Globe Telecom, Inc. (GLO) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the live webcast of Globe Telecom's 2023 Annual Stockholders Meeting. We welcome our Chairman, Mr. Jaime Augusto Zobel de Ayala.

Good morning. The meeting will now please come to order. It is my pleasure to welcome our stockholders to the 2023 Annual Stockholders Meeting of Globe Telecom. Each year, we look forward to this opportunity to engage with all of you. Pursuant to our bylaws, and after giving our stockholders the opportunity to request for a physical meeting, this meeting will be conducted in a fully virtual format. Our stockholders may exercise their right to vote through the proxy form submitted by April 13, 2023, or through electronic voting available until the end of this meeting. Questions are encouraged and may be sent to [email protected]. Joining me in this meeting as presenters are Ernest Cu, our President and CEO; Mr. Solomon M. Hermosura, our Corporate Secretary; Jose Mari S. Fajardo, our Senior Director of Investor Relations; Mr. Rex Mendoza, an Independent Director and the Chairman of the Nomination and Governance Committee and the Compensation and Remuneration Committee of our Board; and Cirilo P. Noel, an Independent Director and the Chairman of the Audit and Related Party Transactions Committee of our Board. The other members of and nominees to our Board and our other offices and representatives of Isla Lipana & Co./ PwC Philippines, our independent auditor, are joining the meeting through the live webcast. Before we proceed, let's establish that this meeting is duly convened. Mr. Secretary, have the stockholders of the corporation been duly notified of this meeting?

Yes, Mr. Chairman. On March 28, 2023, we distributed to our stockholders of record as of March 10, 2023, the notice and the definitive information statement for this Annual Stockholders Meeting by posting on our company's website, by disclosure to the Philippine Stock Exchange electronic disclosure form, and by e-mail to all stockholders who [indiscernible] e-mail addresses on record. In addition, Mr. Chairman, the notice was published on March 27 and 28, 2023, in the Manila Bulletin and the BusinessWorld. Accordingly, our stockholders have been duly notified of this meeting in accordance with our bylaws and applicable rules of the Securities and Exchange Commission.

Thank you. Mr. Hermosura. Do we have a quorum at this meeting?

There is a quorum for this meeting, Mr. Chairman. Present in this meeting are stockholders owning at least 279,130,943 shares, representing 92.25% of the 302,575,565 total outstanding voting shares. They're present through the appointment of the Chair as proxy, or participating in the live webcast of this call or by electronic voting. The breakdown of the stockholders present in terms of mode of attendance will be reflected in the minutes.

Thank you, Mr. Secretary. As we value our engagement with our stockholders, we encourage your active participation in this meeting through the various means to be discussed by our Corporate Secretary, Mr. Hermosura, as he shares the Rules of Conduct and Voting Procedures for this meeting.

Mr. Chairman, the Rules of Conduct and Procedures are set forth in the definitive information statement and in the explanation of agenda items, [ which is ] part of the notice of the Annual Stockholders' Meeting. Now please allow me to highlight the following points. First, our stockholders present through our live webcast will send their questions or comments to [email protected]. Second, Mr. Jose Mari Fajardo, our Senior Director for Investor Relations, will read the questions or comments received before 9:30 a.m. during the question-and-answer period, which will take place after other matters under Item 8 of the agenda. Management will reply to questions and comments not taken up during the meeting by e-mail. Third, as indicated in the ballot, there are 5 resolutions proposed for adoption by the stockholders in this meeting. Each proposed resolution will be shown on the screen as the same is being taken up. Fourth, stockholders would cast their votes on the proposed resolution and in the election of directors beginning March 30, 2023, until the end of this meeting through our voting in [ absentia and ] shareholder system. Fifth, and lastly, we have tabulated the votes cast as of April 13, 2023, after the end of the proxy validation and process. Those votes are from stockholders owning 279,098,397 voting shares, representing 99.99% of the total voting shares represented in this meeting and 92.24% of the total outstanding voting shares. I will be referring to this preliminary tabulation when I report the voting results of this meeting. The results of the final tabulation of votes, with full details of the [indiscernible] and abstentions, will be reflected in the minutes of this meeting. Thank you, Mr. Chairman.

Thank you. The next order of business is the approval of the minutes of the Annual Stockholders' Meeting held on April 26, 2022. An electronic copy is available on the website of the company. I'll now ask our secretary to present the proposed resolution and the voting results on this item.

Mr. Chairman, management is proposing the adoption of Resolution # S-01-2023 for the approval of the minutes of the annual meeting on April 26, 2022. The resolution is shown on the screen. On the voting results, Mr. Chairman, that shareholders owning 279,098,467 shares or 99.99% of the total voting shares represented in this meeting have voted in favor of the resolution. Therefore, Mr. Chairman, Resolution # S-01-2023 has been approved.

Thank you, Mr. Secretary. The next item on the agenda is the annual report, consisting of the message from the Chairman and the message from the President and Chief Executive Officer and an audio-visual presentation. My prerecorded message will now be shown. To our fellow shareholders, members of the Board of Directors and friends, good morning, and welcome to Globe Telecom's Annual Stockholders' Meeting. In 2022, the Philippines, once again, proved its resiliency as the overall economy returned to pre-pandemic levels. Business is reopened, the full capacities and economic activities went full steam ahead. Employees returned to work and students went back to schools. Tourism resumed as domestic and foreign travel restrictions were lifted, while foot traffic and public mobility returned to normal. We're hopeful that the country already seen the worst of the pandemic. As a result, the Philippine economy posted robust gross domestic product growth of 7.6% in 2022, surpassing the previous year's 5.7%. And employment rates for 2022 fell to 5.4% versus 7.8% in the prior year. The total number of unemployed declined to 2.7 million, lower than 3.7 million in 2021, with the labor force participation rate improving to 64.7% versus 63.4% in the prior year. Also, overseas remittances remain buoyant despite the adverse global economic environment as overseas Filipino workers send money to support families at home, reaching a record USD 32.5 billion, surpassing by 3.6%, the previous high of USD 31.4 billion set in 2021. This continued to support the country's consumption-driven economy. Looking back, the country's economic performance, particularly in the fourth quarter, was all the more remarkable given such headwinds, including inflation reaching a 14-year high of 5.8%; rising interest rates; a slackening global economy as China's economy remains sluggish; continued conflict in the Ukraine; and weakening of the Philippine peso versus the U.S. dollar. The prices of goods and services rose faster than wages in 2022, which eroded purchasing power in card consumption as households struggled with rising prices and interest rates. Coming into the first few months of 2023, as inflation and interest rates remain high, economic experts and analysts believe these factors will, again, take a toll on consumption in 2023 as households find their way around to make ends meet with an already squeezed family budget. Nevertheless, we're heartened by the new administration's vision that follows a track of sustainable and inclusive development where businesses thrive, intellectual property rights are protected, climate risks are mitigated and Filipinos are given equitable access to opportunities to reach their own aspirations. Globe, having the Philippines' most reliable mobile network, supports the administration's goal to digitalize government processes and provide universal connectivity across the country. As such, count on Globe to be an enduring partner towards attaining national goals, aimed at improving the lives of every Filipino. Against this backdrop, Globe sustained its record-breaking pace in 2022. Your company recorded all-time high revenues of PHP 158 billion, up 4% against the same period last year. Corporate data and mobile services, complemented by the continuous growth from non-telco services, consistent with our shift into becoming the Philippines' leading digital solutions platform, mainly drove the top line expansion as more Filipinos adopt the digital lifestyle. Total data revenues as a percentage of total consolidated service revenues increased to 81% from 80% last year. Imbued with the goal of providing a first-world network for our customers nationwide, Globe's capital expenditure for 2022 reached a new record of PHP 101.4 billion, surpassing by 9% the previous record set last year and represents 64% of gross service revenues and 128% of full year EBITDA. Majority, or 86% of CapEx, was allocated for data requirements to ensure that customers will have access to more relevant digital solutions and best-in-class connectivity wherever they are. Globe, with its strategic and purpose-led pivot from a traditional telecommunications company to a full-fledged tech enterprise, now offers a suite of innovative digital solutions through its portfolio companies in financial technology, health care, edu-tech, entertainment, adtech, e-commerce, manpower, information technology service, venture capital investment, and most recently, climate tech. GCash, the Philippines' #1 finance app and the only Philippine double unicorn valued that over $2 billion during its last capital raise in November 2021, sustained its market dominance as an e-wallet with over 5x more active users than the nearest e-wallet based on statistics from reputable third-party providers, data.ai. GCash likewise pioneered and scaled digital financial services across credit, savings, wealth and insurance products with a suite of products spanning revolving credit lines, cash loans and Buy Now, Pay Later, providing loans to more Filipinos who needed the most, backed by its proprietary credit score. Strengthening our commit to sustainability, Globe remains a signatory to the UN Global Compact and is committed to uphold its 10 principles on human rights, labor, environment and anticorruption. The company has also committed to support the task force on climate-related financial disclosures to increase transparency on climate governance, strategy, risk management and targets. As the first publicly listed company that committed to set science-based targets and an official participant in the Race to Zero, Globe partnered with South Pole, a climate action strategy expert in building our net-zero road map. We also partnered with Aon Global Risk Consultants and utilized the engagement with the Climate Service's, an S&P Global company, Climanomics platform in developing a climate scenario analysis, identifying the company's climate-related physical risks, transition risks and opportunity factors. We also invested in a sustainability software through DNV Synergi Life to automate the ESG data collection process, enhance analysis capabilities and report our progress against our targets. Globe recognizes that the fight against climate change will only be successful through collective action. Hence, we became a member of the Global Climate Action Fund, established by W-Foundation, a United Nation's Framework Convention on Climate Change partner that seeks to discover and support global climate action technologies and ideas to the numbers of the alliance. In terms of our ESG ratings, Globe maintained its A rating in the MSCI, B rating in CDP for environmental transparency and membership in the FTSE4Good Index for 7 straight years since 2016. The Financial Times has also recognized Globe as one of the climate leaders in Asia Pacific in 2022. As a result of its strong adherence to the pillars of corporate governance, ingrained in its corporate culture and ways of working, Globe CG standards and practices continue to be acknowledged by domestic and international award-giving bodies. Globe was recognized among the top 3 Philippine publicly listed companies, ASEAN Top 20 and ASEAN asset class in the Philippines at the ASEAN Corporate Governance Scorecard Award ceremony in December 2022. Globe was also the only telco that bagged the prestigious 5 Golden Arrow Award for corporate governance organized by the Philippines' Institute of Corporate Directors. The International Finance Awards also named Globe the Best Corporate Governance Company, Telecom Philippines 2022, through its publications issue in January 2023, with Globe as the only Philippine entity in telco in the roster of awardees. Globe also took home the first-ever United Nation's Sustainable Development Goal awards under the people category, hosted by the UN Global Compact Network Philippines for its holistic COVID response efforts. Staying true to our mission of generating sustained value for our shareholders, we also paid out PHP 14.4 billion in common share dividends. This represents about 68% of 2021 core net income, in line with our dividend policy of 60% to 75% of prior year's core net income. Globe is committed to a sustainable dividend policy in line with its earnings and cash flow generation. On behalf of the other Board members, I'd like to acknowledge the significant contributions of our outgoing directors: Mr. Allen Lew, Romeo Bernardo and Rex Mendoza and Madame Saw Phaik Hwa. Mr. Lew, in his return as a member of the Globe Board in 2021, served as co-Vice Chairman. Prior to that, Mr. Lew was first elected to the Globe Board back in 1995 and assumed the role of Vice Chairman in 1996 and 1997 and Co-Vice Chairman in 1998 and 1999. While Mr. Bernardo spent a total of 22 distinguished years as a Director, with Mr. Mendoza and Mrs. Saw serving on the Board for 9 and 8 years, respectively, as independent directors, with Mr. Mendoza being in the lead independent director role in the last 5 years. We wish them all success in all their future endeavors. In closing, I'm deeply proud of the way the Globe leadership team and the entire organization handled the many challenges in 2022 by uplifting lives through innovations that show care, compassionate and kindness. I also would like to thank our Board for its engagement and advice amidst another challenging year. Thank you again to all of you for joining us today. I now hand over the floor to our President and CEO, Mr. Ernest Cu, to deliver his report. Thank you.

In 2022, Globe made significant strides as a digital solutions platform. It is a year that saw recovery and expansion across the One Globe Group. We are seeing the fruits of our efforts in growing beyond telco, using our assets and unfair advantage towards being a technology company, or better known as a techco. We started with an earnest desire to uplift the lives of our customers by addressing their various pain points. We look for problems large enough to do business at scale and develop innovative technology-based solutions to address them. Today, we have successfully carved out our presence in fintech through GCash; health tech through KonsultaMD; adtech via Brave Connective; edu-tech with EdVenture and KodeGo; climate tech, e-commerce, manpower services, IT, media, entertainment and more. As One Globe Group, we are guided by our vision of seeing a Philippines where families' dreams come true, businesses flourish and the nation is admired. Our digital solution and innovation ecosystem aims to provide long-term impact for our country. While we pursued our telco-to-techco goal, our core connectivity business remained robust and dynamic across the business segments. We registered a remarkable business performance despite a challenging economic environment of high inflation, increased regulatory risks and intense competition. Globe posted a net income after tax of PHP 34.6 billion in 2022, a 46% increase year-on-year, while our consolidated EBITDA stood at PHP 79.1 billion. This is 6% higher than 2021, enabling an overall healthy EBITDA margin of 50%. As part of our efforts to monetize our passive infrastructure, we closed a PHP 91 billion deal through the sale and leaseback of our towers. This will significantly improve the overall health of Globe's balance sheet and provide sufficient flexibility to compete as well as further expand our digital ecosystem. Our mobile and home broadband customer base reached 86.7 million and 2.6 million, respectively. As a country, further increased its reliance on digital technologies, we expanded our network coverage and improved our infrastructure to meet the growing need for consistent and reliable #firstworldnetwork. We've built 1,702 new cell spaces and installed 2,267 new 5G cell sites nationwide. Our efforts to deliver network consistency and reliability were recognized by Ookla, naming Globe as the Philippines' most reliable mobile network, retaining our top position over 3 consecutive quarters. In cybersecurity, we spent $20 million to boost detection and elimination of scam and spam messages. This is a major pain point for our mobile customers. We were able to block 2.72 billion messages and blacklist over 35,000 numbers. We proactively run periodic vulnerability assessments and security threat detection to ensure our assets are secured and protected. Assisting the government in enabling safer online and Internet use, the SIM Registration Act took effect in December of 2022. This is expected to further reduce online scams and fraud. As we continue with our simplified SIM registration process this year, we are confident that we will continue to hold a substantial active core customer base at the end of the registration process, while also maintaining our gross service revenues. With a growing demand for better Internet service, Globe launched its TMBAyan Fiber WiFi, the first-of-its-kind with unlimited prepaid fiber. This product aims to make fiber Internet more affordable and accessible to the broad Filipino mass market. Likewise, we delivered business solutions for MSMEs, such as work anywhere and contact center as a service, alongside various ICT ecosystems to help enable their business success through digitalization. Globe Group's adtech and data arm, Brave Connective Holdings, Inc, consisting of AdSpark, DeepSea, Inquiro and m360, helped empower MSMEs with reliable data management tools, bringing them closer to their customers and helping them make data-driven decisions. GCash, on the other hand, is a life-enabling product for both businesses and consumers. GCash sustained its market leadership, growing to 76 million registered users, 5.8 million merchants and social sellers and 855 GLife merchant partners. GCash has also scaled up its services across credit, savings, wealth and insurance products. It has disbursed over PHP 57 billion of loans since inception across 2 million unique borrowers. Harnessing climate technology, Globe, through 917Ventures and Ayala Corporation, brought electric vehicle and battery swapping technology leader, Gogoro, to the Philippines. It seeks to reduce the use of fossil fuel within the logistics industry and in general, transportation. Our sustainability practice is anchored on our purpose of treating people right to do a globe of good. Globe is the first publicly listed Philippine company to commit to set science-based targets to achieve net-zero carbon emissions by 2050. We have intensified our green network strategy by using more renewable energy and energy-efficient technologies. We are committed to advocating digital access and enablement, taking care of our customers and employees and upholding good corporate governance and standards. Approaching 2030, which is the deadline for attaining global UN SDG targets, the Globe Group is striving to fulfill its sustainability commitments as it enables innovative and disruptive digital solutions to uplift Filipino lives every day. As One Globe Group, we will help shape our country's digital future together. [Presentation]

Thank you, Ernest, for your message. If I could now ask the secretary to present the proposed resolution on this item and the voting results.

Yes, Mr. Chairman, management is proposing the adoption of Resolution # S-02-2023 for the noting of the corporation's annual report and the approval of the consolidated audited financial statements of the corporation and its subsidiaries as of December 31, 2022, as audited by its external auditor, Isla Lipana & Co./ PwC Philippines. We are showing the resolution on the screen. I am pleased to report, Mr. Chairman, that the stockholders owning 279,098,467 shares or 92.24% of the total outstanding shares and 99.99% of the shares represented in this meeting have voted for the adoption of the resolution. Therefore, Mr. Chairman, Resolution S-02-2023 has been approved.

Thank you, Mr. Secretary. We now move to the next item in the agenda, the ratification and approval of all acts of our Board of Directors and officers since our Annual Stockholders' Meeting on April 26, 2022, until today. Mr. Hermosura will explain this matter and present the proposed resolution together with the voting results thereon.

Mr. Chairman, our Board of Directors and management seek ratification of all the acts and resolutions of the Board, Executive Committee and other Board committees exercising powers delegated by the Board, which were adopted from April 26, 2022, until today. These acts and resolutions are reflected in the minutes of the meeting and they include the election of directors and appointment of new officers, approval of contracts and agreements, projects and investments related -- treasury-related transactions and upsell resolution, covered by disclosures to the Securities and Exchange Commission, the Philippine Stock Exchange and applicable regulatory agencies. Stockholder certification is also [ swapped ] for all the acts of the corporation's officers in accordance with our bylaws and with the resolutions of the Board, the Executive Committee and other Board committees from April 26, 2022 to date. We are showing on the screen Resolution # S-03-2023. I am pleased to report that our stockholders owning 279,098,467 shares or 92.24% of the total outstanding shares and 99.99% of the shares represented in this meeting have voted for the adoption of Resolution # S-03-2023. Therefore, the resolution has been adopted.

Thank you, Mr. Secretary. The next order of business is the election of the 11 members of the Board of Directors for the ensuing year. Mr. Rex Maria Mendoza, Chairman of our Nomination and Governance Committee, will explain this item in this prerecorded message.

Globe Telecom, Inc. recognizes the importance of having a well-balanced and diverse Board that addresses the needs of the corporation, has the necessary expertise and experience and maintains its independence. With this in mind, the Nomination and Governance Committee of the Board, in accordance with our bylaws and manual of corporate governance, has ascertained that all of the following 11 duly nominated stockholders, including the nominees for independent directors, are qualified to serve as directors of the corporation for the ensuing term. Number one, Jaime Augusto Zobel de Ayala; two, Tan Mee Ling Aileen; three, Jaime Alfonso Antonio Zobel de Ayala; four, Ng Kuo Pin; five, Ernest L. Cu; six, Delfin L. Lazaro; seven, Cezar P. Consing; eight, Cirilo P. Noel; nine, Natividad N. Alejo; 10, Ramon L. Jocson; and 11, Antonio Jose U. Periquet, Jr. Cirilo P. Noel, Natividad N. Alejo, Ramon L. Jocson and Antonio Jose U. Periquet, Jr. were nominated as independent directors.

Thank you, Mr. Mendoza. Mr. Secretary, we could have the results of the election, please?

Yes, Mr. Chairman. Each of the 11 nominees for directors has garnered at least 278,702,742 votes. Given this, I certify that each of the nominees has received enough votes for election to the Board, and that Resolution # S-04-2023, shown on the screen, has been approved.

Thank you, Mr. Secretary. I'd like to take this opportunity to welcome Madam Aileen Tan and Navi Alejo and Antonio Periquet and Ramon Jocson to the Board. Welcome to all of you. I'm certain that your respective global experience and strong corporate leadership will contribute significantly to the governance and management of our company, which will in turn impact the lives of all our customers, shareholders and stakeholders, I'm sure, in a very positive way. Let me also use this moment to, once again, thank our outgoing directors, Madame Saw Phaik Hwa; and Mr. Allen Lew, Mr. Romeo Bernardo and Mr. Rex Mendoza. You have all helped Globe transform from being a telco to a techco, forging the path beyond the core business and into financial inclusion as well as digitalizing health, education and the like via the Globe Group. Thank you to all of you. The next item on the agenda is the election of the corporation's independent auditors. If I could request Mr. Cirilo P. Noel, Chairman of the Audit and Related Party Transactions Committee, to present his prerecorded message.

Mr. Chairman, in the performance of its oversight function, over Globe Telecom, Inc. independent auditors, the Audit Related Party Transactions Committee evaluated the performance of our present auditor, the firm of Isla Lipana & Co./ PwC Philippines, during the past year. And the committee was satisfied with their performance. The committee and the Board of Directors have thus agreed to endorse, per our stockholders' approval, the election of Isla Lipana & Co./ PwC Philippines as the corporation's independent auditors for the present fiscal year for an audit fee of PHP 16,970,000, exclusive of value-added tax. Thank you, Mr. Chairman.

Thank you, Vic. If I could now ask our secretary to present the proposed resolution on this item and the voting results.

Mr. Chairman, management is proposing the adoption of Resolution # S-05-2023 for the election of the company's independent auditors and the fixing of their remuneration. We are showing the resolution on the screen. I am pleased to report, Mr. Chairman, that the shareholders owing 279,098,467 shares or 99.99% of the total voting shares represented in this meeting have voted in favor of Resolution # S-05-2023. Therefore, the resolution is now approved.

Thank you, Mr. Secretary. Mr. Secretary, are there other matters that require consideration by the stockholders?

There is none, Mr. Chairman. But if I may just mention, we notified our stockholders that they may submit proposals for agenda items, but we did not receive any.

We will now address questions and comments...

Matters which require consideration by the stockholders. Very sorry Mr. Chairman but...

We will now address questions and comments from the stockholders. Our Senior Director for Investor Relations. Mr. Fajardo, will read aloud the questions and comments, together with the names of the stockholders who sent them. As mentioned by Mr. Hermosura earlier, management will reply by e-mail to questions and comments not taken up during the meeting.

Good morning, Mr. Chairman. We received the following questions from shareholders which were sent to the corporate secretary at globe.com.ph e-mail account for 9:30 a.m. The first question is from Ms. Maria Felice Daguno Lee. Can you discuss further any updates on Globe's network rollout and your CapEx for 2023?

Let me answer the question, Mr. Chairman. For 2022, Globe's CapEx reached $1.9 billion, which is the highest level for the company that it has ever spent in its mobile and fixed network to provide world-class Internet experience for Globe customers nationwide and is coming off the $1.8 billion that we spent in 2021. Majority, or 86%, was allocated for data requirements to ensure that customers will have access to more relevant digital solutions and best-in-class connectivity where they are. For 2023, Globe will invest an additional $1.3 billion in CapEx for our continued network expansion and enhancement to further boost the Internet quality and coverage in the Philippines. Our CapEx for this year is a reduction of over 30% from 2022 levels as we are shifting our focus in optimizing capital deployment and bringing our free cash flow to more sustainable levels.

Thank you, sir. The second question is from Ms. Jocelyn S. Mallari. Given your lower CapEx guidance for 2023 and 2024, because the proceeds from the towers sale, is there a possibility that the company will increase the dividend payout?

Let me take that as well. Globe's current dividend policy of paying out dividends equivalent to 60% to 75% of prior year's core net income gives our Board the flexibility to adjust the dividend payout on a quarterly basis depending on company performance and macroeconomic conditions. Given this policy, our dividend declarations for the balance of the year and for next year are still highly dependent on our performance over the next few quarters. But that being said, rest assured that the company is taking steps to make improvements to our operating cash flows and optimizing our CapEx spend to ensure that Globe delivers healthy returns to our shareholders. This is proof of our commitment to a sustainable dividend policy that is in line with our earnings and cash flow generation as well as commitment of delivering value to our shareholders.

Thank you, sir. The third question comes from Mr. Dominador T. Tamayo. Can you provide an early view on mobile and broadband competition this first quarter? And whether it supports your overall outlook for 2023?

The consumer space, especially for mobile, is highly penetrated across both segments, while home broadband's area of opportunity remains to be the prepaid market. Competitive pricing moves are expected to continue as our customers remain economically challenged due to inflation, particularly in the mass market segment. For now, it is still too early to tell if the current trend in competition will affect our overall revenue outlook for 2023. Just like everyone else, we are hoping that the overall economic environment improves for the rest of the year and results in higher incoming wages for our fellow Filipinos, particularly the mass market.

Thank you, again, sir. The fourth question comes from Ms. Joan Fabian M. Viado. Can you provide us an update on the SIM card registration? Is the correct number of SIM registrants in line or behind your expectations?

So far, approximately 46% of our total mobile customer base have registered, and the April 26 deadline is fast approaching. We believe that other telcos are also faced with the same circumstances. Despite our efforts to roll out registration assistance desk and intensified campaigns, the lack of government IDs as well as digital challenges, prevent us from getting more customers to register. We have petitioned the DICT for the extension of the SIM registration as turnout is low, being below the 50% number of the total subscriber base. I believe our position is supported by the NTC and other government agencies like the Department of Trade. We've also been urging the government to allow the use of alternative forms of ID, such as company IDs, school IDs and barangay certificates for those without valid IDs. Also, conditional registration must be allowed to let individuals use their telecommunication services while they obtain a valid ID within a reasonable period. The government should also allow the establishment of always-on government handled assisted registration services, manned by volunteer LGU workers complemented by ID issuance services, to expedite registration of more SIMs.

Thank you, sir. That was the last question received prior to the cut-off time, Mr. Chairman. We'll respond by e-mail to any questions and comments not taken up this meeting. I'd also like to add, Mr. Chairman, that link to the audio and video recording of this meeting will be posted on our website. Stockholders may raise an issue, clarification and concern about this meeting within 2 weeks from the posting of the link by sending an e-mail to [email protected]. Further, I'm pleased to announce that shareholders who attended the meeting and were successfully registered and verified, will receive a 1-month family plan subscription to KonsultaMD. Thank you, again, for joining us. Stay Safe.

Thank you very much, Jomari. That concludes this morning's proceedings. The meeting is hereby adjourned. The link to the audio and video recording of this meeting will be posted on our website. Stockholders may raise any issue, clarification and concern about this meeting within 2 weeks from the posting of the link by sending an e-mail to [email protected]. Thank you for joining us today. As we now emerge from the pandemic, we remain steadfast in our commitment to our stockholders and other stakeholders to create value through sustainable technology solutions. Together, we are partners as we move forward towards a complete recovery. Please continue to take care, and thank you, once again, for joining us.

Thank you for your participation. The link to the audio and video recording of this meeting will on our website. Stockholders may raise any issue, clarification and concern about this meeting within 2 weeks from the posting of the link by sending an e-mail to [email protected]. All who attended the meeting and were successfully registered and verified by the VIASH system, will receive a 1-month family plan subscription to KonsultaMD. Thank you again for joining us. Stay safe.