as the
benchmark of the sales. The trend is an increasing in a decreasing manner, increasing in such a way that the number
sales increase but as compared to the previous years performance of the increase in 2013 (10.06) is much higher
than 2014 (8.51).

V. Analysts' say

When it comes to deciding things, we should have deliberate and thoughtful decisions in order for us to come up at
least with its best results and the best solution to this is to study about it most especially in handling our
assets. One of the main forms of investment that is used is investing in the stocks. But before anything else
let us define first what really stocks is. Based on the definition of investopedia.com, it is basically defined as
the claim or share in the ownership of a companys assets and earnings. So investing in stocks is not just the
buying and selling of stocks per se that we usually think about of. As what also Paul Mladjenovic mentioned
and listed as the first item in his The Ten Most Important Points about Stock Investing is that You're not
buying a stock; you're buying a company. In understanding this statement it is in reality the truth, once a
person decided to invest his money to the stocks the value of the stocks acquired is based on the chosen
companys standing and again getting back to its basic definition having a claim signifies for being part of
the company. To summarize as primarily needed in getting into the world of stocks are enumerated as the:

The Ten Most Important Points about Stock Investing by Paul Mladjenovic
1. You're not buying a stock; you're buying a company.
2. The primary reason you invest in a stock is because the company is making a profit and you want to participate
in its long-term success.
3. If you buy a stock when the company isn't making a profit, you're not investing you're speculating.
4. A stock (or stocks in general) should never be 100 percent of your assets.
5. In some cases (such as a severe bear market), stocks aren't a good investment at all.
6. A stock's price is dependent on the company, which in turn is dependent on its environment, which includes its
customer base, its industry, the general economy, and the political climate.
7. Your common sense and logic can be just as important in choosing a good stock as the advice of any
investment expert.
8. Always have well-reasoned answers to questions such as "Why are you investing in stocks?" and "Why are you
investing in a particular stock?"
9. If you have no idea about the prospects of a company (and sometimes even if you think you do), use stop-loss
orders.
10. Even if your philosophy is to buy and hold for the long term, continue to monitor your stocks and consider
selling them if they're not appreciating or if general economic conditions have changed.
There are also other things to know more about investing in stocks which the internet sites and reference books give
us such information because it is always good to be in the actual situation but it is always great to have the
knowledge of what youre into knowing that investing in the stocks is more effective if it stays for a longer period of
time (minimum of 5yrs for best result or depends) as it fluctuates from time to time. Thats why Matthew
Krantz and Robert R. Johnson said that Investors and potential investors look to security analysts to provide them
with professional, unbiased opinions on the investment potential of a stock. After all, the analyst is assumed to have
the knowledge and skills to investigate and form a recommendation generally buy, sell, or hold on a

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stock's future potential. Understanding the rules of this game really is a need in order to know what move is
intended to do so.

At the end of all the information given by those analysts the key point there that have given emphasis is reading
(understanding) and continuous reading as it may changes its status from time to time without the control of
anyone.

VI. Stocks Selling Price

As of August 12, 2015, the stocks of Globe Telecom closed at a selling price of P2,640. It opened at a price of
P2,536 with a day high of P2,680 and a day low of P2,536. Based on the movement of stock price on the chart
above, Globe Telecoms stock price is moving in an upward trend. There are small uptrends and large uptrends that
can be found in between the trading ranges or breakouts and for the reason that it is combined with a breakout, this
will lead to a change in the movement of trends from upward to downward and vice versa.

VII. Stock Price Changes

Stock prices always change because of supply and demand. The stock price goes up if the people buy stocks more
than selling them. And the stock price goes down if the people sell stocks more than buying them. So, the Globe
Telecoms stock price is moving in an upward trend because for the past days the people buy stocks more than
selling stocks. As of August 12, 2015, the stocks of Globe Telecom closed at a selling price of P2,640. It opened at a
price of P2,536 with a day high of P2,680 and a day low of P2,536 which means the lowest price of the stocks
during the day is P2,536 and the highest price of the stocks during the day is P2,680. Using day high and day low we
can identify the gaps or sudden jumps up or down in a stock price with no trading in between. By determining the
gaps of stock price of Globe Telecom it is said there are small uptrend and large uptrend.

VIII. Strategy

The prominent strategy that Globe adopts is relying on strategic partnerships with outside suppliers and with
companies making tie-in products. Globe already partnered with different companies for them to give people various
products that would inspire and enrich the lives of people, through communications and by way of Globe's vision of
having the happiest customers. To have happy customers, Globe will enrich everyday communications by
simplifying and removing obstacles in communication technology so that they will bring customers closer to what
matters to them most.

Through Globes partnership with major banks and remittance companies, and using Globes pioneering
GCash platform, subscribers can perform mobile banking and mobile commerce transactions. Globe

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 subscribers can complete international and domestic remittance transactions, pay fees, utility bills and
income taxes, avail of micro-finance transactions, donate to charitable institutions, and buy Globe prepaid
load credits using its GCashactivated SIM.
As part of its commitment to the Filipino digital lifestyle, Globe Telecom threw its support to the local
mobile gaming industry and hosted the first grand eyeball of Clash of Clans gamers, players and enthusiasts
in the Philippines. A unique collaboration with the local online community of Clash of Clans PH, the event
gave guests a chance to meet, interact, and play together with their fellow "Clashers" for the first time.
In August 2013, Facebook launched Internet.org, an initiative bringing together technology leaders,
nonprofits and local communities to connect the two thirds of the world that doesnt have internet access. At
the same time, mobile carriers in emerging markets have started to realize the large role that they can play in
driving this adoption. Globe Telecom, a leading telecommunications provider in the Philippines, has
committed to bringing connectivity to over 100 million Filipinos, and has strived to be the leading mobile
provider for their customers Internet-driven digital lifestyle
The country's number 1 mobile brand Globe Telecom continues to lead the drive in mobile data usage in the
country with its recent partnership with popular online video websites YouTube and Dailymotion to further
boost video content consumption and accessibility of the sites on mobile devices with affordable online
video bundles.
Spotify has also teamed up with Globe Telecom as its exclusive telecommunications partner in the
Philippines to offer all 38 million Globe Postpaid, Globe Prepaid and Tattoo-on-the-go Prepaid subscribers
free access to Spotify through the telcos new data plan, GoSURF. Globe, the leader in innovative
breakthrough offers, in partnering with Spotify strengthens its vision to provide an enriched online
experience and access to free online content.
Viber said it is showing its thanks to some 18 million Viber users who have helped it become the top chat
app in the Philippines. "From January 13 to February 13, all Globe mobile and Tattoo subscribers can
#ShareYourVibe and use Viber to communicate with friends and loved ones, free of charge. You heard it
right. No purchase required, no promo required, no daily registration required, completely free," it said.
Viber CEO Talmon Marco said this will allow them to "reach out to more Filipinos and enabling them to
connect freely, without incurring any mobile data charges.

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REFERENCES

Globe Telecom, Inc. (2013). 2013 Consolidated Financial Statement of Globe Telecom. Retrieved from:
https://www.globe.com.ph/documents/7122541/2a98462b-1d49-4e33-9775-b56480b2b2ab

Globe Telecom, Inc. (2014). 2014 Consolidated Annual Financial Statement.. Retrieved from:
http://www.globe.com.ph/documents/50301/17252559/GLO_2014-Consolidated-AFS.pdf

Paul Mladjenovic From Stock Investing For Dummies, 4th Edition. Stock Investing For Dummies. Retrived from:
http://www.dummies.com/how-to/content/stock-investing-for-dummies-cheat-sheet.html

Matthew Krantz and Robert R. Johnson from Investment Banking For Dummies. Investment Banking Analyst
Rules.
Retrieved from: http://www.dummies.com/how-to/content/investment-banking-analyst-rules.html

Dummies.com. Investing in Stocks by Term. Retrieved from: http://www.dummies.com/how-to/content/investing-

in-stocks-by-term.html

Globe. (2015). Globe Telecom hosts first-ever Clash of Clans grand eyeball. Retrieved from:
https://www.globe.com.ph/press-room/clash-of-clans-grand-eyeball

Globe. (2015). Globe Telecom to offer Filipinos new mobile video experience with YouTube and Dailymotion
Video Bundle. Retrieved from: https://www.globe.com.ph/press-room/youtube-and-dailymotion-video-
bundle

Norouzi, T. (2011 January 28). GLOBE TELECOM INC. Retrieved from:

https://www.scribd.com/doc/94630011/Globe-Telecommuication

Anonymous. (2014 April 8). Spotify Partners with Globe to Bring An Unbeatable Music Experience to Filipinos.
Retrieved from: http://news.yahoo.com/spotify-partners-globe-bring-unbeatable-music-experience-
filipinos-224956504.html

GMA. ( 2015 January 12). Globe offers free Viber, Facebook access starting Jan. 13. Retrieved from:
http://www.gmanetwork.com/news/story/402306/scitech/technology/globe-offers-free-viber-facebook-
access-starting-jan-13

Globe. (31 December 2013). Globe Telecom, Inc, Sec Form 17-A. Retrived from:
http://www.globe.com.ph/documents/50301/57d7774e-b037-4160-8c85-291f43d845ee

Ortega, C. (2011 March 08). Globe. Abot mo ang Mundo. Retrieved from:
https://www.scribd.com/doc/50269793/globe

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