2023 Globe Conso AFS

DocuSign Envelope ID: 66AEA4D2-21C7-47C8-9850-8F578974D2FE
COVER SHEET
P W 0 0 0 0 1 1 7 7
G L O B E T E L E C O M , I N C .
(Company's Full Name)
2 7 / F T H E G L O B E T O W E R
3 2 N D S T R E E T C O R N E R 7 T H A V E N U E
B O N I F A C I O G L O B A L C I T Y T A G U I G
(Business Address: No. Street City / Town / Province)
ROSEMARIE MANIEGO-EALA 7797-2000

Contact Person Company Telephone Number
1 2 3 1 A F S 0 4 2 4
Month Day FORM TYPE Month Day
Fiscal Year Annual Meeting
Secondary License Type, if Applicable
Dept. Requiring this Doc. Amended Articles Number/Section
Total Amount of Borrowings
Total No. Of Stockholders Domestic Foreign
To be accomplished by SEC Personnel concerned
File Number LCU
Document I.D.
Cashier
STAMPS
Remarks = pls. Use black ink for scanning purposes

SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT UNDER SECTION 17

OF THE SECURITIES REGULATIONS CODE (SRC)
AND SRC RULE 17(a)-1(b)(3) THEREUNDER
1. February 28, 2024

Date of Report (Date of earliest event reported)
2. 1177 3. 000-768-480-000
SEC Identification Number BIR Tax Identification Number
4. GLOBE TELECOM, INC.

Exact Name of registrant as specified in its charter
5. PHILIPPINES 6. (SEC Use Only)

Province, country or other jurisdiction of Industry Classification Code
incorporation
7. The Globe Tower, 32nd Street corner 7th Avenue, Bonifacio 1634
Global City, Taguig
Address of principal office Postal code
8. (02) 7797-2000
Registrant’s telephone number, including area code
9. N/A
Former name or former address, if changed since last report
10. Securities registered pursuant to Sections 4 and 8 of the SRC
Title of Each Class Number of Shares of Common Stock

Outstanding and Amount of Debt Outstanding
(as of December 31, 2023)
COMMON SHARES 144,228,604
TOTAL DEBT (in Millions of Pesos) 249,956
Indicate the item numbers reported herein : Please refer to attached
Re: Globe Telecom, Inc. and Subsidiaries FY 2023 Consolidated Financial

Statements
Pursuant to the requirements of the Securities Regulations Code, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GLOBE TELECOM, INC.

Registrant
Date : 28 February 2024
ROSEMARIE MANIEGO-EALA
Chief Finance Officer
28 February 2024
SECURITIES AND EXCHANGE COMMISSION

The SEC Headquarters, 7907 Makati Avenue
Barangay Bel-Air, Makati City 1227
Attention: Atty. Oliver O. Leonardo

Director, Markets and Securities Regulation Department
Atty. Rachel Esther J. Gumtang-Remalante

Director, Corporate Governance and Finance Department
PHILIPPINE STOCK EXCHANGE, INC.

5th Avenue corner 28th Street
Bonifacio Global City, Taguig City
Philippines 1634
Attention: Disclosure Department
Ladies and Gentlemen:
Attached is the audited consolidated financial statements of Globe Telecom, Inc. and its
subsidiaries, which comprise the consolidated statements of financial position as at December 31,
2023 and 2022, the consolidated statements of comprehensive income, consolidated statements
of changes in equity and consolidated statements of cash flows for the financial years ended
December 31, 2023, 2022, and 2021, and a summary of material accounting policies and other
explanatory information.
Thank you.
Very truly yours,
ROSEMARIE MANIEGO-EALA
Chief Finance Officer
Independent Auditor’s Report
To the Board of Directors and Shareholders of

Globe Telecom, Inc.
The Globe Tower, 32nd Street corner 7th Avenue
Report on the Audits of the Consolidated Financial Statements

Our Opinion
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of Globe Telecom, Inc. and its subsidiaries
(together, the “Group”) as at December 31, 2023 and 2022, and their consolidated financial
performance and their consolidated cash flows for each of the three years in the period ended
December 31, 2023, in accordance with Philippine Financial Reporting Standards (PFRS).
What we have audited
The consolidated financial statements of the Group comprise:
● the consolidated statements of financial position as at December 31, 2023 and 2022;
● the consolidated statements of total comprehensive income for each of the three years in the
period ended December 31, 2023;
● the consolidated statements of changes in equity for each of the three years in the period
ended December 31, 2023;
● the consolidated statements of cash flows for each of the three years in the period ended
December 31, 2023; and
● the notes to the consolidated financial statements, which include a summary of material
accounting policies.
Basis for Opinion
We conducted our audits in accordance with Philippine Standards on Auditing (PSA). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the Code of Ethics for Professional Accountants
in the Philippines (Code of Ethics), together with the ethical requirements that are relevant to our audit
of the consolidated financial statements in the Philippines, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the Code of Ethics.
Isla Lipana & Co., 29th Floor, AIA Tower, 8767 Paseo de Roxas, 1226 Makati City, Philippines
T: +63 (2) 8845 2728, www.pwc.com/ph
Isla Lipana & Co. is the Philippine member firm of the PwC network. PwC refers to the Philippine member firm, and may sometimes refer to the PwC network. Each
member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
Globe Telecom, Inc.
Page 2
Our Audit Approach
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated financial statements. In particular, we considered where
management made subjective judgments; for example, in respect of material accounting estimates
that involved making assumptions and considering future events that are inherently uncertain.
As in all of our audits, we also addressed the risk of management override of internal controls,
including among other matters, consideration of whether there was evidence of bias that represented
a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industry in which the Group operates.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter identified in our audit is revenue recognition.
How our audit addressed the

Key Audit Matter Key Audit Matter
Revenue recognition We addressed the matter by understanding the

Group’s revenue recognition policies in accordance
Refer to notes 2.13 and 32 to the with PFRS 15, Revenue from Contracts with
consolidated financial statements. Customers, and the related business processes and
information technology (IT) environment.
Revenue recognition has been identified as
a key audit matter primarily due to the We evaluated the design and tested the operating
significant volume of transactions processed effectiveness of automated and manual controls
through various systems which heavily relies surrounding revenue recognition. In particular, we
on automated processes and controls from tested controls from account activation to termination,
account activation, recording of usage, provisioning, call data capture, billing interface and
billing and ultimate revenue recognition. In revenue recording covering all assertions with respect
particular, the Group's revenue streams to revenue.
include a significant amount of postpaid
service revenues which are billed under We evaluated the designed and tested the operating
various cycles, hence, timing of revenue effectiveness of IT general controls over the relevant
recognition requires significant audit IT systems, including the interface controls between
attention. IT systems and applications.
Globe Telecom, Inc.
Page 3
How our audit addressed the

Key Audit Matter Key Audit Matter
In particular, to ensure that postpaid revenues are
recognized in the proper period, we performed a
combination of controls and substantive testing
approach as follows:
• We tested the design and operating
effectiveness of key controls over charging,
billing and recording of revenue transactions.
• We tested the reliability of key system
generated reports and reconciliations which
serve as basis for recognizing postpaid
revenue in the correct reporting period.
• On a sampling basis, we performed
substantive audit procedures over postpaid
revenue recognized before and after the
reporting period end to validate that the
sampled subscriber transactions are
recognized in the correct reporting period.
Other Information
Management is responsible for the other information. The other information comprises the information
included in the SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and Annual
Report, but does not include the consolidated financial statements and our auditor’s report thereon.
The SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and Annual Report are
expected to be made available to us after the date of this auditor's report.
Our opinion on the consolidated financial statements does not cover the other information and we will
not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information identified above when these becomes available and, in doing so, consider whether
the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the other information identified above which have not yet been received, if we
conclude that there is a material misstatement therein, we are required to communicate the matter to
those charged with governance.
Globe Telecom, Inc.
Page 4
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with PFRS, and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate or to cease operations of the Group, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with PSA will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with PSA, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Globe Telecom, Inc.
Page 5
● Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the Group audit.
We remain solely responsible for our audit opinion.
● Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Globe Telecom, Inc.
Page 6
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is
Aldie P. Garcia.
Isla Lipana & Co.
Aldie P. Garcia
Partner
CPA Cert. No. 107076
P.T.R. No. 0011459, issued on January 12, 2024, Makati City
TIN 923-763-007
BIR A.N. 08-000745-143-2022; issued on January 25, 2022; effective until January 24, 2025
BOA/PRC Reg. No. 0142, effective until November 14, 2025
Makati City
February 6, 2024
Statement Required by Rule 68,
Securities Regulation Code (SRC),
As Amended on October 3, 2019

Globe Telecom, Inc.
We have audited the consolidated financial statements of Globe Telecom, Inc.

(the “Parent Company”) as at and for the year ended December 31, 2023, on which we have
rendered the attached report dated February 6, 2024.
In compliance with SRC Rule 68 and based on the certification received from the Parent Company’s
corporate secretary and the results of our work done, the Parent Company has 834 shareholders
owning one hundred (100) or more shares each as at December 31, 2023.
Isla Lipana & Co.
Aldie P. Garcia
Partner
TIN 923-763-007
Makati City
February 6, 2024
T: +63 (2) 8845 2728, www.pwc.com/ph
Statement Required by Rule 68, Part I, Section 4,

Globe Telecom, Inc.
We have audited the consolidated financial statements of Globe Telecom, Inc. (the “Parent
Company”) and its subsidiaries as at and for the year ended December 31, 2023, on which we have
rendered the attached report dated February 6, 2024. The supplementary information shown in the
Reconciliation of Parent Company’s Retained Earnings Available for Dividend Declaration, Map of
Relationships of the Companies within the Group, and Schedules A, B, C, D, E, F, and G, as
additional components required by the Revised SRC Rule 68, are presented for purposes of filing with
the Securities and Exchange Commission and are not required parts of the basic consolidated
financial statements. Such supplementary information is the responsibility of management and has
been subjected to auditing procedures applied in the audit of the basic consolidated financial
statements.
In our opinion, the supplementary information has been prepared in accordance with Revised SRC
Rule 68.
Isla Lipana & Co.
Aldie P. Garcia
Partner
TIN 923-763-007
Makati City
February 6, 2024
T: +63 (2) 8845 2728, www.pwc.com/ph
Statement Required by Rule 68, Part I, Section 4,

Globe Telecom, Inc.
We have audited in accordance with Philippine Standards on Auditing, the consolidated financial
statements of Globe Telecom, Inc. as at and for the year ended December 31, 2023, and have issued
our report thereon dated February 6, 2024. Our audits were made for the purpose of forming an
opinion on the basic consolidated financial statements taken as a whole. The Supplementary
Schedule on Financial Soundness Indicators, including their definitions, formulas, calculation, and
their appropriateness or usefulness to the intended users, are the responsibility of management.
These financial soundness indicators are not measures of operating performance defined by
Philippine Financial Reporting Standards (PFRS) and may not be comparable to similarly titled
measures presented by other companies. This schedule is presented for the purpose of complying
with the Revised SRC Rule 68 issued by the Securities and Exchange Commission, and is not a
required part of the basic consolidated financial statements prepared in accordance with PFRS. The
components of these financial soundness indicators have been traced to the consolidated financial
statements as at and for the year ended December 31, 2023 and no material exceptions were noted.
Isla Lipana & Co.
Aldie P. Garcia
Partner
TIN 923-763-007
Makati City
February 6, 2024
T: +63 (2) 8845 2728, www.pwc.com/ph
fNa \
GLOBE TELECOM, INC. AND

SUBSIDIARIES
Consolidated Financial Statements
December 31, 2023, 2022 and 2021
CREATE.WONDERFUL.
GLOBE TELECOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31
Notes 2023 2022
(In Thousand Pesos)
ASSETS
Current Assets
Cash and cash equivalents 5 ₱16,645,077 ₱18,033,785
Trade receivables – net 6 18,097,898 23,563,414
Contract assets – net 7.1 6,223,595 6,891,455
Inventories and supplies – net 9 3,388,420 3,881,682
Derivative assets – current 8 516,718 502,332
Prepayments and other current assets 10 21,638,108 19,706,142
66,509,816 72,578,810
Assets classified as held-for-sale 11, 13.1 20,414,321 27,948,915
86,924,137 100,527,725
Noncurrent Assets
Property and equipment – net 11 334,408,653 281,899,060
Intangible assets and goodwill – net 12 23,373,106 25,082,572
Right of use assets – net 13.1 69,538,796 37,108,116
Investments in joint ventures 14 55,335,717 52,137,978
Derivative assets – net of current portion 8 4,200,246 4,627,002
Deferred income tax assets – net 28 2,279,979 2,228,042
Other noncurrent assets 10 35,567,551 52,066,929
524,704,048 455,149,699
TOTAL ASSETS ₱611,628,185 ₱555,677,424
LIABILITIES AND EQUITY

Current Liabilities
Trade payables and accrued expenses 15 ₱87,664,258 ₱88,380,797
Contract liabilities and deferred revenues – current 7.2 7,919,602 7,576,050
Loans payable – current 17 36,792,956 46,172,043
Derivative liabilities – current 8 482,182 609,338
Lease liabilities – current 13.2 5,899,426 4,522,438
Provisions 16 2,960,993 2,583,476
Income tax payable 28 1,605,015 3,621,671
143,324,432 153,465,813
Noncurrent Liabilities
Loans payable – net of current portion 17 213,162,613 187,032,616
Deferred income tax liabilities – net 28 5,983,954 6,446,284
Lease liabilities – non current 13.2 82,825,056 49,709,159
Pension liability 27.1 2,718,312 1,963,490
Other long-term liabilities 18 3,687,080 4,527,192
308,377,015 249,678,741
Total Liabilities 451,701,447 403,144,554
Equity
Capital Stock 20 9,004,030 8,995,602
Additional paid in capital 54,268,520 53,944,871
Cost of share-based compensation 802,701 848,890
Capital securities 20.3 29,977,639 29,977,639
Other reserves 20.8 (1,333,253) (116,306)
Treasury shares 20.4 (10,000,000) (10,000,000)
Retained earnings 77,149,257 68,539,651
Equity attributable to equity holders of the Parent 159,868,894 152,190,347
Non-controlling interest 57,844 342,523
Total Equity 159,926,738 152,532,870
TOTAL LIABILITIES AND EQUITY ₱611,628,185 ₱555,677,424
See accompanying Notes to Consolidated Financial Statements.
CREATE.WONDERFUL.
CONSOLIDATED STATEMENTS OF TOTAL COMPREHENSIVE INCOME
For the Years Ended December 31

Notes 2023 2022 2021
(In Thousand Pesos, Except Per Share Figures)
REVENUES
Service revenues ₱162,333,484 ₱157,979,335 ₱152,262,833
Nonservice revenues 17,830,971 17,061,388 16,233,625
32 180,164,455 175,040,723 168,496,458
INCOME (LOSSES)
Gain on sale of controlling interest on data center business 14.3 - 10,511,945 -
Gain on sale and leaseback of telecom towers - net 11 7,258,378 8,260,927 -
Equity share in net income (losses) of joint ventures 14 2,214,761 1,083,202 881,535
Interest income 21 677,570 340,109 149,508
Gain on disposal of property and equipment – net 371,655 321,354 152,565
Other income – net 22 959,898 2,474,814 4,656,647
11,482,262 22,992,351 5,840,255
COSTS AND EXPENSES
General, selling and administrative expenses 23 74,681,050 74,227,306 71,366,092
Depreciation and amortization 24 47,356,043 45,653,296 41,132,992
Cost of inventories sold 9 18,217,044 17,691,677 17,307,774
Interconnect costs 32, 33.1 1,367,052 1,362,309 1,182,381
Financing costs 25 12,145,879 10,091,289 8,740,763
Impairment and other losses 26 5,463,979 4,906,747 5,566,939
159,231,047 153,932,624 145,296,941
INCOME BEFORE INCOME TAX 32,415,670 44,100,450 29,039,772
PROVISIONS (BENEFIT) FOR INCOME TAX
Current 7,853,664 9,696,533 4,903,568
Deferred (16,004) (200,132) 412,347
28 7,837,660 9,496,401 5,315,915
NET INCOME 24,578,010 34,604,049 23,723,857
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will be reclassified into profit or loss in
subsequent periods:
Transactions on cash flow hedges – net 185,047 (1,379,590) 1,188,210
Exchange differences arising from translations of
foreign investments (22,443) 698,533 31,416
20.8 162,604 (681,057) 1,219,626
Item that will not be reclassified into profit or loss in
subsequent periods:
Changes in fair value of financial assets at fair value through
other comprehensive income 231,871 29,104 378,610
Remeasurement gain (loss) on defined benefit plan (1,604,048) 2,740,701 600,124
20.8 (1,372,177) 2,769,805 978,734
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) (1,209,573) 2,088,748 2,198,360
TOTAL COMPREHENSIVE INCOME ₱23,368,437 ₱36,692,797 ₱25,922,217
(Forward)
CREATE.WONDERFUL.
CONSOLIDATED STATEMENTS OF TOTAL COMPREHENSIVE INCOME

Notes 2023 2022 2021
Total net income attributable to:
Equity holders of the Parent ₱24,512,760 ₱34,563,011 ₱23,652,811
Non-controlling interest 65,250 41,038 71,046
24,578,010 34,604,049 23,723,857
Total other comprehensive income (loss)
attributable to:
Equity holders of the Parent 20.8 (1,216,947) 2,078,822 2,200,527
Non-controlling interest 20.8 7,374 9,926 (2,167)
(1,209,573) 2,088,748 2,198,360
Total comprehensive income attributable to:
Equity holders of the Parent 23,295,813 36,641,833 25,853,338
Non-controlling interest 72,624 50,964 68,879
₱23,368,437 ₱36,692,797 ₱25,922,217
Earnings Per Share

Basic 29 ₱160.45 ₱245.44 ₱173.18
Diluted 29 ₱159.74 ₱244.25 ₱172.25
Cash dividends declared per common share 20.5 ₱100.00 ₱106.00 ₱108.00
CREATE.WONDERFUL.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Year Ended December 31, 2023

Capital Additional Cost of Capital Other Treasury Total Equity Non-
Stock Paid-in Share-Based Securities Reserves Retained Shares Attributable controlling
Notes (Note 20) Capital Compensation (Note 20.3) (Note 20.8) Earnings (Note 20.4) to Parent Interest Total
(In Thousand Pesos)
As of January 1, 2023 ₱8,995,602 ₱53,944,871 ₱848,890 ₱29,977,639 (₱116,306) ₱68,539,651 (₱10,000,000) ₱152,190,347 ₱342,523 ₱152,532,870
Total comprehensive income for the
year - - - - (1,216,947) 24,512,760 - 23,295,813 72,624 23,368,437
Dividends on: 20.5
Common Stock - - - - - (14,418,658) - (14,418,658) - (14,418,658)
Preferred Stock - voting - - - - - (50,027) - (50,027) - (50,027)
Distributions on Capital Securities 20.3 - - - - - (1,330,619) - (1,330,619) - (1,330,619)
Share-based compensation 27.2.1 - - 285,888 - - - - 285,888 - 285,888
Issue of shares under share-based
compensation plan 8,428 323,649 (332,077) - - - - - - -
Non-controlling interest adjustment
arising from deconsolidation of
subsidiary 14.2 - - - - - - - - (357,303) (357,303)
Others - - - - - (103,850) - (103,850) - (103,850)
As of December 31, 2023 ₱9,004,030 ₱54,268,520 ₱802,701 ₱29,977,639 (₱1,333,253) ₱77,149,257 (₱10,000,000) ₱159,868,894 ₱57,844 ₱159,926,738
(Forward)
CREATE.WONDERFUL.

Stock Paid-in Share-Based Securities Reserves Retained Shares Attributable to controlling
Notes (Note 20) Capital Compensation (Note 20.3) (Note 20.8) Earnings (Note 20.4) Parent Interest Total
(In Thousand Pesos)
As of January 1, 2022 ₱8,473,535 ₱37,226,626 ₱843,826 ₱29,977,845 (₱2,195,128) ₱49,775,474 (₱10,000,000) ₱114,102,178 ₱293,688 ₱114,395,866
year - - - - 2,078,822 34,563,011 - 36,641,833 50,964 36,692,797
Dividends on: 20.5
Common Stock - - - - - (14,442,073) - (14,442,073) - (14,442,073)
Distributions on Capital Securities 20.3 - - - - - (1,306,734) - (1,306,734) - (1,306,734)
Issuance cost of capital securities - - - (206) - - - (206) - (206)

Issuance of shares by way of stock
rights 20.2 505,952 16,298,530 - - - - - 16,804,482 - 16,804,482
arising from increase in ownership
share - - - - - - - - (2,129) (2,129)
As of December 31, 2022 ₱8,995,602 ₱53,944,871 ₱848,890 ₱29,977,639 (₱116,306) ₱68,539,651 (₱10,000,000) ₱152,190,347 ₱342,523 ₱152,532,870
(Forward)
CREATE.WONDERFUL.

Stock Paid-in Share-Based Securities Reserves Retained Shares Attributable to controlling
Notes (Note 20) Capital Compensation (Note 20.3) (Note 20.8) Earnings (Note 20.4) Parent Interest Total
(In Thousand Pesos)
As of January 1, 2021 ₱8,464,211 ₱37,001,626 ₱638,323 ₱- (₱4,219,590) ₱40,682,494 ₱- ₱82,567,064 ₱237,406 ₱82,804,470
period - - - - 2,200,527 23,652,811 - 25,853,338 68,879 25,922,217
Dividends on: 20.5
Common Stock - - - - - (14,425,839) - (14,425,839) - (14,425,839)
Preferred Stock – non-voting - - - - - (260,030) - (260,030) - (260,030)
Issuance of capital securities - - - 29,977,845 - - - 29,977,845 - 29,977,845

Reclassification of fair value gain on
investment in equity securities at
FVOCI 20.8 - - - - (176,065) 176,065 - - - -
Redemption of preference share - - - - - - (10,000,000) (10,000,000) - (10,000,000)
Dividends declared by subsidiary
attributable to NCI - - - - - - - - (20,582) (20,582)
Non-controlling interest arising from
business combination - - - - - - - - 8,874 8,874
arising from increase in ownership
share - - - - - - - - (889) (889)
As of December 31, 2021 ₱8,473,535 ₱37,226,626 ₱843,826 ₱29,977,845 (₱2,195,128) ₱49,775,474 (₱10,000,000) ₱114,102,178 ₱293,688 ₱114,395,866
(Forward)
CREATE.WONDERFUL.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Notes 2023 2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax ₱32,415,670 ₱44,100,450 ₱29,039,772
Adjustments for:
Depreciation and amortization 24 47,356,043 45,653,296 41,132,992
Impairment and other losses 26 5,463,979 4,906,747 5,566,939
Financing cost 25 12,145,879 10,091,289 8,740,763
Equity share in net (income) losses in joint ventures 14 (2,214,761) (1,083,202) (881,535)
Gain on sale of controlling interest on data center business 14.3 - (10,511,945) -
Gain on deemed sale of investment in Mynt 14.2 - - (4,344,037)
Foreign exchange losses (gains) – net 22 (1,042,052) 5,343,019 3,656,218
(Gain) loss on derivative instruments 22 740,686 (5,797,800) (3,214,633)
Pension expense 27 842,239 1,089,723 1,172,467
Share-based compensation 27 285,888 440,894 439,827
Interest income 21 (677,570) (340,109) (149,508)
Gain on settlement and remeasurement of ARO 18, 22 - (2,629) (74,433)
Gain on sale and leaseback of telecom towers - net 11 (7,258,378) (8,260,927) -
Gain on disposal of property and equipment (371,655) (321,354) (152,565)
Gain from deconsolidation of subsidiary 14.2, 22 (76,669) - -
Gain on deemed sale of investment in Konsulta 22 - (26,410) -
Gain on sale of investment in HealthNow 22 - (75,245) -
Operating income before working capital changes 87,609,299 85,205,797 80,932,267
Changes in operating assets and liabilities:
Decrease (Increase) in:
Trade receivables – net (2,036,751) (10,142,232) (103,992)
Inventories and supplies 89,047 (82,149) 1,441,224
Contract assets (279,226) (616,657) (2,028,853)
Prepayments and other current assets (1,021,630) (5,013,014) (2,161,170)
Other noncurrent assets 547,578 (288,404) (26,000)
Increase (Decrease) in:
Trade payables and accrued expenses 382,459 3,156,758 (6,061,786)
Contract liabilities and deferred revenues 47,019 (611,873) (777,163)
Other long-term liabilities (2,397,643) (990,006) (343,493)
Cash generated from operations 82,940,152 70,618,220 70,871,034
Income taxes paid (2,493,272) (5,463,218) (5,730,531)
Net cash flows from operating activities 80,446,880 65,155,002 65,140,503
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to:
Property and equipment 11 (70,534,793) (97,983,036) (92,750,679)
Investment properties - (5,622,764) -
Investment in joint ventures 14 (749,390) (585,530) (1,591,856)
Intangible assets 12 (92,878) (3,383,869) (57,661)
Release of loans receivable to related parties 10 (636,000) (681,000) (2,547,935)
Proceeds from sale and leaseback of telecom towers - net 11 24,858,693 29,940,218 -
Collections of loans receivable from related party 10 - 408,000 70,000
Cash outflow from deconsolidation of subsidiary 14.2 (2,457,220) - -
Interest received 660,328 311,379 136,152
Proceeds from sale of property and equipment 747,121 750,716 179,998
Net cash received from sale of data center business 14.3 - 5,030,000 -
Proceeds from sale of investment in HealthNow - 175,725 -
Cash used in investing activities (48,204,139) (71,640,161) (96,561,981)
Income taxes paid (6,274,463) (2,211,098) -
Net cashflows used in investing activities (54,478,602) (73,851,259) (96,561,981)
(Forward)
CREATE.WONDERFUL.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Notes 2023 2022 2021
(In Thousand Pesos)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings:
Long-term 17 ₱45,000,000 ₱8,000,000 ₱50,733,809
Short-term 17 63,250,000 82,020,167 41,894,040
Repayments of borrowings:
Long-term 17 (20,214,691) (15,934,168) (8,009,757)
Short-term 17 (70,905,167) (56,175,000) (42,258,800)
Payments of dividends to stockholders: 20.5
Common (14,418,658) (14,442,073) (14,425,839)
Preferred (50,027) (50,027) (570,087)
Redemption of non-voting preference share 20.4 - - (10,000,000)
Distributions to holders of capital securities 20.3 (1,330,619) (1,306,734) -
Issuance of capital securities 20.3 - - 29,977,845
Issuance of shares by way of stock rights 20.2 - 16,804,482 -
Payments of lease liabilities 13.2 (15,841,394) (6,878,960) (3,566,395)
Interest paid (13,048,218) (9,834,409) (7,692,594)
Dividend paid by subsidiary attributable to NCI - - (20,582)
Net cash (used in) from financing activities (27,558,774) 2,203,278 36,061,640
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS (1,590,496) (6,492,979) 4,640,162
NET FOREIGN EXCHANGE DIFFERENCE ON
CASH AND CASH EQUIVALENTS 201,788 287,569 90,919
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF YEAR 18,033,785 24,239,195 19,508,114
CASH AND CASH EQUIVALENTS AT THE END OF YEAR 5 ₱16,645,077 ₱18,033,785 ₱24,239,195
CREATE.WONDERFUL.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1 Corporate Information
1.1 Globe Telecom, Inc.

Globe Telecom, Inc. (hereafter referred to as “Globe Telecom” or the “Parent Company”) is a stock
corporation organized under the laws of the Philippines on January 16, 1935, and enfranchised
under Republic Act (RA) No. 7229 and its related laws to render any and all types of domestic and
international telecommunications services. Globe Telecom is one of the leading providers of
digital wireless communications services in the Philippines under the Globe Postpaid and Prepaid,
and Touch Mobile (TM). Globe provides digital mobile communication and internet-on-the-go
services nationwide using a fully digital network based on the Global System for Mobile
Communication (GSM), 3G, HSPA+, 4G, LTE and 5G technologies. It provides voice, SMS, data and
value-added services to its mobile subscribers. It also offers domestic and international long
distance communication services or carrier services. Globe Telecom’s head office is located at The
Globe Tower, 32nd Street corner 7th Avenue, Bonifacio Global City, Taguig, Metropolitan Manila,
Philippines. Globe Telecom is listed in the Philippine Stock Exchange (PSE) and has been included
in the PSE composite index since September 17, 2001. Major stockholders of Globe Telecom
include Ayala Corporation (AC), Singapore Telecom International Pte Ltd. (Singtel) and Asiacom
Philippines, Inc. None of these companies exercise control over Globe Telecom.
1.2 Innove Communications, Inc. (Innove)

Globe Telecom owns 100% of Innove, a stock corporation organized under the laws of the
Philippines and enfranchised under RA No. 11151 and its related laws to render any and all types
of domestic and international telecommunications services. Innove holds a license to provide
digital wireless communication services in the Philippines. Innove also has a license to establish,
install, operate and maintain a nationwide local exchange carrier (LEC) service, particularly
integrated local telephone service with public payphone facilities and public calling stations, and
to render and provide international and domestic carrier and leased line services.
On November 2, 2015, Innove and Techzone Philippines incorporated TechGlobal Data Center,
Inc. (TechGlobal), a joint venture company formed for the purpose of operating and managing all
kinds of data centers, and providing information technology-enabled, knowledge-based and
computer-enabled support services. Innove and Techzone hold ownership interest of 49% and
51%, respectively. TechGlobal started commercial operations in August 2017.
1.3 GTI Business Holdings, Inc. (GTI) and Subsidiaries

Globe Telecom owns 100% of GTI. GTI was incorporated and registered under the laws of the
Philippines, on November 25, 2008, as a holding company.
1.4 GTI Corporation (GTIC)

In July 2009, GTI incorporated a wholly owned subsidiary, GTIC, a company organized under the
General Corporation Law of the United States of America, State of Delaware as a wireless and data
communication services provider.
CREATE.WONDERFUL. 10
1.5 Globe Telecom HK Limited (GTHK)
In December 2011, GTI incorporated a wholly owned subsidiary, GTHK, a limited company
organized under the Companies Ordinance of Hong Kong as a marketing and distribution
company. On March 17, 2015, GTHK applied for a services-based operator license (SBO) with the
Office of the Communications Authority in Hong Kong (OFCA) which was subsequently approved
on May 7, 2015. As of June 1, 2020, the SBO was cancelled and surrendered to the OFCA and
GTHK has been winding down its operations. GTHK was previously engaged in the marketing and
selling of telecommunication products and services in the international market, except the United
States of America and the Philippines, under a distributor arrangement.
1.6 Globetel European Limited (GTEU)

On May 10, 2013, GTI incorporated a wholly owned subsidiary, GTEU as holding company for the
operating companies of the Globe Group located in the United Kingdom, Spain and Italy.
1.7 Globetel Singapore Pte. Ltd. (GTSG)

On November 12, 2014, GTI incorporated GTSG, a wholly owned subsidiary, for the purpose of
offering full range of international data services in Singapore under a facilities-based operations
license (FBO) with Infocomm Media and Development Authority (IMDA) in Singapore which was
granted on January 7, 2015.
1.8 Kickstart Ventures, Inc. (Kickstart) and Subsidiaries

On March 28, 2012, Globe Telecom incorporated Kickstart, a stock corporation organized under
the laws of the Philippines and formed primarily for the purpose of investing in individual,
corporate, or start-up businesses, and to do research, technology development and
commercializing of new business ventures.
In February 2014, Kickstart acquired 40% equity interest in Flipside Publishing Services, Inc. (FPSI).
Since Kickstart was able to demonstrate control over FPSI despite having less than 50% ownership
interest, FPSI was assessed to be a subsidiary of Kickstart and is included in the consolidation of
Globe Group. FPSI is engaged in acquiring publishing rights to produce, publish, market, and sell
printed and electronic books (e-books) and other electronic documents and content for
international and domestic sales. FPSI ceased operations in July 2016. FPSI remains a dormant
company as of reporting date.
In February 2020, Kickstart registered three Cayman Islands exempted companies with limited
liabilities, namely (1) Kickstart Capital Co. Ltd. (KCCL), a wholly owned subsidiary of Kickstart;
(2) AG Active Associated I, Limited (AAAL), a wholly owned subsidiary of KCCL; and, (3) Kickstart
Ventures Co. Ltd. (KVCL), a 65% owned subsidiary of KCCL. These entities were formed as a
platform for the management of third party venture capital investment funds.
1.9 Asticom Technology, Inc. (Asticom) and Subsidiaries
On June 3, 2014, Globe Telecom acquired 100% of Asticom, a corporation primarily engaged in
providing business process and shared service support, as well as IT system integration and
consultancy services.
On August 20, 2020, Asticom incorporated its wholly owned subsidiary, Asti Business Services, Inc.
(ABSI). ABSI was incorporated to leverage Asticom's business growth, particularly its full-BPO
services offering.
On January 26, 2021, Asticom incorporated its wholly owned subsidiary, Fiber Infrastructure and
Network Services Inc. (FINSI). FINSI was incorporated to provide end-to-end services and
industry-specific solutions to telecommunications and telecommunications-related companies. On
March 2021, FINSI started its commercial operation.
On April 12, 2021, Asticom incorporated its wholly owned subsidiary, BRAD Warehouse and
Logistics Services Inc. (BRAD). BRAD was incorporated to engage in the business of transporting,
shipping, receiving, storing and managing products and services using technology platforms for
third-party providers.
On November 29, 2021, ABSI acquired 100% of HCX Technology Partners, Inc., a full-fledged
systems integration company offering human capital, customer relationship management and
digital solutions to its clients.
On July 27, 2022, Asticom incorporated its wholly owned subsidiary, Acquiro Solutions and Tech
Inc. (ACQR) to provide manpower services for support and shared services of administrative
functions, information technology including consultancy services for offshore development
services and other related services.
1.10 Globe Capital Venture Holdings Inc. (GCVHI) and Subsidiaries

On June 29, 2015, Globe Telecom incorporated its wholly owned subsidiary, GCVHI as an investing
and holding company primarily engaged in purchasing, subscribing, owning, holding, assigning
real and personal property, shares of stock and other securities. In August 2019, GCVHI was
rebranded to “917 Ventures” to house Globe Telecom’s non-telco incubated products.
On October 13, 2015, GCVHI incorporated its wholly owned subsidiary Adspark Holdings, Inc.
(AHI), a holding company established for the acquisition of additional investment in Globe
Telecom’s non-core business. AHI holds 100% of Adspark Inc. (AI), an advertising company. AI
holds 100% of Socialytics Inc. (Socialytics), a social media marketing firm. On September 1, 2021,
AHI acquired 100% of Techgroowers, Inc., a company engaged in data- and software-related
services through the utilization of telecommunications facilities. On March 22, 2022, the SEC
approved the amendment of Techgroowers’ articles of incorporation which effectively changes its
corporate name to M360, Inc., as well as its primary purpose which is to engage in the business of
application-to-person (A2P) messaging.
On February 4, 2020, GCVHI incorporated 917Ventures, Inc. as a holding company for GCVHI’s
business incubators.
On December 1, 2022, AHI acquired 49% and 51% of outstanding shares of Inquiro from
917Ventures, Inc. and Jerusalem Ventures Holdings Inc. (JVHI), respectively. The acquisition
increased Globe Group’s ownership interest from 49% to 100% and was accounted for as an
acquisition of a subsidiary. Inquiro was incorporated to provide data management and other data-
related services, through the utilization of telecommunication facilities.
On February 14, 2023, the SEC approved the amendment of AHI’s articles of incorporation which
effectively change its corporate name to Brave Connective Holdings, Inc. (BCHI).
On June 5, 2023, 917Ventures, Inc. incorporated its wholly owned subsidiary Slyce Digital, Inc. to
engage in the business of developing, marketing, advertising, managing, and operating
technology platforms.
1.11 Bayan Telecommunications Inc. (BTI) and Subsidiaries
Globe owns 99% of BTI, a stock corporation organized under the laws of the Philippines and
enfranchised under RA No. 11503 and its related laws to render domestic and international
telecommunications services. BTI is a facilities-based provider of data services and fixed-line
telecommunications.
BTI’s subsidiaries are: Radio Communications of the Philippines, Inc. (RCPI), Telecoms
Infrastructure Corp. of the Philippines (Telicphil), Sky Internet, Incorporated (Sky Internet),
GlobeTel Japan (formerly BTI Global Communications Japan, Inc.), and NDTN Land, Inc. (NLI),
(herein collectively referred to as “BTI Group”).
1.12 TaoDharma Inc. (Tao)

Globe Telecom owns 67% of Tao, an entity incorporated and registered under the laws of the
Philippines. Tao operates and maintains retail stores in strategic locations within the Philippines that
sells telecommunications or internet-related services, and devices, gadgets and accessories.
1.13 GTowers Inc (GTowers)

On August 17, 2018, GTowers was incorporated as a wholly owned subsidiary of Globe Telecom.
GTowers is still under pre-operating stage as of reporting date.
1.14 Yondu, Inc. and Subsidiaries

Globe Telecom owns 100% of Yondu an entity engaged in the development and creation of
wireless products and services accessible through mobile devices or other forms of
communication devices. It also provides internet and mobile value-added services, information
technology and technical services including software development and related services. Yondu is
registered with the Department of Transportation and Communication (DOTC) as a content
provider.
Yondu holds 100% of Rocket Search, Inc. (formerly Yondu Software Labs, Inc.), a company
primarily engaged in providing information technology (IT) products and services and engaged in
IT placement services.
On December 15, 2022, Yondu acquired the ownership of Third Pillar Business Applications, Inc.
(TPBAI) and Subsidiaries and CaelumPacific and Subsidiaries from GTI, a wholly-owned subsidiary
of Globe Telecom.
Third Pillar Business Applications, Inc. (TPBAI)
On August 17, 2020, GTI entered into a Share Purchase Agreement for the acquisition of 67% of
TPBAI. TPBAI, a corporation organized under the laws of the Philippines, is engaged in systems
integration, license reselling, and data management services.
Third Pillar Global Delivery Center Inc. (TPGDC) is a wholly owned subsidiary of TPBAI that is
engaged in software implementation and maintenance services and the outsourcing arm of TPBAI.
On January 1, 2022, TPBAI incorporated Third Pillar Asia Pacific Pte. Ltd. (TPAPPL), a wholly owned
subsidiary organized under the laws of Singapore, as part of TPBAI’s expansion to Asia Pacific.
On December 15, 2022, the ownership of TPBAI and Subsidiaries was transferred from GTI to
Yondu, Inc., a wholly-owned subsidiary of Globe Telecom.
CaelumPacific Corp.(CaelumPacific) and Subsidiaries
On July 30, 2020, GTI incorporated CaelumPacific, a wholly owned subsidiary organized under the
laws of the Philippines for the purpose of providing technical consulting and IT related services.
On July 31, 2020, Caelum US Holdings Inc. (Caelum US), a wholly owned subsidiary of
CaelumPacific, was incorporated under the laws of the state of Delaware as holding company.
On August 3, 2020, Caelum Northwest Corp. (Caelum Northwest), a wholly owned subsidiary of
Caelum US, was incorporated under the laws of the state of Washington for the purpose of
customized cloud software development and providing cloud consulting services.
On November 3, 2020, the definitive agreements between Caelum Group and Cascadeo have
been signed and executed following the completion of all relevant conditions relating to the sale
of assets of Cascadeo in the Philippines and the US. Cascadeo is a group of companies in the
Philippines and US which offers cloud-native consulting and managed services capabilities for
enterprises and small and medium business customers. . The asset purchase agreement entered
into by Caelum Group and Cascadeo entities also mandated a holding company established by
the sellers to invest in 16.67% of CaelumPacific’s capital, effectively reducing GTI’s ownership to
83.33%.
On May 30, 2021, the Board of Directors approved GTI’s additional capital infusion amounting to
$500,000, effectively increasing GTI’s ownership to 85%.
On February 11, 2022, the Board of Directors approved GTI’s additional capital infusion amounting
to $2.00 million, which further increased GTI’s ownership to 88%.
On December 15, 2022, the ownership of CaelumPacific and Subsidiaries was transferred from GTI
to Yondu, Inc., a wholly-owned subsidiary of Globe Telecom.
1.15 Electronic Commerce Payments, Inc. (ECPay)

On October 25, 2019, Globe Telecom acquired 77% ownership of ECPay. ECPay is primarily engaged
in the business of providing IT and e-commerce solutions, including, but not limited to, prepaid
phone and internet products, bills payments and others.
On September 29, 2023, Globe Telecom entered into a Share Purchase agreement with Globe
Fintech Innovations, Inc. (Mynt) for the sale of Globe’s 77% investment in ECPay for a total
consideration of ₱2,310.00 million. The closing of the transaction and actual transfer of ownership
is still subject to the Philippine Competition Commission (PCC) approval. However, Globe Telecom
ceased to consolidate ECPay’s financial statements as of September 29, 2023 as certain terms and
conditions in the Share Purchase Agreement constrains Globe’s exposures and rights to variable
returns. (See Note 14.2)
2 Summary of Material Accounting Policies

2.1 Basis of Preparation and Presentation
The consolidated financial statements of Globe Telecom, Inc. and its subsidiaries, collectively
referred to as the “Globe Group”, have been prepared under the historical cost convention
method, except for:
▪ certain financial instruments carried at fair value;
▪ certain financial instruments and lease liabilities carried at amortized cost;
▪ inventories carried at net realizable value;
▪ investments in joint ventures in which equity method of accounting is applied; and,
▪ retirement benefit obligation measured at the present value of the defined benefit obligation
net of the fair value of the plan assets.
The consolidated financial statements of the Globe Group are presented in Philippine Peso (₱),
which is Globe Telecom’s functional currency, and rounded to the nearest thousands, except when
otherwise indicated.
On February 6, 2023, the BOD approved and authorized the release of the consolidated financial
statements of Globe Telecom, Inc. and its subsidiaries as of December 31, 2023 and 2022 and
each of the three years in the period ended December 31, 2023.
2.2 Statement of Compliance
The consolidated financial statements of the Globe Group have been prepared in accordance
with Philippine Financial Reporting Standards (PFRS), which includes all applicable PFRS,
Philippine Accounting Standards (PAS), and Interpretations issued by the Int ernational Financial
Reporting Interpretations Committee (IFRIC), Philippine Interpretations Committee (PIC), and
Standing Interpretations Committee (SIC) as approved by the Financial and Sustainability
Reporting Standards Council (FSRSC) and the Board of Accountancy, and adopted by the
Securities and Exchange Commission (SEC).
2.3 Composition of the Group
The accompanying consolidated financial statements include the accounts of Globe Telecom and
the following subsidiaries:
Parent Company’s
Percentage of Ownership
Place of
Name of Subsidiary Incorporation9 Principal Activity 2023 2022
Innove Philippines Wireline voice and data communication services 100% 100%
GTI Philippines Holding company 100% 100%
GTIC United States Wireless and data communication services 100% 100%
GTHK Hong Kong Marketing and distribution company 100% 100%
GTSG Singapore Wireless and data communication services 100% 100%
GTEU United Kingdom Holding company 100% 100%
Globe STT GDC3 Philippines Data center management 50% 50%
KVI Philippines Venture capital company 100% 100%
FPSI1 Philippines E-book solutions 40% 40%
KCCL Cayman Islands Management of capital investment funds 100% 100%
KVCL Cayman Islands Management of capital investment funds 65% 65%
AAAL Cayman Islands Management of capital investment funds 100% 100%
Asticom Philippines Support and shared services provider 100% 100%
ABSI Philippines Support and shared services provider 100% 100%
HCX Philippines Human capital management services 100% 100%
FINSI Philippines Support and industry specific solutions 100% 100%
BRAD Philippines Warehouse and logistics 100% 100%
ACQR2 Philippines Support and shared services provider 100% 100%
GCVHI Philippines Holding Company 100% 100%
917V Philippines Venture capital company 100% 100%
Slyce8 Philippines Management of technology platforms 100% 100%
BCHI7 Philippines Holding company 100% 100%
AI Philippines Advertising company 100% 100%
Socialytics Philippines Advertising company 100% 100%
M360 Philippines A2P messaging 100% 100%
Inquiro4 Philippines Data management services 100% 100%
BTI Philippines Wireline voice and data communication services 99% 99%
RCPI Philippines Wireline communication services 91% 91%
Telicphil1 Philippines Telco equipment administration and maintenance 58% 58%
Sky Internet Philippines Data communication services 100% 100%
GlobeTel Japan Japan Wireless and data communication services 100% 100%
NLI Philippines Land holding company 70% 70%
Tao Philippines Distribution company 67% 67%
GTowers Inc. Philippines Tower company 100% 100%
Yondu Philippines Information technology and software development 100% 100%
Rocket Search Philippines Information technology and software development 100% 100%
TPBAI5 Philippines Data management services 67% 67%
TPGDC Philippines Support and shared services provider 100% 100%
TPAPPL2 Singapore Data management services 100% 100%
CaelumPacific5 Philippines Technical consulting and IT related services 88% 88%
Caelum US United States Holding company 100% 100%
Caelum Northwest United States Cloud software development and consulting services 100% 100%
EC Pay6 Philippines Information technology and electronic services - 77%
1
Ceased operations
2
Incorporated in 2022
3
Deconsolidated in 2022
4
Consolidated in 2022
5
Transferred to Yondu in 2022
6
Deconsolidated in 2023
7
Formerly AHI
8
Incorporated in 2023
9
Same with principal place of business
2.4 Business Combination and Goodwill
Acquisitions of businesses are accounted for using the purchase method. The consideration
transferred in a business combination is measured at fair value, which is calculated as the sum of
the acquisition-date fair values of the assets transferred by the Globe Group, liabilities incurred by
the Globe Group to the former owners of the acquiree and the equity interest issued by the Globe
Group in exchange for control of the acquiree. Acquisition related costs are generally recognized
in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized
at their fair value except that:
▪ deferred tax assets or liabilities, and assets or liabilities related to employee benefit
arrangements are recognized and measured in accordance with PAS 12, Income Taxes and
PAS 19, Employee Benefits, respectively;
▪ liabilities and equity instruments related to share-based payment arrangements of the
acquiree or share-based payment arrangement of the Globe Group entered into to replace
share-based payment arrangements of the acquiree are measured in accordance with PFRS 2,
Share-based Payment, at the acquisition date; and
▪ assets (or disposal groups) that are classified as held for sale in accordance with PFRS 5,
Non-current assets Held for Sale and Discontinued Operations are measured in accordance
with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any
non-controlling interest in the acquiree, and the fair value of the acquirer’s previously held equity
interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable
assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date
amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the
consideration transferred, the amount of any non-controlling interests in the acquiree and the fair
value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized
immediately in the consolidated profit or loss as bargain purchase gain.
Goodwill is not amortized but is reviewed for impairment at least annually. For purposes of
impairment testing, goodwill is allocated to each of the Globe Group’s cash-generating units
(CGU) that are expected to benefit from the synergies of the combination. In certain
circumstances where it is not possible to complete the initial allocation of the goodwill to a CGU
or group of CGUs for impairment purposes before the end of the annual period in which the
combination is effected, the goodwill (or part of it) is left unallocated for that period. Goodwill
must then be allocated before the end of the first annual period beginning after the acquisition
date.
Non-controlling interests that are present ownership interests and entitle their holders to a
proportionate share of the entity’s net assets in the event of liquidation may be initially measured
either at fair value or at the non-controlling interests’ proportionate share of the recognized
amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a
transaction-by-transaction basis. Other types of non-controlling interest are measured at fair
value or, when applicable, on the basis specified in another PFRS.
When the consideration transferred by the Globe Group in a business combination includes assets
or liabilities resulting from a contingent consideration arrangement, the contingent consideration
is measured at its acquisition-date fair value and included as part of the consideration transferred
in a business combination. Changes in the fair value of the contingent consideration that qualify
as measurement period adjustments are adjusted retrospectively, with corresponding adjustments
against goodwill. Measurement period adjustments are adjustments that arise from additional
information obtained during the measurement period (which cannot exceed one year from
acquisition date) about facts and circumstances that existed at the acquisition date.
The subsequent accounting for the changes in fair value of the contingent consideration that do
not qualify as measurement period adjustments depends on how the contingent consideration is
classified. Contingent consideration that is classified as equity is not measured at subsequent
reporting dates and its subsequent settlement is accounted for within equity. Contingent
consideration that is classified as an asset or a liability is remeasured at subsequent reporting
dates in accordance with PFRS 9, Financial Instruments, or PAS 37, Provisions, Contingent
Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss being
recognized in profit or loss.
When a business combination is achieved in stages, the Globe Group’s previously held equity
interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or
loss, if any, is recognized in profit or loss. Amount arising from interests in the acquiree prior to
the acquisition date that have previously been recognized in other comprehensive income are
reclassified to profit or loss where such treatment would be appropriate if that interest were
disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting
period in which the combination occurs, the Globe Group reports provisional amounts for the
items for which the accounting is incomplete. Those provisional amounts are adjusted during the
measurement period, or additional assets or liabilities are recognized, to reflect new information
obtained about facts and circumstances that existed at the acquisition date that, if known, would
have affected the amounts recognized at that date.
2.4.1 Consolidation procedures

The assets, liabilities, income and expense of subsidiaries are consolidated from the date on which
control is transferred to the Parent Company and ceases to be consolidated from the date on
which control is transferred out of the Parent Company.
The financial statements of the subsidiaries are prepared for the same reporting year as the Parent
Company as well as accounting policies for like transactions and other events in similar
circumstances. When necessary, adjustments are made to the financial statements of the
subsidiaries to bring their accounting policies in line with the Globe Group’s accounting policies.
All significant intercompany balances and transactions, including intercompany profits and losses,
were eliminated in full during consolidation.
For the purposes of presenting these consolidated financial statements, the assets and liabilities of
the Globe Group’s foreign operations are translated into Philippine Peso using exchange rates
prevailing at the end of each reporting period. Income and expense items are translated at the
average exchange rates for the period. Exchange differences arising from the translation, if any,
are recognized in other comprehensive income and accumulated in other equity reserves.
On the disposal of a foreign operation, all of the exchange differences accumulated in equity
reserves in respect of that operation attributable to the owners of the Company are reclassified to
profit or loss.
2.4.2 Determination of control

The Parent Company controls an investee if and only if the Parent Company has:
▪ power over the investee (i.e., existing rights that give it the current ability to direct the relevant
activities of the investee);
▪ exposure, or rights, to variable returns from its involvement with the investee; and
▪ the ability to use its power over the investee to affect its returns.
When the Parent Company has less than a majority of the voting or similar rights of an investee,
the Parent Company considers all relevant facts and circumstances in assessing whether it has
power over an investee, including:
▪ the contractual arrangement with the other vote holders of the investee;
▪ rights arising from other contractual arrangements; and
▪ the Parent Company’s voting rights and potential voting rights.
The Globe Group re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control.
2.4.3 Changes in ownership without loss of control

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. The carrying amounts of the Globe Group’s interests and the non-controlling
interests are adjusted to reflect the changes in their relative interest in the subsidiaries. Any
difference between the amount by which the non-controlling interest are adjusted and the fair
value of the consideration paid or received is recognized directly in equity and attributed to the
equity holders of the Parent Company.
2.4.4 Changes in ownership with loss of control

If the Globe Group loses control over a subsidiary, it derecognizes the related assets (including
goodwill), liabilities, non-controlling interest and other components of equity while any resulting
gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value.
2.5 Financial Instruments
2.5.1 Initial Recognition

Financial instruments are recognized in the Globe Group’s consolidated statements of financial
position when the Globe Group becomes a party to the contractual provisions of the
instrument.
Purchases or sales of financial assets that require delivery of assets within the time frame
established by regulation or convention in the marketplace are recognized on the trade date,
i.e., the date that the Globe Group commits to purchase or sell the asset.
Financial instruments are recognized initially at fair value. Transaction costs are included in the
initial measurement of the Group’s financial instruments, except for financial instruments
classified at fair value through profit or loss (FVPL).
2.5.2 Classification and Subsequent Measurement of Financial Assets

The Globe Group classifies its financial assets into the following categories: financial assets at
FVPL, financial assets at amortized cost and financial assets at fair value through oth er
comprehensive income (FVOCI).
2.5.2.1 Financial assets at FVPL

The Globe Group classifies the following investments as financial assets at FVPL:
▪ investments in equity securities unless irrevocably elected at initial recognition to be
measured at FVOCI;
▪ investments in debt instruments held within a business model whose objective is to sell
prior to maturity or has contractual terms that does not give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding, unless designated as effective hedging instruments under a cash flow hedge;
▪ investments that contain embedded derivatives; and
▪ investment in debt instruments designated as financial assets at FVPL at initial recognition.
Financial assets at FVPL are carried at fair value at the end of each reporting period with any
resultant gain or loss recognized in profit or loss.
Financial assets classified under this category are disclosed in Note 31.1.
2.5.2.2 Financial assets at amortized cost

Investments in debt instrument, loans, trade and other receivables that are held within a
business model whose objective is to collect the contractual cash flows and has contractual cash
flows that are solely payments of principal and interest on the principal amount outst anding are
classified as financial assets at amortized cost, unless the asset is designated at FVPL under the
fair value option.
Subsequent to initial recognition, financial assets classified under this category are measured at
amortized cost using effective interest method, less any impairment.
Interest income is recognized by applying the effective interest rate, except for short -term
receivables when the effect of discounting is not material.
Financial assets classified under this category are disclosed in Note 31.1.
2.5.2.3 Financial assets at fair value through other comprehensive income
The Globe Group classifies the following investments as financial assets at FVOCI:
▪ Investments in debt instrument that is held within a business model whose objective is
achieved both by collecting contractual cash flows and selling financial assets and has
contractual terms that give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding, unless the asset is designated
at FVPL under the fair value option;
▪ Investments in equity securities irrevocably elected to be measured at FVOCI; and
▪ Derivative designated as effective hedging instruments under cash flow hedges.
Financial assets at FVOCI are carried at fair value at the end of each reporting period. Changes
in the carrying amount financial assets at FVOCI arising from movements in fair value are
recognized in other comprehensive income and accumulated in other equity reserves. When the
investment is disposed of, the cumulative gain or loss previously accumulated in equity reserves
is reclassified directly to retained earnings.
Financial assets classified under this category are disclosed in Notes 31.1.
2.5.3 Impairment of Financial Assets and Contract Assets at amortized cost

The Globe Group assesses at end of the reporting date whether a financial asset or group of
financial assets is impaired.
The Globe Group recognizes a loss allowance for expected credit losses on investments in debt
instruments that are measured at amortized cost, loans, trade receivables and contract assets.
The amount of expected credit losses is updated at each reporting date to reflect c hanges in
credit risk since initial recognition of the respective financial instrument.
The Globe Group applies the simplified ECL approach and always recognizes lifetime ECL for
trade receivables and contract assets. The expected credit losses on these fi nancial assets are
estimated based on the characteristics of the product and payment behavior of the subscriber
at the reporting date.
For all other financial instruments, the Globe Group recognizes lifetime ECL when there has
been a significant increase in credit risk since initial recognition. However, if the credit risk on
the financial instrument has not increased significantly since initial recognition, the Globe Group
measures the loss allowance for that financial instrument at an amount equal to 12 ‑month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default
events over the expected life of a financial instrument. In contrast, 12‑month ECL represents the
portion of lifetime ECL that is expected to result from default events on a financial instrument
that are possible within 12 months after the reporting date.
The Globe Group measures ECL on an individual basis, or on a collective basis for portfolios of
receivables that share similar economic risk characteristics.
Significant increase in credit risk
In assessing whether the credit risk on non-trade receivables has increased significantly since
initial recognition, the Globe Group compares the risk of a default occurring on the financial
instrument at the reporting date with the risk of a default occurring on the financial instrument
at the date of initial recognition. In making this assessment, the Globe Group considers both
quantitative and qualitative information that is reasonable and supportable, includin g historical
experience and forward‑looking information. The forward‑looking information considered
includes the future prospects of the industries in which the Group’s debtors operate.
In particular, the following information is taken into account when assessing whether credit risk
has increased significantly since initial recognition:
▪ an actual or expected significant deterioration in the financial instrument’s credit rating;

▪ significant deterioration in external market indicators of credit risk for a par ticular financial
instrument;
▪ existing or forecast adverse changes in business, financial or economic conditions that are
expected to cause a significant decrease in the debtor’s ability to meet its debt obligations;
▪ an actual or expected significant deterioration in the operating results of the debtor;
▪ significant increases in credit risk on other financial instruments of the same debtor;
▪ an actual or expected significant adverse change in the regulatory, economic, or
technological environment of the debtor that results in a significant decrease in the debtor’s
ability to meet its debt obligations.
Despite the foregoing, the Globe Group assumes that the credit risk on non -trade receivables
has not increased significantly since initial recognition if the instrument is determined to have
low credit risk at the reporting date. The Globe Group considers a financial asset to have low
credit risk when the counterparty has a strong financial position and there is no past due
amounts. An instrument is determined to have low credit risk if:
▪ The financial instrument has a low risk of default,
▪ The debtor has a strong capacity to meet its contractual cash flow obligations in the near
term, and
▪ Adverse changes in economic and business conditions in the longer term may, but will not
necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.
The Globe Group regularly monitors the effectiveness of the criteria used to identify whether
there has been a significant increase in credit risk and revises them as appropriate to ensure
that the criteria are capable of identifying significant increase in credit risk before the amount
becomes past due.
Definition of default
For subscribers receivable and contract assets, the Globe Group considers that default has
occurred when the subscriber has been permanently disconnected.
For all other receivables, The Globe Group considers the following as constituting an event of
default as historical experience indicates that financial assets that meet either of the following
criteria are generally not recoverable:
▪ when there is a breach of financial covenants by the debtor; or
▪ information developed internally or obtained from external sources indicat es that the
debtor is unlikely to pay its creditors, including the Globe Group, in full (without taking into
account any collateral held by the Group).
Irrespective of the above analysis, the Globe Group considers that default has occurred when a
financial asset is more than 90 days past due unless the Globe Group has reasonable and
supportable information to demonstrate that a more lagging default criterion is more
appropriate.
Credit‑impaired financial assets
A financial asset is credit‑impaired when one or more events that have a detrimental impact on
the estimated future cash flows of that financial asset have occurred. Evidence that a financial
asset is credit‑impaired includes observable data about the following events:
▪ significant financial difficulty of the issuer or the borrower;
▪ a breach of contract, such as a default or past due event;
▪ the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s
financial difficulty, having granted to the borrower a concession(s) that the lender(s) would
not otherwise consider;
▪ it is becoming probable that the borrower will enter bankruptcy or other financial
reorganization; or
▪ the disappearance of an active market for that financial asset because of financial
difficulties.
Write‑off policy
The Group writes off a financial asset when there is information indicating that the debtor is in
severe financial difficulty and there is no realistic prospect of recovery, (e.g. when the debtor
has been placed under liquidation or has entered into bankruptcy proceedings, or when the
Group has effectively exhausted all collection efforts). Financial assets written off may still be
subject to enforcement activities under the Globe Group’s recovery procedures, taking into
account legal advice where appropriate. Any recoveries made are recognized in profit or loss.
Measurement and recognition of expected credit losses

The measurement of expected credit losses is a function of the probability of default, loss given
default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The
assessment of the probability of default and loss given default is based on historical data
adjusted by forward‑looking information as described above.
As for the exposure at default, this is represented by the assets’ gross carrying amount at the
reporting date.
The expected credit loss is estimated as the difference between all contractual cash flows that
are due to the Globe Group in accordance with the contract and all the cash flows that the
Globe Group expects to receive, discounted at the original effective interest rate.
If the Globe Group has measured the loss allowance for a financial instrument at an amount
equal to lifetime ECL in the previous reporting period, but determines at the current reporting
date that the conditions for lifetime ECL are no longer met, the Globe Group measures the loss
allowance at an amount equal to 12‑month ECL at the current reporting date, except for assets
such as trade receivables and contract assets for which simplified approach was used.
The Globe Group recognizes an impairment gain or loss in profit or loss for all financial
instruments with a corresponding adjustment to their carrying amount through a loss allowance
account.
2.5.4 Classification of financial liabilities and equity
Debt and equity instruments are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a
financial liability and equity instrument.
2.5.4.1 Classification and Subsequent Measurement of Financial liabilities

The Globe Group further classifies its financial liabilities into financial liabilities at FVPL and
financial liabilities at amortized cost. The classification depends on the n ature and purpose of
the financial liability and is determined at the time of initial recognition .
2.5.4.1.1 Financial liabilities at FVPL

This category consists of financial liabilities that were designated by management as FVPL on
initial recognition and derivative financial liabilities not designated as effective hedging
instruments under cash flow hedges.
Financial liabilities at FVPL are carried in the consolidated statements of financial position at fair
value, with changes in fair value recognized in profit or loss.
Financial liabilities classified under this category are disclosed in Note 31.1.
2.5.4.1.2 Financial liabilities at amortized cost

Loans, trade and other payables which are not designated as financial liabilities at FVPL are
classified as financial liabilities at amortized cost. Financial liabilities classified under this
category are subsequently measured at amortized cost using the effective rate method .
Financial liabilities classified under this category are disclosed in Note 31.1.
2.5.4.1.3 Equity instruments
Capital Stock
Capital stock is recognized as issued when the stock is paid for or subscribed under a binding
subscription agreement and is measured at par value. The transaction costs incurred as a
necessary part of completing an equity transaction are accounted for as part of that transaction
and are deducted from additional paid-in capital, net of related income tax benefits.
Additional Paid-in Capital

Additional paid-in capital includes any premium received in excess of par value on the issuance
of capital stock.
Capital Securities
Capital Securities are perpetual securities in respect of which there is no fixed redemption date
and the redemption is at the option of the Globe Group. The Globe Group also has the sole and
absolute discretion to defer payment of any or all of the distribution.
The proceeds received from the issuance of the securities are credited to capital securities
account under the equity section of the consolidated statements of financial position.
Incremental costs directly attributable to the issuance of capital securities are recognized as a
deduction from equity, net of tax.
Treasury Shares
Own equity instruments which are reacquired are carried at cost and deducted from equity. No
gain or loss is recognized on the purchase, sale, reissuance or cancellation of the Parent
Company’s own equity instruments. When the shares are retired, the capital stock account is
reduced by its par value and the excess of cost over par value upon retirement is debited to
additional paid -in capital to the extent of the specific or average additional paid-in capital when
the shares were issued and to retained earnings for the remaining balance.
Retained Earnings
Retained earnings represent accumulated profit attributable to equity holders of the Parent
Company after deducting dividends declared. Retained earnings may also include effect of
changes in accounting policy as may be required by the standard’s transitional provisions.
2.5.5 Derivative Instruments

Derivative financial instruments are initially recognized at fair value on the date on which a
derivative contract is entered into and are subsequently measured at fair value. Derivatives are
carried as financial assets when the fair value is positive and as financial liab ilities when the fair
value is negative.
The method of recognizing the resulting gain or loss depends on whether the derivative is
designated as a hedge of an identified risk and qualifies for hedge accounting treatment. The
objective of hedge accounting is to match the impact of the hedged item and the hedging
instrument in the consolidated profit or loss. To qualify for hedge accounting, the hedging
relationship must comply with requirements such as the designation of the derivative as a
hedge of an identified risk exposure, hedge documentation, probability of occurrence of the
forecasted transaction in a cash flow hedge, assessment (both prospective and retrospective
bases) and measurement of hedge effectiveness, and reliability of the measurement bases of
the derivative instruments.
Upon inception of the hedge, the Globe Group documents the relationship between the
hedging instrument and the hedged item, its risk management objective and strategy for
undertaking various hedge transactions, and the details of the hedging instrument and the
hedged item. The Globe Group also documents its hedge effectiveness assessment
methodology, both at the hedge inception and on an ongoing basis, as to whether the
derivatives that are used in hedging transactions are highly effective in offsetting changes in fair
values or cash flows of hedged items.
Hedge effectiveness is likewise measured, with any ineffectiveness being reported immediately
in the consolidated profit or loss.
2.5.5.1 Types of Hedges

The Globe Group designates derivatives which qualify as accounting hedges as either:
▪ a hedge of the fair value of a recognized fixed rate asset, liability or unrecognized firm
commitment (fair value hedge); or
▪ a hedge of the cash flow variability of recognized floating rate asset and liability or
forecasted sales transaction (cash flow hedge).
Fair Value Hedges
Fair value hedges are hedges of the exposure to variability in the fair value of recognized assets,
liabilities or unrecognized firm commitments. The gain or loss on a derivative instrument
designated as a fair value hedge, as well as the offsetting loss or gain on the hedged item
attributable to the hedged risk, are recognized in the consolidated profit or loss in the same
accounting period. Hedge effectiveness is determined based on the hedge ratio of the fair value
changes of the hedging instrument and the underlying hedged item. When the hedge ceases to
be highly effective, hedge accounting is discontinued.
Cash Flow Hedges

A cash flow hedge is a hedge of the exposure to variability in future cash flows related to a
recognized asset, liability or a forecasted sales transaction. Changes in the fair value of a
hedging instrument that qualifies as a highly effective cash flow hedge are recognized in other
comprehensive income and accumulated in other equity reserves. Any hedge ineffectiveness is
immediately recognized in the consolidated profit or loss.
If the hedged cash flow results in the recognition of a nonfinancial asset or liability, gains and
losses previously recognized in other comprehensive income are transferred fr om equity and
included in the initial measurement of the cost or carrying value of the asset or liability.
Otherwise, for all other cash flow hedges, gains and losses initially recognized in equity are
transferred to consolidated profit or loss in the same period or periods during which the
hedged forecasted transaction or recognized asset or liability affect earnings.
Hedge accounting is discontinued prospectively when the hedge ceases to be highly effective.
When hedge accounting is discontinued, the cumulative gains or losses on the hedging
instrument that has been recognized in OCI is retained in other equity reserves until the hedged
transaction impacts consolidated profit or loss. When the forecasted transaction is no longer
expected to occur, any net cumulative gains or losses previously recognized in other equity
reserves is immediately reclassified in the consolidated profit or loss.
2.5.6 Other Derivative Instruments Not Accounted for as Accounting Hedges

Certain freestanding derivative instruments that provide economic hedges under the Globe
Group’s policies either do not qualify for hedge accounting or are not designated as accounting
hedges. Changes in the fair values of derivative instruments not designated as hedges are
recognized immediately in the consolidated profit or loss.
2.5.7 Offsetting
Financial assets and financial liabilities are offset and the net amount is reported in the
consolidated statements of financial position if, and only if, there is a currently enforceable legal
right to offset the recognized amounts and there is an intention to settle on a net basis, or to
realize the asset and settle the liability simultaneously.
2.5.8 Derecognition of Financial Instruments
2.5.8.1 Financial Asset

The Globe Group derecognizes a financial asset only when the contractual rights to the cash
flows from the asset expire or when the Globe Group transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another entity. If the Globe
Group neither transfers nor retains substantially all the risks and rewards of ownership and
continues to control the transferred asset, the Globe Group recognizes its retained interest in
the asset and an associated liability for amounts it may have to pay. If the Globe Group retains
substantially all the risks and rewards of ownership of a transferred financial asset, the Globe
Group continues to recognize the financial asset and also recognizes a collateralized borrowing
for the proceeds received.
On derecognition of financial asset in its entirety, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable are recognized in the
consolidated profit or loss.
2.5.8.2 Financial Liability

A financial liability is derecognized when the obligation under the liability is discharged,
cancelled or expired. On derecognition of financial liabilities, the difference between the
carrying amount of the financial liability derecognized and the sum of consideration paid and
payable is recognized in the consolidated profit or loss.
Modification of Debt Terms in a Financial Liability
A modification of debt terms may include changes to stated interest rate for the remaining
original life of the debt, maturity date or dates, currency denomination, and face amount of the
debt, among others.
A substantial modification of the terms in a financial liability is accounted for as an
extinguishment of the original liability and recognition of a new liability.
When the modification of debt terms in a financial liability is not substantial, the revised cash
flows as a result of the modification should be discounted at the date of the modification at the
original effective interest rate. The difference between the carrying amount of the liability
immediately before the modification and the sum of the present value of the cash flows of the
modified liability discounted at the original EIR should be recognized in profit or loss as a
modification gain or loss.
A modification is deemed to be substantial if the net present value of the cash flows under the
modified terms, including fees paid or received between the borrower and the lender and fees
paid or received by either the borrower or lender on the other’s behalf , is at least 10 per cent
different from the net present value of the remaining cash flows of the liability prior to the
modification, both discounted at the original effective interest rate of the liability prior to the
modification.
2.6 Inventories
Inventories are initially measured at cost. Subsequently, inventories are stated at the lower of cost and
net realizable value. The costs of inventories are calculated using the moving average method. Net
realizable value represents the estimated selling price less all costs necessary to make the sale.
When the net realizable value of the inventories is lower than the cost, the Globe Group provides for
an allowance for the decline in the value of the inventory and recognizes the write-down as an
expense in the consolidated profit or loss. The amount of any reversal of any write-down of
inventories, arising from an increase in net realizable value, is recognized as a reduction in the amount
of inventories recognized as an expense in the period in which the reversal occurs.
2.7 Prepayments
Prepayments represent expenses not yet incurred but already paid in cash. Prepayments are
initially recorded as assets and measured at the amount of cash paid. Subsequently, these are
charged to profit or loss as they are consumed in operations or expire with the passage of time.
Prepayments are classified in the consolidated statement of financial position as current assets
when the cost of goods or services related to the prepayments are expected to be incurred within
one year. Otherwise, prepayments are classified as non-current assets.
2.8 Property and Equipment

Property and equipment are initially measured at cost. The cost of an item of property and
equipment comprises:
▪ its purchase price, including import duties and non-refundable purchase taxes, after
deducting trade discounts and rebates;
▪ any costs directly attributable to bringing the asset to the location and condition necessary
for it to be capable of operating in the manner intended by management; and
▪ the initial estimate of the future costs of dismantling and removing the item and restoring the
site on which it is located.
The cost of self-constructed assets includes the cost of materials and direct labor, any other costs
directly attributable to bringing the assets to a working condition for their intended use, the costs
of dismantling and removing the items and restoring the site on which they are located, and
borrowing costs on qualifying assets.
Major spare parts and stand-by equipment qualify as property and equipment when the Globe
Group expects to use them during more than one period. Similarly, if the spare parts and
servicing equipment can be used only in connection with an item of property and equipment, they
are accounted for as property and equipment.
At the end of each reporting period, items of property and equipment are carried at cost less any
subsequent accumulated depreciation and impairment losses.
Subsequent expenditures relating to an item of property and equipment that have already been
recognized are added to the carrying amount of the asset when it is probable that future
economic benefits, in excess of the originally assessed standard of performance of the existing
asset, will flow to the Globe Group. All other subsequent expenditures are recognized as
expenses in the period in which those are incurred.
Depreciation is computed on the straight-line method based on the estimated useful lives (EUL) of
the assets as follows:
Years
Telecommunications equipment:
Tower 20
Switch 7-10
Outside plant, cellsite structures and improvements 10-20
Distribution dropwires and other wireline asset 2-10
Cellular equipment and others 3-15
Buildings 20-25
Cable systems (including IRUs) 5-20
Office equipment 3-7
Transportation equipment 3-5
Leasehold improvements are amortized over the shorter of their EUL or the corresponding lease
terms.
The EUL of property and equipment are reviewed annually based on expected asset utilization or
expected future technological developments and market behavior including shift in subscribers’
requirements.
Assets in the course of construction are carried at cost, less any recognized impairment loss. These
are transferred to the related property and equipment account when the construction or
installation and the related activities necessary to prepare the property and equipment for their
intended use are complete, and the property and equipment are ready for service. Depreciation
of these assets, on the same basis as other property and equipment, commences at the time the
assets are ready for their intended use.
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Gain or loss arising on the
disposal or retirement of an asset is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognized in the consolidated profit or loss.
Assets Held for Sale (AHFS)

An assets is classified as held for sale if its carrying amount will be recovered principally through a
sale transaction rather than through continuing use. This condition is regarded as met only when
the sale is highly probable and the asset is available for immediate sale in its present condition.
A sale is considered highly probable if:
• the appropriate level of management is committed to a plan to sell the asset;
• an active program to locate a buyer and complete the plan have been initiated;
• the asset is actively marketed for sale at a price that is reasonable in relation to its current fair
value; and
• the sale is expected to qualify for recognition as a completed sale within one year from the
date of classification, and actions required to complete the plan indicate that it is unlikely that
significant changes to the plan will be made or that the plan will be withdrawn.
Certain events or circumstances may extend the period to complete the sale beyond one year.
Provided that the delay is caused by events or circumstances beyond the Globe Group’s control
and there is sufficient evidence that the Globe Group remains committed to its plan to sell the
asset, such extension does not preclude an asset from being classified as held for sale.
Assets classified as held for sale are not depreciated. Instead, these are measured at lower of
carrying amount and fair value less cost to sell.
Assets and liabilities classified as held for sale are presented separately as current items in the
consolidated statement of financial position.
The Globe Group assesses whether the disposal group is a discontinued operation and presents it
separately in the profit or loss. A discontinued operation is a component that either has been
disposed of, or is classified as held for sale, and:
• represents a separate major line of business or geographical area of operations,

• is part of a single coordinated plan to dispose of a separate major line of business or
geographical area of operations or
• is a subsidiary acquired exclusively with a view to resale.
2.9 Intangible Assets
Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially recognized at cost.
Subsequent to initial recognition, intangible assets with finite useful lives are carried at cost less
accumulated amortization and accumulated impairment losses. Amortization is recognized on a
straight-line basis over their EUL. The EUL and amortization method are reviewed at the end of each
reporting period, with the effect of any changes in estimate being accounted for on a prospective
basis.
Internally-generated intangible assets

An internally-generated intangible asset arising from development (or from the development phase of
an internal project) is recognized if, and only if, all of the following conditions have been
demonstrated:
▪ technical feasibility of completing the intangible asset so that it will be available for use or sale;
▪ intention to complete the intangible asset and use or sell it;
▪ ability to use or sell the intangible asset;
▪ how the intangible asset will generate probable future economic benefits;
▪ availability of adequate technical, financial and other resources to complete the development and
to use or sell the intangible asset; and
▪ ability to measure reliably the expenditure attributable to the intangible asset during its
development.
The amount initially recognized for internally-generated intangible assets is the sum of the
expenditure incurred from the date when the intangible asset first meets the recognition criteria listed
above. Where no internally-generated intangible asset can be recognized, development expenditure is
recognized in the consolidated profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost less
accumulated amortization and accumulated impairment losses, on the same basis as intangible assets
that are acquired separately.
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognized separately from goodwill are
recognized initially at their fair value at the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at
cost less accumulated amortization and accumulated impairment losses, on the same basis as
intangible assets that are acquired separately.
Amortization of intangible asset is computed based on the EUL of the assets below:
Years
Software 3-10
Spectrum and franchise 10-59
Customer contracts 4
Merchant networks 4-21
Derecognition of Intangible assets

Intangible assets are derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Gain or loss arising on the disposal or
retirement of an asset is determined as the difference between the sales proceeds and the
carrying amount of the asset and is recognized in the consolidated profit or loss.
2.10 Investments in Joint Venture

A joint venture (JV) is a type of joint arrangement whereby the parties that have joint control of
the arrangement have rights to the net assets of the joint venture. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about
the relevant activities require unanimous consent of the parties sharing control.
The considerations made in determining joint control are similar to those necessary to determine
control over subsidiaries.
Investments in JV are measured initially at cost. Subsequent to initial recognition, the Globe
Group’s investments in its JV are accounted for using the equity method. Under the equity
method, the investments in JV are carried in the consolidated statements of financial position at
cost plus post-acquisition changes in the Globe Group’s share in net assets of the JV, less any
allowance for impairment losses. The consolidated profit or loss includes the Globe Group’s share
in the results of operations of its JV. Any change in OCI of those investees is presented as part of
the Globe Group’s OCI. In addition, where there has been a change recognized directly in the
equity of the JV, the Globe Group recognizes its share of any changes and presents this, when
applicable, directly in equity.
When the share of losses recognized under the equity method has reduced the investment to
zero, the Globe Group shall discontinue recognizing its share of further losses and apply it to
other interests that, in substance, form part of the Globe Group’s net investment in the JV. If the
JV subsequently reports profits, the Globe Group will resume recognizing its share of those profits
only after its share of the profits equal the share in losses not recognized.
The financial statements of the joint venture are prepared for the same reporting period as the
Globe Group.
The Globe Group discontinues the use of the equity method from the date when the investment
ceases to be a joint venture. When the Globe Group retains an interest in the former joint venture
and the retained interest is a financial asset, the Globe Group measures the retained interest at fair
value at that date and the fair value is regarded as its new carrying amount. The difference
between the carrying amount of the joint venture at the date the equity method was
discontinued, and the fair value of any retained interest and any proceeds from disposing of a part
interest in the joint venture is recognized in the consolidated profit or loss. In addition, the Globe
Group accounts for all amounts previously recognised in other comprehensive income in relation
to that joint venture on the same basis as would be required if that joint venture had directly
disposed of the related assets or liabilities.
When the Globe Group reduces its ownership interest in a joint venture but the Globe Group
continues to use the equity method, the Globe Group derecognizes the portion of the carrying
amount of the investment that was disposed of. The difference between the amount of
investment derecognized and any proceeds from disposing of a part interest in the joint venture is
included in the determination of the gain or loss on disposal of the joint venture.
The Globe Group's interest in a joint venture may also be reduced other than by an actual
disposal. Such a reduction in interest, which is commonly referred to as a deemed disposal, may
arise for a number of reasons, including:
▪ the investor does not take up its full allocation in a rights issue by the joint venture;
▪ the joint venture declares scrip dividends which are not taken up by the investor so that its
proportional interest is diminished;
▪ another party exercises its options or warrants issued by the joint venture; or
▪ the joint venture issues shares to third parties.
The Globe Group accounts for a deemed disposal on the same basis as a regular disposal. Any
resulting gain or loss on deemed disposal is recognized in the consolidated profit or loss.
Venture capital exemption
At initial recognition, the Globe Group, through venture capital subsidiary, may elect to measure
its investments in joint ventures at FVPL. Subsequent to the initial recognition, investments in joint
ventures at FVPL are carried at fair value with any resultant gain or loss recognized in profit or
loss.
2.11 Impairment of Nonfinancial Assets

At the end of each reporting period, the Globe Group assesses whether there is any indication
that any of its tangible and intangible assets with finite useful lives may have suffered an
impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss, if any.
When it is not possible to estimate the recoverable amount of an individual asset, the Group
estimates the recoverable amount of the cash-generating unit to which the asset belongs. When
a reasonable and consistent basis of allocation can be identified, assets are also allocated to
individual cash-generating units, or otherwise they are allocated to the smallest group of
cash-generating units for which a reasonable and consistent allocation basis can be identified.
Goodwill, intangible assets with indefinite useful lives and intangible assets not yet available for
use are tested for impairment annually and whenever there is an indication that the asset may be
impaired.
At the time of impairment testing a cash‑generating unit to which goodwill has been allocated,
there may be an indication of an impairment of an asset within the unit containing the goodwill.
In such circumstances, the asset is tested for impairment first, and an impairment loss is
recognized for that asset before testing for impairment the cash-generating unit containing the
goodwill.
Recoverable amount is the higher of fair value less costs to sell and value-in-use. In assessing
value-in-use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognized as an expense. Impairment losses
recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill
allocated to the units, and then to reduce the carrying amounts of the other assets in the unit
(group of units) on a pro rata basis.
Impairment losses recognized in prior periods are assessed at the end of each reporting period for
any indications that the loss has decreased or no longer exists. An impairment loss is reversed if
there has been a change in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortization, if no
impairment loss had been recognized. A reversal of an impairment loss is recognized as income.
Impairment losses relating to goodwill cannot be reversed in future periods.
2.12 Provisions
Provisions are recognized when the Globe Group has a present obligation, either legal or
constructive, as a result of a past event and it is probable that the Globe Group will be required to
settle the obligation through an outflow of resources embodying economic benefits, and the
amount of the obligation can be estimated reliably.
The amount of the provision recognized is the best estimate of the consideration required to
settle the present obligation at the end of each reporting period, taking into account the risks and
uncertainties surrounding the obligation. A provision is measured using the cash flows estimated
to settle the present obligation; its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
Provisions are reviewed at end of each reporting period and adjusted to reflect the current best
estimate.
If it is no longer probable that a transfer of economic benefits will be required to settle the
obligation, the provision should be reversed.
2.13 Revenue Recognition

Revenue is measured based on the consideration specified in an arrangement with the
customer, net of any amounts collected on behalf of third parties. The Globe Group recognizes
revenue upon transfer of control of a product or service to a customer.
In arrangements where another party is involved in providing the services, the Globe Group
assesses whether the nature of its promise in the arrangement is to provide the specified
services itself or to arrange for those services to be provided by the other party. If the promise
in an arrangement is to provide the services itself, the Globe Group recognizes the service
revenue at gross amount of consideration, with the amount remitted to the other party being
recognized as expense. However, if the promise is to simply arrange for those services to be
provided by the other party, the Globe Group recognizes service revenues equivalent only to
the extent of fees or commission to which it expects to be entitled in exchange for arranging
the services.
The Globe Group recognizes revenues from the following sources:
▪ Mobile services provided to subscribers at prepaid or postpaid arrangements such as Short
Messaging Services (SMS), voice, data communication, and other value added services
(Note 2.13.1);
▪ Wireline services provided to subscribers under subscription arrangements such as, voice,
corporate communication, and home broadband internet (Note 2.13.1);
▪ Inbound traffic originating from other telecommunications providers that terminates at
Globe Group’s network (Note 2.13.2);
▪ Inbound roaming due from foreign carriers (Note 2.13.3);
▪ Postpaid wireless communication services bundled with sale of handsets and other devices
(Note 2.13.4);
▪ Postpaid wireline communication services bundled with equipment installation services
(Note 2.13.5);
▪ Leases, interests and management fees (Note 2.13.7).
2.13.1 Mobile, broadband and corporate data services

Monthly service fees from mobile and wireline services under postpaid subscriptions are
recognized as service revenues throughout the subscription period.
Proceeds from over-the-air reloading channels and sale of prepaid cards are initially recognized
as deferred revenues. These are eventually credited to service revenues upon actual usage of
load value. Any unused remaining load value after the prescribed validity period are
immediately recognized as service revenue.
Subscription to promotional offer of SMS, voice, data communication, broadband internet, and
other services, are recognized as service revenue over the promotional period.
The Globe Group also provides corporate data services which include end-to-end data solutions
customized according to the needs of businesses to various customers. Similarly, monthly service
fees from corporate data services are recognized as revenues over time in the period the
services are rendered.
2.13.2 Inbound traffic

Inbound traffic originating from other telecommunications providers that terminates at the
Globe Group’s network are recognized as service revenues in the period the inbound traffic
occurred based on agreed rates with the other telecommunication providers.
2.13.3 Inbound roaming services

Service revenues from foreign carriers for inbound roaming transactions at the Globe Group’s
network are recognized in the period the inbound roaming connection is provided.
2.13.4 Postpaid mobile services and sale of mobile handsets and other devices
The Globe Group provides postpaid wireless communication services which are bundled with
sale of mobile handsets and other devices. The postpaid wireless communication services and
the sale of devices are considered two separate performance obligations which are capable of
being distinct and separately identifiable. The Globe Group allocates the contract consideration
between the two performance obligations based on their corresponding relative stand -alone
selling prices (SSP). The stand-alone selling prices are determined based on the expected cost
plus margin or adjusted market approach. The amount allocated to the postpaid wireless
communication service is recognized as service revenue over the period of subscription. Any
amount allocated to the sale of device is immediately recognized as non-service revenue upon
delivery of the item. Contract assets are recognized for the unbilled portion of the consideration
allocated to the sale of devices which are subsequently reduced as the monthly service fees are
billed to the subscribers.
2.13.5 Postpaid subscription to wireline services and equipment installation services

The Globe Group provides equipment installation services which are bundled with postpaid
wireline services. The promise to install the equipment is not considered as a distinct service from
the postpaid wireline service since the subscriber may not be able to benefit from the installation
services without the availability of the postpaid wireline services. Accordingly, the two services are
deemed as one performance obligation.
Service revenues from the equipment installation and postpaid wireline services are recognized
over time throughout the period of subscription. Outright payments received from the
installation services are initially recognized as contract liabilities and subsequently credited to
service revenues over the period of subscription.
2.13.6 Globe Rewards

The Globe Group operates Globe Rewards Program through which subscribers accumulate
points upon purchase of certain products and services. The Globe Rewards points may be
redeemed in the form of mobile promos, bill rebates, gadgets and gift certificates, or use the
earned points as cash at partner stores. The promise to provide free products and rebates to the
subscribers give rise to a performance obligation that is distinct and separately identifiable.
Accordingly, the Globe Group allocates a portion of the transaction price from its service
revenues to Globe Rewards points awarded to subscribers based on its relative stand -alone
selling price and the estimated number of points that will be eventually redeemed. The
stand-alone selling price per point is estimated based on the discount or free products to be
given when the points are redeemed by the subscriber. Amounts allocated to Globe Rewards
points are initially recognized as deferred revenues and subsequently credited as service
revenues either upon redemption of points or upon expiration.
2.13.7 Deferred contract costs

Costs to obtain contracts with customers that would not have been incurred if the contracts
were not obtained are recognized as deferred contract costs. Deferred contract costs are
subsequently recognized as expense on a straight-line basis over the contract period.
Costs to obtain contracts with customers that would have been incurred irrespective of whether
the contract were obtained are immediately recognized as expense.
Costs incurred to fulfill a contract are capitalized as deferred contract costs if all of the following
conditions are met:
▪ The costs relate directly to a contract or to an anticipated contract that the Globe Group can
specifically identify;
▪ The costs generate or enhance resources of the Globe Group that will be used in satisfying
performance obligation in the future; and
▪ The costs are expected to be recovered.
2.14 Staff Costs
2.14.1 Short-term benefits

The Globe Group recognizes a liability net of amounts already paid and an expense for services
rendered by employees during the accounting period. A liability is also recognized for the amount
expected to be paid under short-term cash bonus or profit sharing plans if the Globe Group has a
present legal or constructive obligation to pay this amount as a result of past service provided by
the employee and the obligation can be estimated reliably.
Short-term employee benefit obligations are measured on an undiscounted basis and are
expensed as the related service is provided.
2.14.2 Post Employment benefits

The Globe Group has a funded non-contributory defined benefit retirement plan. For the defined
benefit retirement plan, the cost of providing benefits is determined using the projected unit
credit method, with actuarial valuations being carried out at the end of each annual reporting
period. Remeasurements, comprising actuarial gains and losses, the effect of the changes to the
asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected
immediately in the consolidated statements of financial position with a charge or credit
recognized in other comprehensive income in the period in which they occur. Past service cost is
recognized in the consolidated profit or loss in the period of a plan amendment. Net interest is
calculated by applying the discount rate at the beginning of the period to the net defined benefit
liability or asset.
Defined benefit costs are categorized as follows:
▪ Service cost (including current service cost, past service cost, as well as gains and losses on
curtailments and settlements)
▪ Net interest expense or income
▪ Remeasurement
The Globe Group presents service cost and interest in the consolidated profit or loss in the line
item pension costs and finance cost, respectively. Curtailment gains and losses are accounted for
as past service costs.
The retirement benefit obligation recognized in the consolidated statements of financial position
represents the present value of the defined benefit obligation as reduced by the fair value of plan
assets.
Plan assets are assets held by a long-term employee benefit fund. Plan assets are not available to
the creditors of the Globe Group, nor can they be paid directly to the Globe Group. Fair value of
plan assets is based on market price information.
2.15 Share-based Payment Transactions
The cost of equity-settled transactions with employees and directors is measured by reference to
the fair value at the date at which they are granted. In valuing equity-settled transactions, vesting
conditions, including performance conditions, other than market conditions (conditions linked to
share prices), shall not be taken into account when estimating the fair value of the shares or share
options at the measurement date. Instead, vesting conditions are taken into account in
estimating the number of equity instruments that will vest.
The cumulative expense recognized for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has expired and the number of awards
that, in the opinion of the management of the Globe Group at that date, based on the best
available estimate of the number of equity instruments, will ultimately vest.
2.16 Borrowing Costs

Borrowing costs are capitalized if these are directly attributable to the acquisition, construction or
production of a qualifying asset. Capitalization of borrowing costs commences when the activities
for the asset’s intended use are in progress and expenditures and borrowing costs are being
incurred. Borrowing costs are capitalized until the assets are ready for their intended use.
Borrowing costs include interest charges and other related financing charges incurred in
connection with the borrowing of funds, as well as exchange differences arising from foreign
currency borrowings used to finance these projects to the extent that they are regarded as an
adjustment to interest costs.
Other borrowing costs are recognized as expense in the period in which these are incurred.
2.17 Leases
2.17.1 Globe Group as Lessee

The Globe Group assesses whether a contract is or contains a lease, at inception of the contract.
The Group recognizes a right of use asset and a corresponding lease liability with respect to all
lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a
lease term of 12 months or less) and leases of low value assets.
Short-term leases and leases of low value assets
For short-term leases and leases of low value assets, the Globe Group recognizes the lease
payments as an operating expense on a straight-line basis over the term of the lease unless
another systematic basis is more representative of the time pattern in which economic benefits
from the leased assets are consumed.
In identifying the lease term, the Globe Group takes into account the non-cancellable period for
which it has the right to use the underlying asset, together with all of the following:
▪ the periods covered by an enforceable option to extend the lease (if the Globe Group is
reasonably certain to exercise that option); and
▪ the periods covered by an enforceable option to terminate the lease (if the Globe Group is
reasonably certain not to exercise that option).
The lease terms in arrangements wherein both the lessor and the lessee has the right to terminate
the lease without incurring significant amount of penalty are excluded as part of the
non-cancellable period of the lease.
Lease Liabilities
The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted using the Globe Group’s incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
▪ Fixed lease payments (including in-substance fixed payments), less any lease incentives
receivable;
▪ Variable lease payments that depend on an index or rate, initially measured using the index or
rate at the commencement date;
▪ The amount expected to be payable by the lessee under residual value guarantees;
▪ The exercise price of purchase options, if the lessee is reasonably certain to exercise the
options; and
▪ Payments of penalties for terminating the lease, if the lease term reflects the exercise of an
option to terminate the lease.
The lease liability is presented as a separate line in the consolidated statement of financial
position. The lease liability is subsequently measured by increasing the carrying amount to reflect
interest on the lease liability (using the effective interest method) and by reducing the carrying
amount to reflect the lease payments made.
The Globe Group remeasures the lease liability (and makes a corresponding adjustment to the
related right of use asset) whenever:
▪ The lease term has changed or there is a significant event or change in circumstances
resulting in a change in the assessment of exercise of a purchase option, in which case the
lease liability is remeasured by discounting the revised lease payments using a revised
discount rate.
▪ The lease payments change due to changes in an index or rate or a change in expected
payment under a guaranteed residual value, in which cases the lease liability is remeasured by
discounting the revised lease payments using an unchanged discount rate (unless the lease
payments change is due to a change in a floating interest rate, in which case a revised
discount rate is used).
▪ A lease contract is modified and the lease modification is not accounted for as a separate
lease, in which case the lease liability is remeasured based on the lease term of the modified
lease by discounting the revised lease payments using a revised discount rate at the effective
date of the modification.
The Globe Group reassesses whether it is reasonably certain to exercise an extension option, or
not to exercise a termination option, upon the occurrence of either a significant event or a
significant change in circumstances that:
▪ Is within the control of the Globe Group; and
▪ Affects whether the Globe Group is reasonably certain to exercise an option not previously
included in its determination of the lease term, or not to exercise an option previously
included in its determination of the lease term.
The Globe Group revises the lease term if there is a change in the non-cancellable period of a
lease.
Right of Use Assets

The right of use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before the commencement day, less any lease incentives received and any
initial direct costs. They are subsequently measured at cost less accumulated depreciation and
impairment losses.
Right of use assets are depreciated over the shorter period of lease term and useful life of the
underlying asset. The depreciation starts at the commencement date of the lease.
The right of use assets are presented as a separate line in the consolidated statement of financial
position.
The Globe Group applies its accounting policy on impairment of non-financial assets in
determining whether a right of use asset is impaired and in accounting for any identified
impairment loss.
Sale and Leaseback
If the Globe Group (the seller-lessee) transfers the control of an asset to another entity (the buyer-
lessor) and leases that asset back from the buyer-lessor, the Globe Group accounts for the
transaction as sale and leaseback. Accordingly, the Globe Group derecognizes the carrying
amount of the asset sold; measures the lease liabilities arising from the leaseback at the present
value of the future lease payments discounted using the Globe Group’s incremental borrowing
rate; measures the right-of-use asset arising from the leaseback at the proportion of the previous
carrying amount of the asset that relates to the right of use retained by the seller-lessee; and
recognizes only the amount of any gain or loss that relates to the rights transferred to the buyer-
lessor.
2.18 Foreign Currency Transactions

Transactions in currencies other than functional currency of the entities included in the Globe Group
are recorded at the rates of exchange prevailing on the dates of the transactions. At the end of each
reporting period, monetary assets and liabilities that are denominated in currencies other than the
functional currencies of the entities in the Globe Group are retranslated at the rates prevailing at the
end of the reporting period. Gains and losses arising on retranslation are included in the
consolidated profit or loss for the year. Non-monetary assets and liabilities that are measured in
terms of historical cost in a foreign currency are not retranslated.
2.19 Income Tax

Income tax expense represents the sum of the current tax expense and deferred tax.
2.19.1 Current Income Tax

The current tax expense is based on taxable profit for the year. Taxable profit differs from net
profit as reported in the consolidated statements of comprehensive income because it excludes
items of income or expense that are taxable or deductible in other years and it further excludes
items that are never taxable or deductible.
2.19.2 Deferred Income Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the consolidated financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognized for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not
recognized if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference
arises from the initial recognition of goodwill.
Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the Group
is able to control the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible
temporary differences associated with such investments and interests are only recognized to the
extent that it is probable that there will be sufficient taxable profits against which to utilize the
benefits of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting period.
Current tax and deferred tax for the year are recognized in the consolidated profit or loss, except
when they relate to items that are recognized in other comprehensive income or directly in equity,
in which case, the current and deferred tax are also recognized in other comprehensive income or
directly in equity respectively. Where current tax or deferred tax arises from the initial accounting
for a business combination, the tax effect is included in the accounting for the business
combination.
2.20 EPS
Basic EPS is computed by dividing net income attributable to common stock by the weighted
average number of common shares outstanding, after giving retroactive effect for any stock
dividends, stock splits or reverse stock splits during the period.
Diluted EPS is computed by dividing net income attributable to common shareholders by the
weighted average number of common shares outstanding during the period, after giving
retroactive effect for any stock dividends, stock splits or reverse stock splits during the period, and
adjusted for the effect of dilutive options and dilutive convertible preferred shares. Outstanding
stock options will have a dilutive effect under the treasury stock method only when the average
market price of the underlying common share during the period exceeds the exercise price of the
option. If the required dividends to be declared on convertible preferred shares divided by the
number of equivalent common shares, assuming such shares are converted, would decrease the
basic EPS, then such convertible preferred shares would be deemed dilutive. Where the effect of
the assumed conversion of the preferred shares and the exercise of all outstanding options have
anti-dilutive effect, basic and diluted EPS are stated at the same amount.
2.21 Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:
▪ In the principal market for the asset or liability, or
▪ In the absence of a principal market, in the most advantageous market for the asset or
liability.
The principal or the most advantageous market must be accessible to the Globe Group.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability
to generate economic benefits by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.
The Globe Group uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input
that is significant to the fair value measurement as a whole:
▪ Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
▪ Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
▪ Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable
For the purpose of fair value disclosures, the Globe Group has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of the fair value hierarchy as explained above (see Note 31.3).
3 Adoption of New Standards, Amendments to Standards and Interpretations

The accounting policies adopted in the preparation and presentation of the consolidated financial
statements are consistent with prior years, except for the effects of the adoption of new and
revised accounting standards set out below.
3.1 Adoption of New and Revised Standards Effective January 1, 2023

In the current year, the Globe Group has applied a number of amendments to PFRS and
Interpretations issued by IASB that are effective for the annual period that begins on January 1,
2023. The adoption has not had any material impact on the disclosures or on the amounts
reported in the consolidated financial statements.
3.1.1 Amendments to PAS 12 Income Taxes—Deferred Tax related to Assets and Liabilities
arising from a Single Transaction
The amendments introduce a further exception from the initial recognition exemption. Under the
amendments, an entity does not apply the initial recognition exemption for transactions that give
rise to equal taxable and deductible temporary differences.
Depending on the applicable tax law, equal taxable and deductible temporary differences may
arise on initial recognition of an asset and liability in a transaction that is not a business
combination and affects neither accounting nor taxable profit. Following the amendments to PAS
12, an entity is required to recognize the related deferred tax asset and liability, with the
recognition of any deferred tax asset being subject to the recoverability criteria in PAS 12.
The amendments are effective for annual reporting periods beginning on or after January 1, 2023,
with earlier application permitted.
3.1.2 Amendments to PAS 1 Presentation of Financial Statements and PFRS Practice Statement
2 Making Materiality Judgements—Disclosure of Accounting Policies
The amendments change the requirements in PAS 1 with regard to disclosure of accounting
policies. The amendments replace all instances of the term ‘significant accounting policies’ with
‘material accounting policy information’. Accounting policy information is material if, when
considered together with other information included in an entity’s financial statements, it can
reasonably be expected to influence decisions that the primary users of general purpose financial
statements make on the basis of those financial statements.
The supporting paragraphs in PAS 1 are also amended to clarify that accounting policy
information that relates to immaterial transactions, other events or conditions is immaterial and
need not be disclosed. Accounting policy information may be material because of the nature of
the related transactions, other events or conditions, even if the amounts are immaterial. However,
not all accounting policy information relating to material transactions, other events or conditions
is itself material.
The amendments are effective for annual periods January 1, 2023 which shall be applied
retrospectively.
3.2 New and Revised Standards Not Yet Effective

At the date of authorization of these consolidated financial statements, the Globe Group has not
applied the following new and revised PFRS that have been issued but are not yet effective. The
Globe Group anticipates that the application of these new and revised standards will not have
material impact on the Globe Group’s consolidated financial statements in future periods.
3.2.1 Amendments to PFRS 16 Leases – Lease Liability in a Sale and Leaseback

The amendment to PFRS 16 add subsequent measurement requirements for sale and leaseback
transactions that satisfy the requirements in PFRS 15 to be accounted for as a sale. The
amendments require the seller-lessee to determine ‘lease payments’ or ‘revised lease payments’
such that the seller-lessee does not recognize a gain or loss that relates to the right of use
retained by the seller-lessee, after the commencement date.
The amendments do not affect the gain or loss recognized by the seller-lessee relating to the
particular or full termination of a lease. Without these new requirements, a seller-lessee may have
recognized a gain on the right of use it retains solely because of a remeasurement of the lease
liability (for example, following a lease modification or change in the lease term) applying the
general requirements in PFRS 16. This could have been particularly the case in a leaseback that
includes variable lease payments that do not depend on an index or rate.
The amendments are effective for annual reporting periods beginning on or after January 1, 2024.
Earlier application is permitted but required to disclose that fact.
4 Management’s Significant Accounting Judgments and Use of Estimates and

Assumptions
The preparation of the consolidated financial statements in conformity with PFRS requires
management to make judgments, estimates and assumptions that affect the amounts reported in
the consolidated financial statements and accompanying notes. The judgments, estimates and
assumptions used in the consolidated financial statements are based upon management’s
evaluation of relevant facts and circumstances as of the date of the consolidated financial
statements. Actual results could differ from such judgments, estimates and assumptions.
Judgments, estimates and assumptions are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances.
4.1 Critical Accounting Judgments
4.1.1 Contract Assets on Bundled Products

The Globe Group provides wireless communication services to subscribers which are bundled
with handset sales. Based on the Globe Group’s assessment, the performance obligations
from the wireless communication services and the sale of handsets are both capable of being
distinct and separately identifiable. Accordingly, the Globe Group allocates the total contract
consideration to the two performance obligations based on their corresponding relative SSP.
Contract asset is recognized for any unbilled amount allocated to the revenue from handset
sales.
4.1.2 Deferred Contract Costs

The Globe Group incurs certain commissions and installation costs in relation to the service
provided to its subscribers. Based on the Globe Group’s assessment, these costs are
incremental in obtaining and fulfilling its performance obligations. Accordingly, the Globe
Group recognizes deferred contracts costs which are amortized as expense throughout the
period of the subscription contract.
4.1.3 Determination of Whether the Globe Group is Acting as a Principal or an Agent

The Globe Group offers a full range of value-added services (VAS) such as mobile commerce
services, and content streaming and downloading, among others wherein another party is involved
in providing such services. In such case, the Globe Group assesses each arrangement and
determines whether the nature of its promise is to provide the specified services itself or to arrange
for those services to be provided by the other party.
If the promise in an arrangement is to provide the services itself, the Globe Group recognizes the
service revenue at gross amount of consideration. Otherwise, the Globe Group recognizes service
revenues equivalent only to the extent of fees or commission to which it expects to be entitled in
exchange for arranging the services.
4.1.4 Determination of lease term in lease agreements
The Globe Group has certain lease agreements with renewal options, which the Globe Group
applied judgment in evaluating its overall lease term. The Globe Group considered financial and
operational factors in determining whether it is reasonably certain that these renewal options will
be exercised.
4.2 Key Estimation Uncertainties
4.2.1 ECL Impairment on Subscribers Receivables and Contract Assets

When measuring ECL the Globe Group uses reasonable and supportable forward looking
information, which is based on assumptions for the future movement of different economic drivers
and how these drivers will affect each other. Loss given default is an estimate of the loss arising on
default. It is based on the difference between the contractual cash flows due and those that the
lender would expect to receive, taking into account cash flows from collateral and integral credit
enhancements.
Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate
of the likelihood of default over a given time horizon, the calculation of which includes historical
data, assumptions and expectations of future conditions.
An increase in ECL rates on subscribers receivables and contract assets would increase the loss
allowance recognized in the consolidated profit or loss.
Impairment loss recognized using ECL in 2023 and 2022 on subscribers receivable amounted to
₱3,416.76 million and ₱3,945.10 million (see Note 6), and contract assets amounted to ₱947.09
million and ₱723.17 million, respectively (see Notes 7.1 and 26).
4.2.2 Determination of SSP in arrangements with multiple performance obligations

In revenue arrangements involving multiple performance obligations, the transaction price is
allocated to each separate performance obligation based on the relative SSP of the goods or
services being provided to the customer. The best evidence of SSP is the price an entity charges
for that good or service when the entity sells it separately in similar circumstances to similar
customers. However, goods or services are not always sold separately. In such case, the SSP needs
to be estimated or derived by other means.
The Globe Group maximized the use of all available observable inputs and applied the expected
cost plus margin or adjusted market approach as the estimation method in determining the SSP
of the goods and services in arrangements with multiple performance obligations.
4.2.3 Inventory Obsolescence and Market Decline

The Globe Group, in determining the NRV, considers any adjustment necessary for obsolescence
which is generally provided for nonmoving items after a certain period. The Globe Group adjusts the
cost of inventory to the recoverable value at a level considered adequate to reflect market decline in
the value of the recorded inventories. The Globe Group reviews the classification of the inventories
and generally provides adjustments for recoverable values of new, actively sold and slow-moving
inventories by reference to prevailing values of the same inventories in the market. In assessing the
recoverability of inventories that are bundled with mobile services, the Globe Group also takes into
account the total cash flows from the bundled goods and services.
The amount and timing of recorded expenses for any period would differ if different estimates were
utilized. An increase in allowance for inventory obsolescence and market decline would decrease
the profit for the period, and decrease current assets.
Inventory obsolescence and market decline in 2023, 2022 and 2021 amounted to ₱399.50 million,
₱245.52 million, and ₱502.63 million, respectively (see Notes 9 and 26).
Inventories and supplies, net of allowances, amounted to ₱3,388.42 million and ₱3,881.68 million as
of December 31, 2023 and 2022, respectively (see Note 9).
4.2.4 EUL of Property and Equipment, Intangible Assets and Right of Use Assets
The useful life of each of the item of property and equipment, intangible assets and right of use
assets with finite useful lives is estimated based on the period over which the asset is expected
to be available for use. Such estimation is based on a collective assessment of industry practice,
internal technical evaluation and experience with similar assets and expected asset utilization
based on future technological developments, market behavior and limits on legal rights.
It is possible that future results of operations could be materially affected by changes in these
estimates brought about by changes in the factors mentioned. A reduction in the EUL of property
and equipment, intangible assets and right of use assets would increase the recorded
depreciation and amortization expense and decrease noncurrent assets.
The table below presents the carrying values of the Globe Group’s property and equipment,
intangible assets and right of use assets with finite useful lives as of December 31, 2023 and 2022:
Notes 2023 2022

(In Thousand Pesos)
Property and equipment - net 11 ₱227,618,631 ₱199,762,879
Right of use assets – net 13 69,538,796 37,108,116
Intangible assets - net 12 21,454,667 21,790,971
₱318,612,094 ₱258,661,966
4.2.5 Impairment of Non-financial Assets Other Than Goodwill

The Globe Group performs an impairment review when certain impairment indicators are present.
Determining the recoverable amounts of non-financial assets requires the Globe Group to make
estimates and assumptions on the cash flows expected to be generated from those assets. While
the Globe Group believes that the assumptions are appropriate and reasonable, significant
changes in the assumptions may materially affect the assessment of recoverable values and may
lead to impairment charges. Any resulting impairment loss could have a material adverse impact
on the financial position and results of operations.
The table below presents the carrying values of the Globe Group’s non-financial assets as of
December 31, 2023 and 2022:
Notes 2023 2022

(In Thousand Pesos)
Property and equipment - net 11 ₱334,408,653 ₱281,899,060
Right of use assets – net 13 69,538,796 37,108,116
Investments in joint ventures 14 55,335,717 52,137,978
Intangible assets - net (excluding Goodwill) 12 21,638,901 21,975,205
Advance payments to suppliers and
contractors 10.1 19,863,873 36,209,346
₱500,785,940 ₱429,329,705
Impairment loss recognized on property and equipment amounted to ₱92.44 million, nil and
₱1,155.69 million in 2023, 2022 and 2021, respectively (see Note 26).
4.2.6 Impairment of Goodwill

The Globe Group’s impairment test for goodwill is based on value in use calculations that use a
discounted cash flow model. The cash flows of the CGU are derived from the business plan for the
next five years and do not include restructuring activities that the Globe Group is not yet committed
to or significant future investments that will enhance the asset base of the CGU being tested. The
recoverable amount is most sensitive to the discount rate used for the discounted cash flow model
as well as the expected future cash inflows and the growth rate used for extrapolation purposes. As
of December 31, 2023 and 2022, the carrying value of goodwill amounted to ₱1,734.21 million and
₱3,107.37 million, respectively (see Note 12).
Impairment loss recognized on goodwill amounted ₱154.61 million in 2023 (see Note 26).
4.2.7 Deferred Income Tax Assets
The carrying amounts of deferred income tax assets are reviewed at each reporting date and
reduced to the extent that it is no longer probable that sufficient taxable income will be available to
allow all or part of the deferred income tax assets to be utilized.
As of December 31, 2023 and 2022, the combined gross deferred tax assets of the Globe Group
amounted to ₱32,443.48 million and ₱23,048.99 million, respectively (see Note 28).
4.2.8 Pension Benefits

The determination of the retirement obligation cost and retirement benefits is dependent on
the selection of certain assumptions used by independent actuaries in calculating such
amounts. Those assumptions include among others, discount rates and rates of compensation
increase. Actual results that differ from the assumptions are charged to other comprehensive
income and therefore, generally affect the equity and recorded obligation. While the Globe
Group believes that the assumptions are reasonable and appropriate, significant differences in
the actual experience or significant changes in the assumptions may materially affect the
pension and other retirement obligations.
The net pension liability as of December 31, 2023 and 2022 amounted to ₱2,718.31 million and
₱1,963.49 million, respectively (see Note 27.1).
4.2.9 Provisions and Contingencies

The Globe Group is currently involved in various legal proceedings and disputes in the ordinary
course of business. The estimate of the probable costs for the resolution of these claims has been
developed in consultation with internal and external counsel handling the Globe Group’s defense in
these matters and is based upon an analysis of potential results. The Globe Group believes that
sufficient provision has been recognized in the consolidated statements of financial position in
relation to these proceedings. It is possible, however, that future financial performance could be
materially affected by changes in the estimates or in the strategies relating to these proceedings.
The Globe Group’s provisions as of December 31, 2023 and 2022 amounted to ₱2,960.99 million
and ₱2,583.48 million, respectively (see Note 16).
4.2.10 Determination of incremental borrowing rates in lease agreements
The Globe Group entered into various lease agreements where the Right-of-use assets and
corresponding lease liabilities were measured at present value at initial recognition at interest
rate implicit in the lease, or if not determinable, the incremental borrowing rates. Incremental
borrowing rate is the rate that a lessee would have to pay to borrow over a similar term, and with
a similar security, the funds necessary to obtain an asset of a similar value to the right of use asset
in a similar economic environment.
The Globe Group uses published government bond rates as the risk free input plus a spread
adjustment using the Globe Group’s credit worthiness.
Lease liabilities amounted to ₱88,724.48 million and ₱54,231.60 million as of December 31, 2023
and 2022, respectively (see Note 13).
5 Cash and Cash Equivalents
Cash equivalents are short term highly liquid investments with insignificant risk of changes in
value. The cash and cash equivalents account consists of the following as of December 31:
2023 2022
(In Thousand Pesos)
Cash on hand and in banks ₱8,623,614 ₱12,699,740
Short-term money market placements 8,021,463 5,334,045
₱16,645,077 ₱18,033,785
As of December 31, 2022, Globe Group’s cash and cash equivalents included bank deposits
maintained by ECPay amounting ₱2,283.99 million, which are restricted for specific purposes to
meet obligations with merchants and partners. Total cash and cash equivalents of the Globe
Group net of the portion restricted for specific purposes amounted to ₱16,645.08 million and
₱15,749.79 million as of December 31, 2023 and 2022, respectively.
Cash in banks earn interest at respective bank deposit rates.

Interest income from cash and cash equivalents are as follows (see Note 21):
2023 2022 2021

(In Thousand Pesos)
Short-term money market placements ₱374,055 ₱130,153 ₱13,810
Cash in banks 75,980 9,650 5,946
₱450,035 ₱139,803 ₱19,756
The ranges of interest rates of the above placements are as follows:
2023 2022 2021

Placements:
PHP 0.001% to 5.45% 0.001% to 5.50% 0.001% to 1.65%
USD 0.001% to 5.00% 0.001% to 3.85% 0.001% to 0.40%
6 Trade receivables - net
This account consists of receivables from:
Notes 2023 2022

(In Thousand Pesos)
Subscribers ₱21,703,830 ₱24,563,706
Traffic settlements - net 31.2, 33.1 1,124,376 1,490,163
Dealers 814,033 390,847
Partners and merchants - 4,127,405
Others 3,984,796 4,088,275
27,627,035 34,660,396
Less allowance for impairment losses:
Subscribers 8,348,275 9,902,748
Traffic settlements and others 1,180,862 1,194,234
9,529,137 11,096,982
₱18,097,898 ₱23,563,414
Trade receivables are noninterest-bearing and are generally due within 30 to 60 days.
Subscriber receivables arise from wireless and wireline voice, data communications and
broadband internet services provided by the Globe Group under postpaid arrangements.
Receivable from partners and merchants is composed mainly of advances to partners for use as
pre-funding to other payment platform providers to support the transactions processed by ECPay
and receivables from wallets which pertains to advances made by ECPay to several merchants’
wallet as part of contractual terms.
Traffic settlement receivables are presented net of traffic settlement payables from the same
carrier (see Notes 31.2 and 33.1).
Others include trade receivables of non-telco subsidiaries and receivables from credit card
companies.
The following is a reconciliation of the changes in the allowance for impairment losses for trade
receivables as of December 31:
Other Traffic
Key Corporate Corporations Settlements
Consumer Accounts and SME and Others Total
(In Thousand Pesos)
2023
December 31, 2022 ₱6,548,008 ₱2,417,838 ₱936,902 ₱1,194,234 ₱11,096,982
Charges for the period (Note 26) 3,129,046 114,020 173,696 77,299 3,494,061
Write-offs and recoveries – net (4,019,281) (391,374) (560,580) (90,671) (5,061,906)
December 31, 2023 ₱5,657,773 ₱2,140,484 ₱550,018 ₱1,180,862 ₱9,529,137
2022
December 31, 2021 ₱5,807,651 ₱2,866,506 ₱1,000,738 ₱1,044,517 ₱10,719,412
Charges for the period (Note 26) 3,922,361 (221,476) 244,218 163,601 4,108,704
Write-offs and recoveries – net (3,182,004) (227,192) (308,054) (13,884) (3,731,134)
December 31, 2022 ₱6,548,008 ₱2,417,838 ₱936,902 ₱1,194,234 ₱11,096,982
7 Contract Assets and Liabilities
7.1 Contract Assets – net

The following table provides information about contract assets with customers:
2023 2022
(In Thousand Pesos)
Contract assets ₱6,287,211 ₱6,951,923
Allowance for impairment loss (63,616) (60,468)
₱6,223,595 ₱6,891,455
Movements in the contract assets for the periods are as follows:
Note 2023 2022

(In Thousand Pesos)
Contract assets
Balance at beginning of the year ₱6,951,923 ₱6,532,530
Additions during the year 6,888,421 7,944,131
Billed to subscribers during the year (6,609,194) (6,575,220)
Write-off (943,939) (949,518)
Balance at end of year ₱6,287,211 ₱6,951,923
Allowance for impairment loss
Balance at beginning of the year (60,468) (286,819)
Impairment loss 26 (947,087) (723,167)
Write-off 943,939 949,518
Balance at end of year (63,616) (60,468)
Contract assets - net ₱6,223,595 ₱6,891,455
The Globe Group provides wireless communication services to subscribers which are bundled
with sale of handsets and other devices. The Globe Group allocates the revenue based on the
SSP of each performance obligation. Contract assets are recognized for the unbilled portion
of revenue allocated to the sale of handset and other devices which will be reduced as the
monthly service fees are billed to the subscribers.
7.2 Contract Liabilities and Other Deferred Revenues
The following table provides information about the contract liabilities and other deferred
revenues:
2023 2022
(In Thousand Pesos)
Deferred revenue from wireless subscribers under
prepaid arrangements ₱3,868,765 ₱3,455,120
Advance monthly service fees 3,180,586 3,289,783
Contract liability from wireline services 159,887 395,009
Deferred revenue rewards 143,012 318,302
Others 567,352 414,369
7,919,602 7,872,583
Less current portion 7,919,602 7,576,050
Non current portion ₱- ₱296,533
The following table shows the roll forward analysis of contract liabilities from wireline services:
2023 2022
(In Thousand Pesos)
Contract liabilities
Balance at beginning of the year ₱395,009 ₱313,552
Additions during the year 224,422 585,288
Recognized as revenue during the year (459,544) (503,831)
Balance at end of year ₱159,887 ₱395,009
Deferred revenues from wireless subscribers under prepaid arrangements are recognized as
revenues upon actual usage of airtime value, consumption of prepaid subscription fees or
upon expiration of the unused load value.
Advance monthly service fees represent advance billings to postpaid subscribers arising from
contracts.
Deferred revenue rewards represent unredeemed customer award credit under customer
loyalty program.
Deferred revenues from wireless subscribers under prepaid arrangements, deferred revenue
rewards and advance monthly service fees are recognized as revenues within 12 months.
Contract liability from wireline services represents collected upfront fees for equipment
installation for which revenues are recognized over the subscription period.
8 Derivative Financial Instruments
The table below sets out information about the Globe Group’s derivative financial instruments and
the related fair values as of December 31:
2023
USD PHP
Notional Notional Derivative Derivative
Amount Amount Assets Liabilities
(In Thousands)
Derivative instruments designated as hedges
Cash flow hedges
Cross currency swaps $250,350 ₱- ₱1,477,883 ₱-
Principal only swaps 680,000 - 3,235,758 424,555
Derivative instruments not designated as hedges
Freestanding
Deliverable forwards 308,000 - 2,301 53,766
Non-deliverable forwards 26,158 - 1,022 3,861
₱4,716,964 ₱482,182
Less current portion 516,718 482,182
Non current portion ₱4,200,246 ₱-
2022
USD PHP
Notional Notional Derivative Derivative
Amount Amount Assets Liabilities
(In Thousands)
Derivative instruments designated as hedges
Cash flow hedges
Cross currency swaps $293,900 ₱- ₱1,919,832 ₱-
Principal only swaps 700,000 - 3,180,050 447,955
Derivative instruments not designated as hedges
Freestanding
Deliverable forwards 244,750 - 28,901 161,383
Non-deliverable forwards 10,000 - 551 -
₱5,129,334 ₱609,338
Less current portion 502,332 609,338
Non current portion ₱4,627,002 ₱-
The subsequent sections will discuss the Globe Group’s derivative financial instruments according
to the type of financial risk being managed and the details of derivative financial instruments that
are categorized into those accounted for as hedges and those that are not designated as hedges.
8.1 Derivative Instruments Accounted for as Hedges
The following sections discuss in detail the derivative instruments accounted for as cash flow
hedges.
• Currency Swaps and Cross Currency Swaps

The Globe Group entered into cross currency swap contracts and principal only swaps contract to
hedge the foreign exchange and interest rate risk on dollar loans. The cross currency swaps have a
notional amount of USD250.35 million and USD293.90 million as of December 31, 2023 and 2022,
respectively. Principal only swaps have a notional amount of USD680.00 million and USD700.00
million as of December 31, 2023 and 2022, respectively. The fair values of the currency swaps as of
December 31, 2023 and 2022 amounted to net asset of ₱4,289.09 million and ₱4,651.93 million,
respectively, of which ₱996.45 million and ₱1,181.50 million (net of tax), respectively is included in
“Other reserves” in the equity section of the consolidated statements of financial position (see
Note 20.8).
Swap costs arising from cross currency swaps recognized as financing cost amounted to ₱490.05
million, ₱1,140.45 million, and ₱1,422.74 million in 2023, 2022 and 2021, respectively (see Note
25).
8.2 Freestanding Derivatives

Freestanding derivatives that are not designated as hedges consist of currency forwards entered
into by the Globe Group. Fair value changes on these instruments are accounted for directly in
consolidated profit or loss.
As of December 31, 2023 and 2022, the Globe Group has USD308.00 million deliverable and
USD26.16 million non-deliverable currency forward contracts and USD244.75 million deliverable
and USD10.00 million non-deliverable currency forward contracts not designated as hedges,
respectively.
8.3 Hedge Effectiveness Results

As of December 31, 2023 and 2022, the effective fair value changes on the Globe Group’s cash flow
hedges that were deferred in equity amounted to loss of ₱996.45 million and loss of ₱1,181.50
million, net of tax, respectively (see Note 20.8). Derivatives designated as cash flow hedges for the
years ended December 31, 2023, 2022 and 2021 are fully effective with a hedge ratio of 1:1.
Accordingly, no hedge ineffectiveness was recognized in the consolidated profit or loss.
The distinction of the results of hedge accounting into “Effective” or “Ineffective” represent
designations based on PFRS 9 and are not necessarily reflective of the economic effectiveness of
the instruments.
8.4 Fair Value Changes on Derivatives
The net movements in fair value changes of all derivative instruments are as follows:
2023 2022
(In Thousand Pesos)
At beginning of year ₱4,519,996 ₱1,805,758
Net changes in fair value of derivatives:
Designated as cash flow hedges (Note 20.8) (852,889) 1,791,710
Not designated as cash flow hedges (131,114) 1,026,186
3,535,993 4,623,654
Fair value of settled instruments 698,789 (103,658)
At end of period ₱4,234,782 ₱4,519,996
Details of amounts reclassified from cash flow hedge reserve to profit or loss in relation to hedge
accounting transactions are shown below.
Notes 2023 2022 2021

(In Thousand Pesos)
Gain (loss) on derivative instruments – net (₱609,572) ₱4,771,614 ₱2,875,068
Swap costs 25 (490,046) (1,140,451) (1,422,735)
20.8 (₱1,099,618) ₱3,631,163 ₱1,452,333
9 Inventories and Supplies - net

This account consists of:
2023 2022
(In Thousand Pesos)
Handsets, devices and accessories ₱2,394,979 ₱1,820,147
Supplies 488,459 897,956
Broadband device 213,493 367,398
SIM cards and SIM packs 141,406 419,394
Modem and accessories 81,525 278,304
Call cards and others 68,558 98,483
₱3,388,420 ₱3,881,682
Breakdown of cost of inventories recognized as expense are as follows:
Note 2023 2022 2021

(In Thousand Pesos)
Cost of inventories sold ₱18,217,044 ₱17,691,677 ₱17,307,774
Repairs and maintenance 1,394,034 2,454,267 2,695,892
Inventory obsolescence 26 399,495 245,516 502,627
₱20,010,573 ₱20,391,460 ₱20,506,293
Cost of inventories sold and services consists of:
2023 2022 2021

(In Thousand Pesos)
Handsets, devices and accessories ₱16,611,417 ₱15,998,636 ₱14,981,788
SIM cards and SIM packs 557,551 444,163 379,689
Broadband device 428,700 975,646 1,658,903
Modems and accessories 167,053 117,358 176,996
Call cards and others 452,323 155,874 110,398
₱18,217,044 ₱17,691,677 ₱17,307,774
10 Prepayment and Other Assets
10.1 Prepayments and Other Assets - net

Notes 2023 2022

(In Thousand Pesos)
Advance payments to suppliers and contractors 33.2 ₱19,863,873 ₱36,209,346
Input VAT – net 6,590,446 4,913,168
Investment property 5,624,264 5,628,399
Non-trade receivables – net 10.2 5,383,670 2,426,933
Prepayments 5,155,106 5,419,247
Loans receivable from related parties 19.3 3,864,935 3,228,935
Investments in equity and debt securities 3,812,726 3,278,498
Deferred contract costs 10.3 1,676,459 3,066,871
Security deposits 1,570,430 1,481,582
Creditable withholding tax 961,370 2,037,171
Others 2,702,380 4,082,921
57,205,659 71,773,071
Non current portion ₱35,567,551 ₱52,066,929
Investment properties consist of land and building which are held to earn rentals and for capital
appreciation. Depreciation and amortization of investment properties amounted to ₱4.03 million,
₱4.75 million and ₱5.38 million in 2023, 2022 and 2021, respectively. (see Note 24).
The “Prepayments” account includes prepaid insurance, rent, maintenance, and licenses fees
among others.
Fair value gain (loss) from investment in equity securities recognized in consolidated OCI
amounted to ₱224.06 million, ₱2.49 million and ₱409.19 million in 2023, 2022 and 2021,
respectively (see Note 20.8).
10.2 Non-trade receivables - net
Non-trade receivables – net consists of:
Note 2023 2022

(In Thousand Pesos)
Due from related parties 19 ₱3,431,452 ₱833,227
Advances to employees 187,450 199,715
Others 1,838,283 1,484,006
5,457,185 2,516,948
Allowance for impairment loss (73,515) (90,015)
₱5,383,670 ₱2,426,933
10.3 Deferred Contract Costs

Deferred contract costs pertain to incremental costs incurred in the effort to obtain and fulfill
the contract with subscribers. Details are as follows:
2023 2022
(In Thousand Pesos)
Cost to obtain contracts with customers:
Commissions ₱810,328 ₱1,301,607
Cost to fulfill contracts with customers
Installation costs 866,131 1,765,264
₱1,676,459 ₱3,066,871
Deferred contract costs are capitalized and subsequently amortized on a straight-line basis over
the term of the subscription contract. Movements in the deferred contract costs for the period are
as follows:
2023 2022
(In Thousand Pesos)
Balance at beginning of the year ₱3,066,871 ₱3,095,958
Amounts capitalized during the period 1,776,589 3,581,678
Amounts recognized as expense (3,167,001) (3,610,765)
Balance at the end of the year ₱1,676,459 ₱3,066,871
11 Property and Equipment – net
The rollforward analysis of this account follows:
2023
Telecommunica Buildings, Land

tion and Leasehold Office Transportation Assets Under
Equipment Improvement Cable System Equipment Equipment Construction Total
(In Thousand Pesos)
Cost
At January 1, 2023 ₱391,346,252 ₱62,015,190 ₱25,865,366 ₱17,801,857 ₱4,174,885 ₱80,146,926 ₱581,350,476
Additions 1,696,999 146,662 31,748 269,988 689,070 94,333,493 97,167,960
Retirements/disposals (1,449,777) (151,220) (1,787,798) (1,371,674) (2,596) (68,257) (4,831,322)
Reclassifications 55,111,374 6,160,689 992,381 469,339 2,025 (62,735,808) -
Transferred to assets held for sale (1,688,053) (1,967,897) - (1,054) - - (3,657,004)
Disposal from deconsolidation of subsidiary (Note 14.2) (297,534) (25,144) - (6,863) (8,958) (27,945) (366,444)
Transferred to intangible assets (Note 12) - - - - - (6,821,523) (6,821,523)
Others (2,624) - (23,454) (39) 4 (2,258) (28,371)
At December 31, 2023 444,716,637 66,178,280 25,078,243 17,161,554 4,854,430 104,824,628 662,813,772
Accumulated Depreciation
and Amortization
At January 1, 2023 232,919,216 23,664,629 18,356,579 15,880,379 2,807,800 - 293,628,603
Depreciation and amortization (Note 24) 28,090,914 2,866,694 892,021 1,077,010 550,927 - 33,477,566
Retirements/disposals (879,722) (59,776) (1,473,550) (1,332,803) (2,017) - (3,747,868)
Reclassifications 49,911 (52,996) - 3,085 - - -
Transferred to assets held for sale (175,536) (89,171) - (351) - - (265,058)
Disposal from deconsolidation of subsidiary (Note 14.2) (64,361) (10,714) - (4,727) (4,020) - (83,822)
Others (1,192) - (11,016) (29) - - (12,237)
At December 31, 2023 259,939,230 26,318,666 17,764,034 15,622,564 3,352,690 - 322,997,184
Accumulated Impairment Losses
At January 1, 2023 5,713,051 106,409 - 3,352 - - 5,822,812
Write-off (414,877) - - - - - (414,877)
At December 31, 2023 5,298,174 106,409 - 3,352 - - 5,407,935
Carrying amount at December 31, 2023 ₱179,479,233 ₱39,753,205 ₱7,314,209 ₱1,535,638 ₱1,501,740 ₱104,824,628 ₱334,408,653
2022
Buildings, Land
Telecommunication and Leasehold Office Transportation Assets Under
Equipment Improvement Cable System Equipment Equipment Construction Total
(In Thousand Pesos)
Cost
At January 1, 2022 ₱378,911,917 ₱83,578,587 ₱25,123,841 ₱17,849,482 ₱3,564,802 ₱63,354,075 ₱572,382,704
Additions 914,780 57,929 116,404 214,937 617,706 84,778,001 86,699,757
Retirements/disposals (5,607,971) (277,042) (78,360) (156,418) (7,623) (47,827) (6,175,241)
Sale of data center business (Note 14.3) (853,740) (2,441,643) - (435,623) - - (3,731,006)
Reclassifications 44,085,939 15,290,415 - 827,494 - (60,203,848) -
Transferred to assets held for sale (26,164,153) (34,193,056) - (497,965) - (403,312) (61,258,486)
Transferred to intangible assets (Note 12) - - - - - (7,336,027) (7,336,027)
Others 59,480 - 703,481 (50) - 5,863 768,774
At December 31, 2022 391,346,252 62,015,190 25,865,366 17,801,857 4,174,885 80,146,925 581,350,475
Accumulated Depreciation
and Amortization
At January 1, 2022 223,562,540 36,479,160 17,246,980 15,440,689 2,328,748 - 295,058,117
Depreciation and amortization (Note 24) 28,047,361 3,347,426 970,707 1,236,217 486,675 - 34,088,386
Retirements/disposals (4,673,933) (185,553) (35,371) (88,772) (7,623) - (4,991,252)
Sale of data center business (Note 14.3) (438,113) (326,096) - (360,000) - - (1,124,209)
Reclassifications 212,271 (214,991) - 2,720 - - -
Transferred to assets held for sale (13,815,924) (15,435,317) - (350,485) - - (29,601,726)
Others 25,014 - 174,263 10 - - 199,287
At December 31, 2022 232,919,216 23,664,629 18,356,579 15,880,379 2,807,800 - 293,628,603
Accumulated Impairment Losses
At January 1, 2022 6,309,344 163,451 - 3,352 - - 6,476,147
Write-off (596,293) (57,042) - - - - (653,335)
At December 31, 2022 5,713,051 106,409 - 3,352 - - 5,822,812
Carrying amount at December 31, 2022 ₱152,713,985 ₱38,244,152 ₱7,508,787 ₱1,918,126 ₱1,367,085 ₱80,146,925 ₱281,899,060
Assets under construction include intangible components of a network system which are reclassified to
depreciable intangible assets only when assets become available for use (see Note 12).
Investments in cable systems include the cost of the Globe Group’s ownership share in the capacity of
certain cable systems under a joint undertaking or a consortium or private cable set-up and indefeasible
rights of use (IRUs) which represents ownership share over various cable systems. It also includes the
cost of cable landing station and transmission facilities where the Globe Group is the landing party.
The Globe Group uses its borrowed funds to finance self-constructed property and equipment.
Borrowing costs incurred relating to these qualifying assets were included in the cost of property and
equipment using 5.24% and 4.34% capitalization rates in 2023 and 2022, respectively. The Globe Group’s
total capitalized borrowing costs amounted to ₱6,710.29 million and ₱3,734.10 million in 2023 and
2022, respectively (see Note 17).
In 2021, the Globe Group recognized ₱1,014.19 million impairment loss on telecommunications
equipment damaged by super typhoon Odette that hit southeastern Philippines in December 2021
(see Note 26).
The reconciliation of total additions to property and equipment and actual cash flows from acquisition
of property and equipment are shown below:
2023 2022 2021

(In Thousand Pesos)
Additions to property and equipment ₱97,167,960 ₱86,699,757 ₱123,415,445
Effect of movements in liabilities and prepayments (19,922,882) 15,019,856 (28,568,249)
Capitalized ARO (Note 18) - (2,477) (456,077)
Capitalized interest (Note 17) (6,710,285) (3,734,100) (1,640,440)
Cash flows from acquisition of property and equipment ₱70,534,793 ₱97,983,036 ₱92,750,679
Sale and Leaseback of Telecom Towers
On August 11, 2022, the Globe Group signed two sale and leaseback agreements with two tower
companies consisting of 5,709 telecom towers and related passive telecom infrastructure.
On September 23, 2022, the Globe Group signed another sale and leaseback agreement with a third
tower company for the portfolio composed of 1,350 telecom towers and related passive telecom
infrastructure.
On May 7, 2023, the Globe Group signed another sale and leaseback agreement with a fourth tower
company consisting of 447 telecom towers and related passive telecom infrastructure.
Accordingly, Telecom towers with net book value of ₱3,391.95 million and ₱31,656.76 million as of
December 31, 2023 and 2022, respectively, were reclassified from “Property and Equipment” to “Assets
classified as held-for-sale” under the current assets section in the Globe Group’s consolidated
statement of financial position.
The closing of the agreements will be on a staggered basis depending on the satisfaction of closing
conditions, according to the number of towers transferred.
CREATE.WONDERFUL 58
Information on the Globe Group’s sale of telecom towers were as follows:
2023 2022
Telecom towers sold 2,057 2,410

Cash consideration net of
direct costs ₱24,858,693 ₱29,940,218
Gain on sale on leaseback of
telecom towers - net 7,258,378 8,260,927
The leaseback arrangements for those telecom towers sold took effect at the date of sale
The gain recognized from the sale and leaseback transaction represents only the amount relating to
the rights in the underlying assets that were transferred to the buyer-lessor after considering the lease
liabilities recognized from the leaseback (see Note 13).
As of December 31, 2023, the Globe Group completed the sale of 4,467 telecom towers representing
60% of the total towers portfolio subject to sale.
As of December 31, 2023 and December 31, 2022, property and equipment with net book value of
₱15,791.25 million and ₱21,337.98 million, respectively, were continued to be classified as assets-
held-for-sale as the Globe Group remains committed to its plan to sell the telecom towers.
12 Intangible Assets and Goodwill - net

2023
Total
Application Other Intangible
Software and Intangible Assets and
Licenses Goodwill Assets Goodwill
Cost
At January 1 ₱64,408,624 ₱3,107,367 ₱6,446,732 ₱73,962,723

Additions 92,878 - - 92,878
Retirements/disposals (73,619) - - (73,619)
Transferred from property equipment (Note 11) 6,821,523 - - 6,821,523
Disposal from deconsolidation of subsidiary (Note 14.2) (65,023) (1,218,548) (453,040) (1,736,611)
Impairment (Note 26) - (154,614) - (154,614)
Others 178 - - 178
At December 31 71,184,561 1,734,205 5,993,692 78,912,458
Accumulated Amortization
At January 1 47,040,817 - 1,839,334 48,880,151
Amortization (Note 24) 6,672,018 - 307,138 6,979,156
Disposal from deconsolidation of subsidiary (Note 14.2) (55,617) - (214,615) (270,232)
Others 26 - - 26
At December 31 53,607,495 - 1,931,857 55,539,352
Carrying Amount at December 31, 2023 ₱17,577,066 ₱1,734,205 ₱4,061,835 ₱23,373,106
CREATE.WONDERFUL 59
2022
Total
Application Other Intangible
Software and Intangible Assets and
Licenses Goodwill Assets Goodwill
(In Thousand Pesos)
Cost
At January 1 ₱56,978,365 ₱3,107,367 ₱3,296,732 ₱63,382,464
Additions 233,869 - 3,150,000 3,383,869
Transferred from property equipment (Note 11) 7,336,027 - - 7,336,027
Adjustment (2,260) - - (2,260)
At December 31 64,408,624 3,107,367 6,446,732 73,962,723
At January 1 40,943,022 - 1,678,054 42,621,076
Amortization (Note 24) 6,122,580 - 161,280 6,283,860
Retirement/disposal (24,675) - - (24,675)
Others (110) - - (110)
At December 31 47,040,817 - 1,839,334 48,880,151
Carrying Amount at December 31 ₱17,367,807 ₱3,107,367 ₱4,607,398 ₱25,082,572
Application software licenses and other intangible assets

Other intangible assets consist of customer contracts, franchise, spectrum and merchant networks. As
of December 31, 2023 and 2022, there was no indication that the application software licenses and
other intangible assets are impaired.
Goodwill
The Globe Group recognized goodwill from business combination. Details of the Globe Group’s
goodwill are as follows:
2023 2022 2021

(In Thousand Pesos)
BTI ₱1,140,248 ₱1,140,248 ₱1,140,248
Yondu 540,523 540,523 540,523
Third Pillar Group 53,434 53,434 53,434
EC Pay (Note 14.2) - 1,218,548 1,218,548
Caelum (Note 26) - 154,614 154,614
₱1,734,205 ₱3,107,367 ₱3,107,367
The Globe Group conducts its annual impairment test of goodwill in the third fiscal quarter of each
year. The table below presents the Globe Group’s allocation of goodwill to the relevant CGUs for
impairment testing purposes:
2023 2022
Mobile communications CGU BTI and EC Pay BTI and EC Pay
Standalone CGU Caelum, Third Pillar and Yondu Caelum, Third Pillar and Yondu
CREATE.WONDERFUL 60
The recoverable amount of the CGUs are determined based on value in use calculations using cash flow
projections from business plans covering a five-year period. Based on the Goodwill impairment testing
performed in the third fiscal quarter of 2023 and 2022, the recoverable amounts of the CGUs where
the goodwill were allocated were substantially in excess of their carrying amounts.
Sensitivity Analysis
The Globe Group has determined that the recoverable amount calculations are most sensitive to
changes in assumptions on cash flow projections, discount rate, and verifiable industry growth rates.
In 2023 and 2022, the pre-tax discount rates applied to cash flow projections were 10.73% and
10.67% for mobile communications CGU and 14.00% for Yondu standalone CGU, respectively. The
cash flows beyond the five-year period were extrapolated using the average terminal growth rate for
telecommunication industry of 2.20%.
The Globe Group has conducted an analysis of the sensitivity of the impairment test to changes in the
key assumptions used to determine the recoverable amount of the CGU. Management believes that
any reasonably possible change in the key assumptions on which the recoverable amount of the CGU
is based would not result in impairment loss due to the substantial headroom.
Goodwill from Caelum
In 2023, management determined that the recoverable amount of goodwill related to Caelum is less
than its carrying value. Accordingly, the Globe Group recognized impairment loss amounting to
₱154.61 million (see Note 26).
13 Lease Commitments
13.1 Right of use assets – net

2023
Leased lines
Network Transportation Corporate and Data
Sites Equipment Office Stores Centers Total
Cost (In Thousand Pesos)
At January 1 ₱37,123,701 ₱2,195,465 ₱1,081,102 ₱352,800 ₱3,645,643 ₱44,398,711
Additions 37,440,200 337,798 826,277 26,893 2,045,538 40,676,706
Terminations (1,075,105) (851) - (13,642) (18,010) (1,107,608)
Transferred to assets held for sale (804,130) - - - - (804,130)
At December 31 72,684,666 2,532,412 1,907,379 366,051 5,673,171 83,163,679
At January 1 4,000,489 1,553,197 880,842 306,954 549,113 7,290,595
Depreciation (Note 24) 4,650,781 475,820 243,431 36,037 1,489,220 6,895,289
Terminations (415,925) (973) - (2,179) - (419,077)
Transferred to assets held for sale (141,924) - - - - (141,924)
At December 31 8,093,421 2,028,044 1,124,273 340,812 2,038,333 13,624,883
Carrying Amount at December 31 ₱64,591,245 ₱504,368 ₱783,106 ₱25,239 ₱3,634,838 ₱69,538,796
CREATE.WONDERFUL 61
2022
Leased lines
Transportation Corporate and Data
Network Sites Equipment Office Stores Centers Total
Cost (In Thousand Pesos)
At January 1 ₱22,295,418 ₱1,473,558 ₱1,079,839 ₱321,962 ₱2,666 ₱25,173,443
Additions 29,527,878 721,907 1,263 32,825 3,642,977 33,926,850
Terminations (332,500) - - (1,987) - (334,487)
Transferred to assets held
for sale (14,367,095) - - - - (14,367,095)
At December 31 37,123,701 2,195,465 1,081,102 352,800 3,645,643 44,398,711
At January 1 3,485,219 1,092,872 646,815 258,859 2,666 5,486,431
Depreciation (Note 24) 3,987,410 460,325 234,027 48,095 546,447 5,276,304
Terminations (124,371) - - - - (124,371)
Transferred to assets held
for sale (3,347,769) - - - - (3,347,769)
At December 31 4,000,489 1,553,197 880,842 306,954 549,113 7,290,595
Carrying Amount at
December 31 ₱33,123,212 ₱642,268 ₱200,260 ₱45,846 ₱3,096,530 ₱37,108,116
Network sites leases include ground lease occupied by self constructed tower assets, Tower leases
from sale and leaseback arrangements with Tower Companies and Tower Leases from Build to Suite
arrangement with Tower Companies.
Sale and Leaseback of Telecom Towers
As disclosed in Note 11 – Property and Equipment, the Globe Group and the tower companies signed
a sale and leaseback agreements consisting of 7,506 telecom towers and related passive telecom
infrastructure and has agreed to leaseback the telecom towers sold in the transaction for an initial
period of 15 years with option to extend as agreed by the parties.
Accordingly, the corresponding ROU assets covering the ground leases with net book value of
₱662.21 million and ₱11,019.33 million as of December 31, 2023 and 2022, respectively, were
reclassified from “ROU assets” to “Assets classified as held-for-sale” under the current assets section in
the Globe Group’s consolidated statement of financial position.
The leaseback arrangements for those telecom towers sold took effect at the date of sale. Information
on the Globe Group’s leaseback arrangements follows:
2023 2022
(In Thousand Pesos)
No. of Telecom Towers 2,057 2,410
Recognition of lease liabilities ₱18,312,907 ₱24,765,816
Recognition of ROU assets 10,594,340 14,730,939
The recognition of additional ROU assets represents only the rights retained by the Globe Group over
the telecom towers leased back from the tower companies.
As of December 31, 2023 and 2022, ROU assets with remaining net book value of ₱4,623.07 million
and ₱6,610.93 million, respectively, were continued to be classified as assets-held-for-sale as the
Globe Group remains committed to its plan to sell the telecom towers.
CREATE.WONDERFUL 62
13.2 Lease liabilities
The following table provides the lease liabilities in relation to leased assets:
2023 2022
(In Thousand Pesos)
Network sites ₱84,180,567 ₱50,200,277
Transportation Equipment 479,221 595,458
Corporate Office 714,477 173,041
Stores 27,169 53,670
Leased lines and Data Centers 3,323,048 3,209,151
88,724,482 54,231,597
Non current portion ₱82,825,056 ₱49,709,159
Network sites consist of telecom towers and ground leases.

2023
Leased
Lines and
Transportation Corporate Data
Network Sites Equipment Office Stores Centers Total
(In Thousand Pesos)
At January 1, 2023 ₱50,200,277 ₱595,458 ₱173,041 ₱53,670 ₱3,209,151 ₱54,231,597

Additions 45,158,767 337,798 826,277 26,893 2,045,538 48,395,273
Interests (Note 25) 4,639,213 25,278 16,289 2,511 183,951 4,867,242
Settlements (12,919,076) (479,274) (301,130) (46,665) (2,095,249) (15,841,394)
Terminations (2,898,614) (39) - (9,240) (20,343) (2,928,236)
At December 31, 2023 ₱84,180,567 ₱479,221 ₱714,477 ₱27,169 ₱3,323,048 ₱88,724,482
2022
Leased lines
Network Transportation Corporate and Data
Sites Equipment Office Stores Centers Total
(In Thousand Pesos)
At January 1, 2022 ₱19,039,104 ₱347,678 ₱423,384 ₱69,182 ₱- ₱19,879,348

Additions 39,562,755 721,907 1,263 32,825 3,642,977 43,961,727
Interests (Note 25) 1,492,604 22,651 9,819 4,226 139,672 1,668,972
Settlements (5,497,169) (496,778) (261,425) (50,090) (573,498) (6,878,960)
Terminations (4,397,017) - - (2,473) - (4,399,490)
At December 31, 2022 ₱50,200,277 ₱595,458 ₱173,041 ₱53,670 ₱3,209,151 ₱54,231,597
CREATE.WONDERFUL 63
The table below presents the maturity profile of the Globe Group’s lease liabilities using undiscounted
cash flows of future lease payments.
2023
More than 1 year

but not more than More than 5
1 year 5 years years Total
(In Thousand Pesos)
Network Sites ₱9,902,271 ₱37,882,764 ₱81,987,719 ₱129,772,754
Transportation equipment 309,413 174,251 - 483,664
Corporate office 348,183 400,246 38,231 786,660
Stores 16,707 11,593 3,055 31,355
Leased lines and Data Centers 1,256,723 2,309,437 - 3,566,160
₱11,833,297 ₱40,778,291 ₱82,029,005 ₱134,640,593
2022
More than 1 year

but not more than More than
1 year 5 years 5 years Total
(In Thousand Pesos)
Network Sites ₱5,191,506 ₱18,632,208 ₱37,680,548 ₱61,504,262
Transportation equipment 347,752 265,994 - 613,746
Corporate office 147,179 29,739 113 177,031
Stores 39,340 29,681 5,228 74,249
Leased lines and Data Centers 853,580 2,737,669 - 3,591,249
₱6,579,357 ₱21,695,291 ₱37,685,889 ₱65,960,537
As of December 31, 2023 and 2022, the portion of the lease liabilities related to ROU assets that are
reclassified to assets classified as held-for-sale amounted to ₱4.60 billion and ₱6.37 billion. Such
liabilities will remain to be the Globe Group’s liability until the closing conditions on the transfer of
assets are met, on which date, these liabilities will be pre-terminated.
13.3 Short-term Leases and Leases of Low Value Assets
Short-term leases and leases of low-value assets charged as operating expenses in the consolidated
profit or loss amounted to ₱2,828.28 million, ₱2,794.32 million and ₱4,274.33 million as of
December 31, 2023, 2022 and 2021, respectively (see Note 23).
CREATE.WONDERFUL 64
14 Investments in joint ventures
This account consists of the following as of December 31:
2023 2022
(In Thousand Pesos)
Vega ₱34,177,005 ₱34,079,880

Mynt 11,534,484 9,164,732
GSG 8,612,590 8,282,539
TechGlobal 291,443 258,083
Gogoro Philippines, Inc. 234,135 -
Bridge Mobile Pte. Ltd (BMPL) 53,103 55,501
Telecommunications Connectivity, Inc. (TCI) 42,579 40,462
Others 390,378 256,781
₱55,335,717 ₱52,137,978
Details of the Globe Group’s investments in joint venture and the related percentages of ownership as
of December 31 are shown below:
Country of
Incorporation Principal Activities 2023 2022
Joint Ventures
VTI Philippines Telecommunications 50% 50%
BAHC Philippines Holding company 50% 50%
BHC Philippines Holding company 50% 50%
Konsulta Philippines Health hotline facility 46% 46%
TechGlobal Philippines Installation and management of
data centers 49% 49%
Mynt Philippines Holding company 36% 36%
BMPL Singapore Mobile technology infrastructure
and common service 10% 10%
TCI Philippines Telecommunications 33% 33%
Rush Philippines Cloud-based solutions 49% 49%
PureGo* Philippines E-commerce platform 50% 50%
GSG** Philippines Data centers management 50% 50%
Gogoro*** Philippines E-vehicle and battery swapping 49% -
GoLearn**** Philippines Web development education 49% -
*Ceased operations on February 15, 2023
** A subsidiary of Globe Group until March 31, 2022 (See Note 14.3)
***Incorporated on June 5, 2023 (See Note 14.7)
****Incorporated on July 7, 2023
CREATE.WONDERFUL 65
Equity share in net (loss) income from investment in joint ventures are as follows:
2023 2022 2021

(In Thousand Pesos)
Investments in joint ventures:
Mynt ₱2,369,752 ₱808,251 (₱173,966)
GSG 330,051 214,419 -
Vega 28,176 169,542 1,040,322
TechGlobal 33,360 50,372 57,099
TCI 2,117 1,576 (1,114)
BMPL (2,107) (603) 1,025
Others (546,588) (160,355) (41,831)
₱2,214,761 ₱1,083,202 ₱881,535
Investment in joint ventures share in other comprehensive income are as follows:
Note 2023 2022 2021

(In Thousand Pesos)
Investments in joint ventures:
Vega ₱68,949 ₱17,854 ₱42,349
BMPL (291) 5,276 2,980
20.8 ₱68,658 ₱23,130 ₱45,329
The movement in investments in joint ventures are as follows:
Notes 2023 2022

(In Thousand Pesos)
Costs
At January 1 ₱57,279,133 ₱48,891,949
Additional capital contributions during the year
Investment in GSG 14.3 - 100,000
Investment in Gogoro 14.7 234,135 -
Others 14.8 515,255 485,530
Fair value adjustment on retained interest on investment in 14.3
GSG - 7,968,120
Gain on deemed sale of investment in Konsulta 22 - 26,410
Disposal - (192,876)
Others 164,930 -
At December 31 58,193,453 57,279,133
Accumulated Equity in Net Losses
At January 1 (5,531,499) (6,689,946)
Equity share in net income 2,214,761 1,083,202
Disposal - 75,245
At December 31 (3,316,738) (5,531,499)
Other Comprehensive Income
At January 1 390,344 367,214
Equity share in currency translation adjustment 20.8 (291) 5,276
Equity share in investment in equity securities 20.8 63,823 27,235
Equity share in retirement obligation 20.8 5,126 (9,381)
At December 31 459,002 390,344
Carrying Value at December 31 ₱55,335,717 ₱52,137,978
CREATE.WONDERFUL 66
The table below presents the summarized financial information lifted from the unaudited statutory
financial statements of the Globe Group’s investments in joint ventures:
2023
Vega Mynt TechGlobal BMPL GSG TCI Others

(In Thousand Pesos)
Statements of Financial
Position:
Current assets ₱4,380,498 ₱119,147,606 ₱489,807 ₱685,276 ₱5,377,345 ₱125,464 ₱392,228
Noncurrent assets 43,882,075 3,060,445 144,364 21,774 9,270,630 37,316 644,384
Current liabilities 2,174,393 94,080,037 38,629 165,833 2,584,107 35,044 641,452
Noncurrent liabilities 9,560,468 252,965 761 10,191 1,536,753 - 4,400
Equity attributable to Parent
Company 32,704,521 27,875,049 594,781 531,026 10,527,115 127,736 390,760
Statements of
Comprehensive Income:
Revenue 4,343,829 39,921,069 189,213 447,722 2,212,362 70,176 321,943
Costs and expenses (2,966,879) (32,641,250) (103,549) (468,786) (1,301,188) (63,330) (932,098)
Income before tax 1,376,950 7,279,819 85,664 (21,064) 911,174 6,846 (610,155)
Income tax (389,346) (610,024) (17,583) - (251,072) (495) -
Profit (Loss) for the period 987,604 6,669,795 68,081 (21,064) 660,102 6,351 (610,155)
Other comprehensive
income (loss) 137,896 - - (2,920) - -
Total comprehensive income ₱1,125,500 ₱6,669,795 ₱68,081 (₱23,984) ₱660,102 ₱6,351 (₱610,155)
2022
Vega Mynt TechGlobal BMPL GSG TCI Others
(In Thousand Pesos)
Statements of Financial
Position:
Current assets ₱4,681,213 ₱90,973,050 ₱418,251 ₱738,281 ₱4,623,042 ₱110,492 ₱279,621
Noncurrent assets 43,396,208 1,921,715 161,757 28,438 6,643,275 46,664 330,651
Current liabilities 2,260,029 71,584,820 32,533 192,897 1,007,637 35,771 257,424
Noncurrent liabilities 9,649,824 104,692 20,774 18,815 391,643 - -
Equity attributable to Parent
Company 32,510,271 21,205,252 526,701 555,008 9,867,037 121,385 352,848
Statements of
Comprehensive Income:
Revenue 4,033,429 24,517,108 255,180 401,868 1,366,167 96,300 376,455
Costs and expenses (2,637,676) (22,098,153) (128,204) (407,899) (796,031) (91,120) (618,012)
Income before tax 1,395,753 2,418,955 126,976 (6,031) 570,136 5,180 (241,557)
Income tax (381,608) (144,087) (24,177) - (141,298) (453) -
Profit (Loss) for the period 1,014,145 2,274,868 102,799 (6,031) 428,838 4,727 (241,557)
Other comprehensive
income (loss) 35,706 - - 52,760 - - -
Total comprehensive income ₱1,049,851 ₱2,274,868 ₱102,799 ₱46,729 ₱428,838 ₱4,727 (₱241,557)
14.1 Investment in Vega

On May 30, 2016, Globe Telecom’s BOD, through its Executive Committee, approved the signing of a
Sale and Purchase Agreement (SPA) and other related definitive agreements for acquisition of 50%
equity interest in the telecommunications business of San Miguel Corporation (SMC), Schutzengel
Telecom, Inc. and Grace Patricia W. Vilchez-Custodio (the “Sellers”; SMC being the major seller)
through their respective subsidiaries namely, VTI, BAHC and BHC, respectively (the Acquirees). The
remaining 50% equity stake in VTI, BAHC and BHC was acquired by Philippine Long Distance
Telephone Company (PLDT) under similar definitive agreements.
CREATE.WONDERFUL 67
VTI owns an equity stake in Liberty Telecom Holdings, Inc. (LIB), a publicly-listed company in the
Philippine Stock Exchange. It also owns, directly and indirectly, equity stakes in various enfranchised
companies, including Bell Telecommunication Philippines, Inc. (Bell Tel), Eastern Telecom Philippines,
Inc. (Eastern Telecom), Cobaltpoint Telecommunication, Inc (formerly Express Telecom, Inc.), and Tori
Spectrum Telecom, Inc., among others.
The acquisition provided Globe Telecom an access to certain frequencies assigned to Bell Tel in the
700 Mhz, 900 Mhz, 1800 Mhz, 2300 Mhz and 2500 Mhz bands through a co-use arrangement
approved by the NTC on May 27, 2016.
The memorandum of agreement between Globe and PLDT provides for both parties to pool resources
and share in the profits and losses of the companies on a 50%-50% basis with a view to being
financially self-sufficient and able to operate or borrow funds without recourse to the parties.
Notional goodwill recognized as part of investment in Vega amounted to ₱17.8 billion as of
December 31, 2023 and 2022.
The table below presents the additional financial information of Vega:
2023 2022
(In Thousand Pesos)
Items in the Statements of Financial Position
Cash and cash equivalents ₱2,386,845 ₱2,732,729
Current financial liabilities, excluding trade and other
payables and provisions - -
Non-current financial liabilities, excluding trade and other
Items in the Statements of Comprehensive Income

Depreciation and amortization ₱870,912 ₱755,076
Interest income 111,355 45,381
Interest expense - -
14.2 Investment in Mynt

Mynt is engaged in purchasing, subscribing, owning, holding and assigning real and personal property,
shares of stock and other securities. Mynt holds 100% ownership interest on Fuse Lending Inc. (Fuse)
and G-Xchange, Inc. (GXI). Fuse operates as a lending company. GXI is registered with Bangko Sentral
ng Pilipinas (BSP) as a remittance agent and electronic money issuer. GXI handles the electronic
payment and remittance service using the Globe Group’s network as platform under GCash brand.
In 2021, Globe Group made an additional investment to Mynt amounting to ₱1,508.16 million.
In 2020, Mynt has attracted fresh capital investment from ASP Philippines LP, a limited partnership
fund managed by investment firm Bow Wave Capital Management (“Bow Wave”), to further spur the
growth of financial inclusion and the digitization of payments and financial services in the Philippines.
Mynt raised over $175 million in fresh capital from Bow Wave and its existing shareholders in multiple
tranches, with post-money valuation of the final tranches at close to $1 billion.
CREATE.WONDERFUL 68
Bow Wave’s capital infusion resulted in dilution of Globe Group’s ownership in Mynt from 46% to 40%.
Accordingly, gain on deemed sale amounting to ₱2,042.44 million was recognized in profit or loss.
In 2021, Mynt has raised over $300 million in funding, valuing Mynt at over $2 billion. The investment
round was led by global investment giant Warburg Pincus, New York-based global private equity and
venture capital firm Insight Partners, and Bow Wave, one of Mynt’s existing investors. The round also
includes participation from Itai Tsiddon and Amplo Ventures as well as capital from Globe and Ayala.
The investment round resulted in dilution of Globe Group’s ownership in Mynt from 40% to 36%.
Accordingly, gain on deemed sale amounting to ₱4,344.04 million was recognized in profit or loss
(see Note 22)
Notional goodwill recognized as part of investment in Mynt amounted to ₱1,630.59 million as of
The table below presents the additional financial information of Mynt:
2023 2022
(In Thousand Pesos)
Items in the Statements of Financial Position
Cash and cash equivalents ₱76,196,233 ₱51,703,515
payables and provisions 82,748,774 51,573,579

Interest income 1,203,710 298,036
Interest expense 23,027 6,545
Share Purchase Agreements
On September 8, 2023, Mynt entered into a definitive agreement with AB Capital & Investment
Corporation, an entity controlled by a member of the Board of Directors of Globe, to acquire up to a
50.0% equity stake in AB Capital Securities, Inc (“ABCSI”). Mynt has closed the first Investment Tranche
as of September 15, 2023 amounting to ₱37.50 million and currently owns 7.5% of ABCSI.
On September 29, 2023, Globe Telecom entered into a Share Purchase Agreement with Mynt for the
sale of Globe’s 77% investment in ECPay for a total consideration of ₱2,310.00 million.
The closing of the transaction and actual transfer of ownership is still subject to the Philippine
Competition Commission (PCC) approval however, certain terms and conditions in the Share Purchase
Agreement considerably constrains Globe’s exposures and rights to variable returns from ECPay’s
operations.
Accordingly, Globe ceased to consolidate ECPay’s financial statements as of September 29, 2023.
Total assets and liabilities of ECPay as of the date of sale amounted to ₱7,986.27 million and
₱5,752.94 million, respectively, including cash and cash equivalents of ₱2,457.22 million and goodwill
of ₱1,218.55 million. Gain from deconsolidation of subsidiary was recognized in the consolidated
statements of comprehensive income amounting to ₱76.67 million for the year ended December 31,
2023.
CREATE.WONDERFUL 69
As of December 31, 2023, PCC review is still in progress.
14.3 Investment in Globe STT GDC, Inc. (GSG, formerly known as KarmanEdge)
Globe Group previously owned 100% interest in KarmanEdge and consolidated its net assets in the
consolidated financial statements. KarmanEdge is engaged in installing, building, owning, operating,
maintaining and managing data centers and other related infrastructure, information technology
equipment and facilities. Initial investment infused by the Globe Group amounted to ₱100.00 million.
On May 19, 2022, the SEC approved the amendment of KarmanEdge’s articles of incorporation which
effectively changes its corporate name to Globe STT GDC, Inc.
Sale of data center business
On March 31, 2022, The Globe Group formed a joint venture partnership with Ayala Corporation (AC),
and ST Telemedia Global Data Centres (STT GDC). Under the agreement, both STT GDC and AC shall
subscribe to new shares in KarmanEdge, Inc., a wholly owned subsidiary of the Globe Group that
houses its carved-out data center business. The capital infusion by the new partners resulted in a post-
money valuation of ₱16,136.24 million. Subsequent to the execution of the share subscription
agreement, Globe remained the largest shareholder with a 50% ownership, followed by STT GDC with
40% and AC taking up the balance. As part of the deal, The Globe Group received cash proceeds
amounting to ₱5,030.00 million.
The dilution of ownership interest resulted in a loss of control in KarmanEdge. Thereafter, the
investment in KarmanEdge was accounted for as an investment in joint venture since no single party
controls the arrangement and approvals of all parties are required before a decision can be passed.
The Globe Group accounted for this transaction as a sale of controlling interest of its data center
business which resulted in a gain amounting to ₱10,511.95 million. The initial carrying amount of the
Globe Group’s investment in KarmanEdge was measured at fair value amounting to ₱8,068.12 million,
equivalent to 50% of the post-money valuation.
CREATE.WONDERFUL 70
The final fair values of the identifiable assets and liabilities of Globe STT GDC, Inc. as of the date of the
acquisition are as follows:
Amount recognized
on acquisition
(In Million Pesos)
ASSETS
Current assets ₱9,056
Property and equipment 5,156
Other noncurrent assets 19
14,231
LIABILITIES
Current Liabilities 5,807
Noncurrent Liabilities 256
6,063
Total net assets at fair value ₱8,168
Intangible assets arising on acquisition
Customer relationship ₱1,689
Supplier relationship 5
1,694
Deferred tax liabilities (423) 1,271
₱9,439
Purchase consideration transferred ₱8,068

Share in identifiable assets and liabilities (50%) (4,720)
Notional goodwill arising on acquisition ₱3,348
The fair value amounts of supplier and customer relationship were determined by an independent
appraiser using multi period excess earnings method and replacement cost method.
The goodwill comprises the fair value of the expected synergies arising from the acquisition. For
goodwill impairment assessment, the cash generating unit is the wireline communications segment of
Globe Group.
CREATE.WONDERFUL 71
The table below presents the additional financial information of Globe STT GDC, Inc.:
December 31
2023 2022
Items in the Statements of Financial Position (In Thousand Pesos)
Cash and cash equivalents ₱1,984,521 ₱747,835

Interest expense 17,215 -
14.4 Investment in TechGlobal

On November 2, 2015, Innove and Techzone Philippines incorporated TechGlobal, a Joint Venture
Company, formed to install, own, operate, maintain and manage all kinds of data centers and to
provide information technology-enabled services and computer-enabled support services. Innove and
Techzone hold ownership interest of 49% and 51%, respectively. TechGlobal started commercial
operations in August 2017.
14.5 Investment in BMPL
Globe Telecom and other leading Asia Pacific mobile operators (JV partners) signed an Agreement in
2004 (JV Agreement) to form a regional mobile alliance, which will operate through a Singapore-
incorporated company, BMPL. The JV company is a commercial vehicle for the JV partners to build and
establish a regional mobile infrastructure and common service platform and deliver different regional
mobile services to their subscribers.
14.6 Investment in TCI

On January 17, 2020, Globe Telecom, Dito Telecommunity and Smart Communications incorporated a
joint venture company, Telecommunications Connectivity, Inc. (TCI) in line with the new mobile
number portability initiative of the government under RA 11202 also known as the "Mobile Number
Portability Act" ("the MNP Act”). As committed to the National Telecommunications Commission, TCI
commenced commercial operations on September 30, 2021 through the implementation of MNP
services.
TCI is expected to bring in the technical infrastructure to fulfill its primary function as a clearing house
for the three mobile operators to ensure the smooth implementation of number porting services.
14.7 Investment in Gogoro
On June 5, 2023, 917Ventures, Inc., Gogoro Network Pte. Ltd and Ayala Corporation formed Gogoro
Philippines Inc. (Gogoro), a Joint Venture company established to engage in, operate, conduct, and
maintain the business of importing, selling, distributing, operating, managing, and maintaining two-
wheeled and three-wheeled electric vehicles, for retail, and battery-swapping stations, and to provide
after-sales services. The Globe Group owns 49% of Gogoro. Initial investment infused by Globe Group
amounted to ₱234.14 million in 2023.
CREATE.WONDERFUL 72
14.8 Others
The Globe Group has investments in non-telco business offering healthcare and digital solutions,
among others. The Globe Group invested a total of ₱515.26 million, ₱485.53 million and ₱83.70
million of additional capital in 2023, 2022 and 2021, respectively.
15 Trade Payables and Accrued Expenses

Notes 2023 2022

(In Thousand Pesos)
Accrued project costs 33.2 ₱40,311,982 ₱34,857,379
Accrued expenses 23,423,651 23,660,696
Taxes payable 11,144,092 9,194,944
Trade payable 7,658,017 8,565,445
Liabilities to partners and merchants - 6,478,838
Traffic settlements - net 31.2, 33.1 575,373 734,750
Other creditors 4,551,143 4,888,745
₱87,664,258 ₱88,380,797
Traffic settlements payable are presented net of traffic settlements receivable from the same carrier
(see Note 31.2).
Accrued expenses consists of the following:
2023 2022
(In Thousand Pesos)
Professional and other contracted services ₱3,865,420 ₱4,884,272
Staff costs 4,199,796 3,467,481
Repairs and maintenance 3,811,311 3,614,101
Utilities, supplies and other administrative
expenses 2,294,850 1,385,497
Taxes and licenses 2,065,153 2,031,222
Selling, advertising and promotions 1,629,063 2,227,550
Lease 1,533,617 2,204,491
Interest on loans 1,518,500 1,221,173
Others 2,505,941 2,624,909
₱23,423,651 ₱23,660,696
CREATE.WONDERFUL 73
16 Provisions
Notes 2023 2022

(In Thousand Pesos)
Provisions for claims 26 562,574 457,545
Payments and reversals for claims 26 (185,057) (642,788)
At end of year ₱2,960,993 ₱2,583,476
Provisions pertain to probable liabilities related to various pending unresolved claims over the Globe
Group’s businesses such as provision for taxes and various labor cases.
The information usually required by PAS 37, Provisions, Contingent Liabilities and Contingent Assets, is
not disclosed as it may prejudice the outcome of these on-going claims and assessments. As of
December 31, 2023, the remaining claims are still being resolved.
17 Loans Payable
The Globe Group’s loans payable consists of the following:
2023 2022
(In Thousand Pesos)
Term Loans:
Peso ₱198,821,740 ₱175,220,081
Dollar 18,251,956 21,911,676
217,073,696 197,131,757
Retail bonds:
Peso - 2,993,904
Dollar 32,881,873 33,078,998
32,881,873 36,072,902
249,955,569 233,204,659
Net of current portion ₱213,162,613 ₱187,032,616
CREATE.WONDERFUL 74
Note 2023 2022

(In Thousand Pesos)
Cash items
Proceeds from long term borrowings 45,000,000 8,000,000
Proceeds from short term borrowings 63,250,000 82,020,167
Repayments of long term borrowings (20,214,691) (15,934,168)
Repayments of short borrowings (70,905,167) (56,175,000)
17,130,142 17,910,999
Non-cash items
Debt issuance cost (639,400) (219,072)
Amortization of debt issue cost 642,875 492,624
Disposal from deconsolidation of subsidiary
(Note 14.2) (2,156) -
Foreign exchange loss (gain) (380,551) 4,966,541
(379,232) 5,240,093
At end of year ₱249,955,569 ₱233,204,659
The maturities of loans payable at nominal values as of December 31, 2023 follow (in thousands):
Due in:
2024 ₱36,855,646
2025 19,083,440
2026 22,165,096
2027 22,448,218
2028 and thereafter 150,662,800
₱251,215,200
The interest rates and maturities of the above debts are as follows:
Maturities Interest Rates

Term Loans:
Peso 2024-2034 4.00% to 7.11% in 2023
2023-2033 1.63% to 7.11% in 2022
Dollar 2024-2027 5.36% to 8.10% in 2023

2023-2027 0.77% to 6.00% in 2022
Retail bonds
Peso 2023 5.28% in 2022
Dollar 2030-2035 3.13% to 3.75% in 2023

2030-2035 3.13% to 3.75% in 2022
CREATE.WONDERFUL 75
Total interest expense recognized in the consolidated profit or loss related to long-term debt
amounted to ₱6,723.60 million, ₱6,884.49 million and ₱6,372.37 million in 2023, 2022 and 2021,
respectively (see Note 25).
Total interest expenses capitalized as part of property and equipment amounted to ₱6,710.29 million
and ₱3,734.10 million in 2023 and 2022, respectively (see Note 11).
17.1 Term Loans and Corporate Notes

Globe Telecom has unsecured term loans which consist of dollar and peso-denominated term loans
subject to fixed and floating interest rates.
17.2 Retail Bonds
On July 17, 2013, Globe Telecom issued ₱7,000.00 million fixed rate bond. The amount comprises
₱4,000.00 million and ₱3,000.00 million bonds due in 2020 and 2023, with interest rate of 4.8875% and
5.2792%, respectively. The net proceeds of the issue were used to partially finance Globe Telecom’s
capital expenditure requirements in 2013.
The seven-year and ten-year retail bonds may be redeemed in whole, but not in part only, starting two
years for the seven-year bonds and three years for the ten-year bonds before the maturity date and on
the anniversary thereafter at a price ranging from 101.0% to 100.5% and 102.0% to 100.5%,
respectively, of the principal amount of the bonds and all accrued interest depending on the year of
redemption. In July 2020, Globe Telecom fully redeemed its ₱4,000.00 million retail bonds. In July
2023, Globe Telecom fully redeemed its ₱3,000.00 million retail bonds.
17.3 Unsecured Fixed Rate Notes
On July 23, 2020, Globe Telecom issued a USD 300 million 10-year and USD 300 million 15-year US
dollar denominated senior notes with a coupon rate of 2.5% and 3.0%, respectively. The notes are
unrated and have been listed on the Singapore Exchange Securities Trading Limited on July 24, 2020.
The net proceeds from the issue of the notes was used to finance Globe’s capital expenditures,
refinance maturing and/or existing obligations, and for general corporate requirements.
17.4 Loan Covenants
The loan agreements with banks and other financial institutions provide for certain restrictions and
requirements with respect to, among others, maintenance of financial ratios and percentage of
ownership of specific shareholders, incurrence of additional long-term indebtedness or guarantees
and creation of property encumbrances.
The financial tests under Globe Group’s loan agreements include compliance with the following ratios:
▪ Total debt* to equity not exceeding 3.0:1**
▪ Total debt* to EBITDA not exceeding 3.5:1;
▪ Debt service coverage exceeding 1.3 times; and
▪ Secured debt ratio not exceeding 0.2 times.
*Composed of loans payable and net derivative liabilities.
**No longer required as part of loan covenants following the redemption of ₱3,000.00 million retail bonds in July 2023.
As of December 31, 2023 and 2022, the Globe Group is not in breach of any loan covenants.
CREATE.WONDERFUL 76
18 Other Long-term Liabilities
2023 2022
(In Thousand Pesos)
Asset retirement obligation (ARO) ₱2,253,106 ₱2,689,423
Others 1,433,974 1,837,769
₱3,687,080 ₱4,527,192
ARO represents Globe Group’s estimated dismantling cost of property and equipment and obligation
to restore leased properties to their original condition. The rollforward analysis of the Globe Group’s
ARO follows:
Notes 2023 2022

(In Thousand Pesos)
Accretion expense during the year 25 8,250 187,760
Capitalized to property and equipment
during the year 11 - 2,477
Settlements and reversals (561,936) (1,245,143)
Remeasurements 117,369 446,490
At end of year ₱2,253,106 ₱2,689,423
Gain on settlement and remeasurement of ARO recognized in consolidated profit or loss amounted to
nil, ₱2.63 million and ₱74.43 million in 2023, 2022 and 2021, respectively (see Note 22).
19 Related Party Transactions

Parties are considered to be related to the Globe Group if they have the ability, directly or indirectly,
to control the Globe Group or exercise significant influence over the Globe Group in making financial
and operating decisions, or vice versa, or where the Globe Group and the party are subject to
common control or common joint control. Related parties may be individuals (being members of key
management personnel, significant shareholders and/or their close family members) or entities and
include entities which are under the significant influence of related parties exercising control or joint
control over the Globe Group, and post-employment benefit plan which are for the benefit of
employees of the Globe Group or of any entity that is a related party of the Globe Group.
The Globe Group, in their regular conduct of business, enter into transactions with their major
stockholders, AC and Singtel, joint ventures and certain related parties.
The Globe Group’s audit and related party transactions committee (Committee) reviews and approves
all covered related party transactions in accordance with the Globe Group’s corporate governance
policy. The Committee endorses the covered related party transactions to the Board of Directors for
final approval.
CREATE.WONDERFUL 77
The summary of balances arising from related party transactions for the relevant financial year follows (in thousand pesos):
2023
Amount of transaction Outstanding Balance
Costs and Cost and Amounts

Revenue and Expenses Expenses Cash and Owed by Amounts
Other charged to capitalized Cash Related Owed to
Note Income Profit or Loss as Asset Equivalents Parties Related Parties Terms Conditions
Entities with joint control
over the Company
Singtel 19.1 ₱336,003 ₱290,729 ₱- ₱- ₱65,655 ₱277,517 Interest-free, settlement in cash Unsecured, no impairment
AC 19.1 39,215 54,873 - - 23,505 1,745 Interest-free, settlement in cash Unsecured, no impairment
Jointly controlled entities
BMPL 19.2 - 20,142 - - - 2,784 Interest-free, settlement in cash Unsecured, no impairment
Mynt 19.2 64,767 3,523,508 - 320,141 2,758,838 - Interest-free, settlement in cash Unsecured, no impairment
Globe STT GDC, Inc. 19.2 240,601 - 123,104 - 652,110 263,137 Interest-free, settlement in cash Unsecured, no impairment
Other related parties

3-5 years, 4.25-6.00%, Unsecured, no impairment
GRP 19.3 154,999 - - - 2,547,935 - settlement in cash
BEAM 19.3 - 215,000 - - - - - -
Altimax 19.3 - - - - - - - -
JVHI 19.3 5-6 years, 5.94%-7.88%, Unsecured, no impairment
-
59,790 - - 1,317,000 - settlement in cash
Key management personnel 19.4 - 423,800 - - - - - -
Others 19.3 640,632 65,584 84,522 313,963 180,181 54,324 Interest-free excluding cash Unsecured, no impairment
and cash equivalents,
settlement in cash
₱1,536,007 ₱4,593,636 ₱207,626 ₱634,104 ₱7,545,224 ₱599,507
CREATE.WONDERFUL 78
2022
Amount of transaction Outstanding Balance
Costs and Cost and Amounts

Expenses Expenses Cash and Owed by Amounts Owed
Revenue and charged to capitalized Cash Related to Related
Note Other Income Profit or Loss as Asset Equivalents Parties Parties Terms Conditions
Entities with joint control
over the Company
Singtel 19.1 ₱427,088 ₱177,202 ₱- ₱- ₱46,066 ₱161,264 Interest-free, settlement in cash Unsecured, no impairment
AC 19.1 23,269 40,134 - - 3,924 249 Interest-free, settlement in cash Unsecured, no impairment
Jointly controlled entities
BMPL 19.2 - 26,224 16,499 - - 4,361 Interest-free, settlement in cash Unsecured, no impairment
Mynt 19.2 165,430 3,327,750 - 437,505 340,041 - Interest-free, settlement in cash Unsecured, no impairment
Globe STT GDC, Inc. 19.2 266,930 - 3,096,530 - 514,756 547,843 Interest-free, settlement in cash Unsecured, no impairment
Other related parties

3-5 years, 4.25-6.00%, Unsecured, no impairment
GRP 19.3 160,250 - - - 2,547,935 - settlement in cash
BEAM 19.3 - 215,000 - - - - - -
Altimax 19.3 - - 3,150,000 - - - - -
JVHI 19.3 6 years, 5.94%, Unsecured, no impairment
-
21,490 - - 681,000 - settlement in cash
Key management personnel 19.4 - 360,200 - - - - - -
Others 19.3 684,131 100,810 57,825 1,270,967 164,577 44,189 Interest-free excluding cash Unsecured, no impairment
and cash equivalents,
settlement in cash
₱1,748,588 ₱4,247,320 ₱6,320,854 ₱1,708,472 ₱4,298,299 ₱757,906
CREATE.WONDERFUL 79
Amounts owed by related parties are presented in the statement of financial position as follows:
Notes 2023 2022

(In Thousand Pesos)
Trade receivables – net ₱248,837 ₱236,137
Due from related parties 10.2 3,431,452 833,227
Loans to related parties 10 3,864,935 3,228,935
₱7,545,224 ₱4,298,299
Amounts owed to related parties amounting to ₱599.51 million and ₱757.91 million as of
December 31, 2023 and 2022, respectively are presented under trade payables and accrued expenses
account in the statements of financial position.
As of December 31, 2023 and 2022, total related party trade and other receivables with and among
subsidiaries that were eliminated at consolidation against related party trade and other payables
amounted to ₱67,812 million and ₱58,946 million, respectively. These are mostly unsecured, interest-
free and settled in cash.
19.1 Entities with Joint Control over Globe Group - AC and Singtel
Singtel
Interconnection agreements
Globe Telecom has interconnection agreements with Singtel. The interconnection revenues
recognized in relation to the agreements amounted to ₱336.00 million, ₱427.09 million and ₱561.59
million in 2023, 2022 and 2021, respectively. The interconnection costs recognized in relation to the
agreements amounted to ₱23.05 million, ₱19.35 million and ₱29.53 million in 2023, 2022 and 2021,
respectively.
Technical assistance agreement
Globe Telecom and Singtel have a technical assistance agreement whereby Singtel will provide
consultancy and advisory services, including those with respect to the construction and operation of
Globe Telecom’s networks and communication services, equipment procurement and personnel
services. In addition, Globe Telecom has software development, supply, license and support
arrangements, lease of cable facilities, maintenance and restoration costs and other transactions with
Singtel. General and administrative expenses charged to profit or loss in relation to the agreement
amounted to ₱267.68 million, ₱157.85 million and ₱264.68 million in 2023, 2022 and 2021,
respectively.
AC
Subscription receivable
Globe Telecom, Innove and BTI earn subscriber revenues from AC. Service revenues recognized from
AC amounted to ₱39.22 million, ₱23.27 million and ₱10.18 million in 2023, 2022 and 2021,
respectively.
Cost reimbursements
Globe Telecom reimburses AC for certain operating expenses. Total expense recognized by the Globe
Group from the transaction amounted to ₱54.87 million, ₱40.13 million and ₱443.93 million in 2023,
2022 and 2021, respectively.
CREATE.WONDERFUL 80
19.2 Joint Ventures in which the Globe Group is a venturer
BMPL
Globe Telecom has preferred roaming service contract with BMPL. Under this contract,
Globe Telecom will pay BMPL for services rendered by the latter which include, among others,
coordination and facilitation of preferred roaming arrangement among JV partners, and procurement
and maintenance of telecommunications equipment necessary for delivery of seamless roaming
experience to customers. Globe Telecom also incurs commission from BMPL for regional top-up
service provided by the JV partners. The net outstanding liabilities to BMPL related to these
transactions amounted to ₱2.78 million and ₱4.36 million as of December 31, 2023 and 2022,
respectively. Total expenses recognized related to these transactions amounted to ₱20.14 million,
₱26.22 million and ₱15.45 million in 2023, 2022, and 2021, respectively.
Mynt
Management support services

The Globe Group renders certain management support services to GXI. The management services also
include the use of the Globe Group’s network and facilities to conduct GXI’s operations. Management
fee income amounted to ₱64.77 million, ₱165.43 million and ₱165.43 million in 2023, 2022, and 2021,
respectively (see Note 22).
Service agreement
Mynt offers over-the-air reloading to the mobile prepaid subscribers of the Globe Group using the
Gcash mobile application. This entitles Mynt to a certain percentage share of the prepaid load sales
through the Gcash platform.
Mynt also provides virtual GCash wallet to the Globe Group and functions as an Internet Payment
Gateway. This enables the subscribers of the Globe Group to purchase Globe products and settle
postpaid bills using the GCash platform.
Expense charged to profit or loss in relation to these arrangements amounted to ₱3,523.51 million,
₱3,327.75 million and ₱2,437.29 million in 2023, 2022 and 2021, respectively.
Outstanding Gcash wallet balance as of December 31, 2023 and 2022 amounted to ₱320.14 million
and ₱437.51 million, respectively.
Share Purchase Agreement
On September 8, 2023, Mynt entered into a definitive agreement with AB Capital & Investment
Corporation, an entity controlled by a member of the Board of Directors of Globe, to acquire up to a
50.0% equity stake in AB Capital Securities, Inc (“ABCSI”). Mynt has closed the first Investment Tranche
as of September 15, 2023 amounting to ₱37.50 million and currently owns 7.5% of ABCSI.
On September 29, 2023, Globe Telecom entered into a Share Purchase Agreement with Mynt for the
sale of Globe’s 77% investment in ECPay for a total consideration of ₱2,310.00 million which remains
outstanding as of December 31, 2023. (See Note 14.2)
CREATE.WONDERFUL 81
Globe STT GDC, Inc.
Management fees
The Globe Group renders certain management support services to Globe STT GDC. Management fees
recognized in relation to the services rendered amounted to ₱75.75 million and ₱83.14 million in 2023
and 2022, respectively (See Note 22).
Reimbursement of expenses
In the normal course of business, Globe STT GDC reimburse expenses to the Globe Group
amounting to ₱41.80 million and ₱121.32 million recognized as other income in 2023 and 2022,
respectively.
Leases
The Globe Group has lease arrangements with Globe STT GDC for the use of certain
telecommunication and data center facilities. Lease expense capitalized as right of use assets
amounted to ₱123.10 million and ₱3,096.53 million in 2023 and 2022, respectively.
The Globe Group has lease arrangements with Globe STT GDC for the use of certain office space.
Lease income recognized in relation to the agreement amounted to ₱123.05 million and ₱62.47
million in 2023 and 2022, respectively.
19.3 Transactions with the other related parties
Globe Retirement Plan (GRP)

The Globe Group granted various loans to the GRP at an interest rate of 5.50%, which matured on
September 11, 2020. Upon maturity, the loan was extended until September 11, 2023 with the interest
rate reduced to 4.25% per annum. In April 2022, Globe Telecom collected ₱408.00 million as full
settlement. On May 5, 2021, The Globe Group granted additional loans to the GRP at an interest rate
of 6%, which will mature on May 26, 2026. Interest income amounted to ₱155.00 million, ₱160.25
million and ₱120.29 million in 2023, 2022 and 2021, respectively (see Note 21). As of December 31,
2023 and 2022, the outstanding balance of loan receivable from GGRP amounted to ₱2,547.94 million
(see Note 10).
BHI
GRP owns 100% of BHI, a domestic corporation organized to invest in media ventures. BHI has
controlling interest in Altimax Broadcasting Co., Inc. (Altimax) and Broadcast Enterprises and Affiliated
Media Inc. (BEAM), respectively.
BEAM
On February 1, 2009, the Globe Group entered into a memorandum of agreement (MOA) with BEAM
for the latter to render mobile television broadcast service to Globe subscribers using the mobile TV
service. The Globe Group recognized expense amounting to ₱215.00 million, ₱215.00 million and
₱215.00 million in 2023, 2022 and 2021, respectively.
Altimax
On October 1, 2009, the Globe Group entered into a MOA with Altimax for the Globe Group’s co-use
of specific frequencies of Altimax’s for the rollout of broadband wireless access to the Globe Group’s
subscribers. The Globe Group recognized expense amounting to nil in 2023 and 2022 and ₱7.28
million 2021.
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On March 21, 2022 Altimax's Frequency was reallocated to Globe following the approval of the
National Telecommunications Commission (NTC) to reclassify the Frequency to broadband wireless
access. Total consideration amounting to ₱3,150.00 million was subsequently paid in April 1, 2022.
JVHI
The Globe Group granted loan to JVHI at an interest rate of 5.94%, which will mature on January 19,
2028. In 2023, the Globe Group granted additional loan to JVHI at an interest of 7.88%, which will
mature on January 19, 2028. Interest income amounted to ₱59.79 million and ₱21.49 million in 2023
and 2022, respectively (see Note 21). As of December 31, 2023 and 2022, the outstanding balance of
loan receivable from JVHI amounted to ₱1,317.00 million and ₱681.00 million, respectively (see Note
10).
917Ventures Group Retirement Plan owns 99.99% of JVHI’s outstanding shares. The Plan was
established by GCVHI and registered with the Bureau of Internal Revenue on May 12, 2021 to fund
the retirement and separation benefits of the participating and qualified employees of 917Ventures,
BCHI and AI.
Others
The Globe Group earns service revenues, maintains money market placements and cash in bank
balances, acquires transportation equipment and incurs general, selling and administrative expenses
such as rentals, utilities and customer contract services, from entities which are either controlled,
jointly controlled or significantly influenced by AC.
19.4 Transactions with key management personnel of the Globe Group

The following compensation of key management personnel were recognized as expenses in 2023 and
2022 which includes accrued but unpaid amounts for the years ended:
2023 2022
(In Thousand Pesos)
Short-term employee benefits ₱329,000 ₱267,000
Share-based payments 80,200 73,400
Post-employment benefits 14,600 19,800
₱423,800 ₱360,200
There are no agreements between the Globe Group and any of its directors and key officers providing
for benefits upon termination of employment, except for such benefits to which they may be entitled
under the Globe Group’s retirement plans.
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20 Equity and Other Comprehensive Income
Globe Telecom’s authorized capital stock consists of (amounts in thousand pesos and number of
shares):
2023 2022
Shares Amount Shares Amount
(In Thousand Pesos and Number of Shares)
Voting preferred stock -₱5 per share 160,000 ₱800,000 160,000 ₱800,000
Non-voting preferred stock -₱50 per
share 40,000 2,000,000 40,000 2,000,000
Common stock -₱50 per share 168,934 8,446,719 168,934 8,446,719
Approval of the Stockholders to Increase the Authorized Common Capital Stock
On April 26, 2022, the stockholders of Globe Telecom approved the amendments to the articles of
incorporation to increase Globe Telecom’s authorized common capital stock by 20,000,000 shares
from 148,934,373 shares to 168,934,373 shares with par value being retained at ₱50.00 per share.
Approval of the SEC to Increase the Authorized Common Capital Stock

On October 24, 2022, the Securities and Exchange Commission approved the amendments to the
articles of incorporation to increase Globe Telecom’s authorized common capital stock from
₱7,446,719 to ₱8,446,719 consisting of 168,934,373 shares with par value being retained at ₱50.00 per
share.
Globe Telecom’s issued, subscribed and fully paid capital stock consists of:
2023 2022
Voting preferred stock 158,515 ₱792,575 158,515 ₱792,575
Non-voting preferred stock 20,000 1,000,000 20,000 1,000,000
Common stock 144,229 7,211,455 144,060 7,203,027
Total capital stock ₱9,004,030 ₱8,995,602
Below is the summary of the Globe Telecom’s track record of registration of securities:
Number of Issue/offer Date of

shares registered price approval
(In Thousands, Except for Issue/Offer price)
Voting preferred stock 158,515 ₱5.00 June 2001
Non-voting preferred stock 20,000 500.00 August 11, 2014
Common stock* 30,000 0.50 August 11, 1975
Common stock* 10,119 1,680 October 28, 2022
*Initial number of registered shares only
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20.1 Preferred Stock
Non-Voting Preferred Stock

On February 10, 2014, Globe Telecom’s BOD approved the amendment of Articles of Incorporation
(AOI) to reclassify 31 million of unissued common shares with par value of ₱50 per share and
90 million of unissued voting preferred shares with par value of ₱5 per share into a new class of
40 million non-voting preferred shares with par value of ₱50 per share.
On April 8, 2014, the stockholders approved the issuance, offer and listing of up to 20 million non-
voting preferred shares, with an issue volume of up to ₱10 billion. The preferred shares shall be
redeemable, non-convertible, non-voting, cumulative and may be issued in series.
On June 5, 2014, the SEC approved the amendment of AOI to implement the foregoing
reclassification of shares.
On August 8, 2014, the SEC approved the offer of non-voting preferred perpetual shares and on
August 15, 2014, the 20 million non-voting preferred shares were fully subscribed and issued.
Subsequently, the shares were listed at the Philippines Stock Exchange (PSE) on August 22, 2014.
Non-voting preferred stock has the following features:
▪ Issued at ₱50 par;
▪ Dividend rate to be determined by the BOD at the time of issue;
▪ Redemption - at Globe Telecom‘s option at such times and price(s) as may be determined by the
BOD at the time of issue, which price may not be less than the par value thereof plus accrued
dividends;
▪ Eligibility of investors - Any person, partnership, association or corporation regardless of
nationality wherein at least 60% of the outstanding capital stock shall be owned by Filipino;
▪ No voting rights;
▪ Cumulative and non-participating;
▪ No pre-emptive rights over any sale or issuance of any share in Globe Telecom’s capital stock; and
▪ Stocks shall rank ahead of the common shares and equally with the voting preferred stocks in the
event of liquidation.
On August 22, 2021, Globe Telecom redeemed the 20 million non-voting preferred shares for
₱10,000.00 million which were recognized as treasury shares in the consolidated statements of
financial position (see Note 20.4).
Voting Preferred Stock
Voting preferred stock has the following features:
▪ Issued at ₱5 par;
▪ Dividend rate to be determined by the BOD at the time of issue;
▪ One preferred share is convertible to one common share starting at the end of the 10th year of
the issue date at a price to be determined by Globe Telecom’s BOD at the time of issue which
shall not be less than the market price of the common share less the par value of the preferred
share;
▪ Call option - Exercisable any time by Globe Telecom starting at the end of the 5th year from issue
date at a price to be determined by the BOD at the time of issue;
▪ Eligibility of investors - Only Filipino citizens or corporations or partnerships wherein 60% of the
voting stock or voting power is owned by Filipino;
▪ With voting rights;
▪ Cumulative and non-participating;
▪ Preference as to dividends and in the event of liquidation; and
CREATE.WONDERFUL 85
▪ No pre-emptive right to any share issue of Globe Telecom, and subject to yield protection in case
of change in tax laws.
The dividends for preferred stocks are declared upon the sole discretion of Globe Telecom’s BOD.
20.2 Common Stock

The rollforward of outstanding common shares follows:
2023 2022
At beginning of year 144,060 ₱7,203,027 133,619 ₱6,680,960
Issuance of shares by way of stock
rights - - 10,119 505,952
Issuance of shares under share-
based compensation plan and
exercise of stock options 169 8,428 322 16,115
At end of year 144,229 ₱7,211,455 144,060 ₱7,203,027
Holders of fully paid common stock are entitled to voting and dividends rights.
Stock Rights Offering

On June 20, 2022, the board of directors of Globe Telecom approved the offer and issuance of
common shares by way of stock rights to eligible shareholders of record, and the subsequent listing of
said shares. The common shares for this offer will be issued out of the increase in the Company’s
authorized capital stock, which was approved by Globe’s board of directors and stockholders on
April 25, 2022 and April 26, 2022, respectively.
On October 28, 2022, Globe Telecom formally listed 10,119,047 common shares newly issued to
stockholders that participated in the recently concluded Rights Offer (the “Offer”) on the Philippine
Stock Exchange. The common shares were sold in the Offer at ₱1,680.00 per share, raising net
proceeds of ₱16,804.48 million.
20.3 Capital Securities
On November 2, 2021, Globe Telecom issued US$600 million senior perpetual capital securities with
an initial distribution rate of 4.20% payable semi-annually and callable on or after August 2, 2026. The
distribution rate is subject to step up on the fifth anniversary and shall be recalculated every five years
thereafter. The capital securities were classified as equity since there is no fixed redemption date and
the redemption is at the option of Globe Telecom. Globe Telecom also has the right to defer payment
of any or all of the distribution. On November 3, 2021, the capital securities were listed in Singapore
Exchange Securities Trading Limited.
Distributions to holders of capital securities amounted to ₱1,330.62 million and ₱1,306.73 million in
2023 and 2022,respectively.
20.4 Treasury Shares

The Globe Group’s treasury shares pertain to the 20 million non-voting preferred shares that were
redeemed on August 22, 2021 for ₱10,000.00 million (see Note 20.1).
CREATE.WONDERFUL 86
20.5 Cash Dividends
Information on the Globe Telecom’s BOD declaration of cash dividends follows:
Date
Per Share Amount Record Payment

Dividends on Voting Preferred
stock:
November 11, 2021 ₱0.32 ₱50,027 November 25, 2021 December 10, 2021
November 11, 2022 0.32 50,027 November 25, 2022 December 9, 2022
November 3, 2023 0.32 50,027 November 17, 2023 December 1, 2023
Dividends on Non-voting
Preferred stock:
December 11, 2020 13.00 260,030 January 27, 2021 February 22, 2021
May 6, 2021 13.00 260,030 July 28, 2021 August 23, 2021
Dividends on Common stock:

February 9, 2021 27.00 3,602,685 February 24, 2021 March 11, 2021
May 6, 2021 27.00 3,607,718 May 21, 2021 June 4, 2021
August 5, 2021 27.00 3,607,718 August 19, 2021 September 3, 2021
November 11 ,2021 27.00 3,607,718 November 25, 2021 December 10, 2021
May 4 2022 27.00 3,616,420 May 19, 2022 June 3, 2022
November 11, 2022 25.00 3,601,514 November 25, 2022 December 9, 2022
May 4, 2023 25.00 3,605,714 May 18, 2023 June 2, 2023
November 3, 2023 25.00 3,605,715 November 17, 2023 December 1, 2023
20.6 Common Stock Dividend

The dividend policy of Globe Telecom as approved by the BOD is to declare cash dividends to its
common stockholders on a regular basis as may be determined by the BOD.
The dividend distribution policy is reviewed annually and subsequently each quarter of the year,
taking into account Globe Telecom's operating results, cash flows, debt covenants, capital expenditure
levels and liquidity.
Globe Telecom distributes cash dividends to its shareholders at the rate of 60% to 75% of prior year's
core net income, and is committed to a sustainable dividend policy in line with earnings and cash flow
generation.
20.7 Retained Earnings Available for Dividend Declaration

The total unrestricted retained earnings available for dividend declaration amounted to
₱19,998.15 million and ₱20,566.57 million as of December 31, 2023 and 2022, respectively. This
amount excludes the undistributed net earnings of consolidated subsidiaries, accumulated equity in
net earnings of joint ventures accounted for under the equity method, and unrealized gains
recognized on asset and liability, currency translations and unrealized gains on fair value adjustments.
The Globe Group is also subject to loan covenants that limits its ability to pay dividends (see Note 17).
CREATE.WONDERFUL 87
20.8 Other Comprehensive Income
Other Reserves
2023
Investment Remeasurement
Cash flow in equity Currency on pension
hedges securities translation liabilities
(Note 8) (Note 10) adjustment (Note 27) Total
(Unaudited and In Thousand Pesos)
As of January 1 (₱1,181,500) ₱985,323 ₱663,055 (₱583,184) (₱116,306)
Fair value changes (852,889) 224,064 - - (628,825)
Share in OCI from investment in
joint venture (see Note 14) - 63,823 (291) 5,126 68,658
Remeasurement on pension liabilities - - - (2,145,565) (2,145,565)
Transferred to profit or loss 1,099,618 - - - 1,099,618
Exchange differences - - (22,152) - (22,152)
Income tax effect (see Note 28) (61,682) (56,016) - 536,391 418,693
Other comprehensive income for the
period 185,047 231,871 (22,443) (1,604,048) (1,209,573)
Other comprehensive income
attributable to non-controlling
interest - - (3,011) (4,363) (7,374)
attributable to equity holders of the
Parent 185,047 231,871 (25,454) (1,608,411) (1,216,947)
As of December 31 (₱996,453) ₱1,217,194 ₱637,601 (₱2,191,595) (₱1,333,253)
2022
Cash flow in equity Currency on defined
hedges securities translation benefit plan
(In Thousand Pesos)
As of January 1 ₱198,090 ₱956,219 (₱35,365) (₱3,314,072) (₱2,195,128)
Fair value changes 1,791,710 2,492 - - 1,794,202
Share in OCI from investment in
joint venture (see Note 14) - 27,235 5,276 (9,381) 23,130
Remeasurement on pension liabilities - - - 3,666,776 3,666,776
Transferred to profit or loss (3,631,163) - - - (3,631,163)
Exchange differences - - 693,257 - 693,257
Income tax effect (see Note 28) 459,863 (623) - (916,694) (457,454)
period (1,379,590) 29,104 698,533 2,740,701 2,088,748
attributable to non-controlling
interest - - (113) (9,813) (9,926)
attributable to equity holders of the
Parent (1,379,590) 29,104 698,420 2,730,888 2,078,822
As of December 31 (₱1,181,500) ₱985,323 ₱663,055 (₱583,184) (₱116,306)
CREATE.WONDERFUL 88
2021
Cash flow in equity Currency on defined
hedges securities translation benefit plan
(In Thousand Pesos)
As of January 1 (₱990,120) ₱753,674 (₱66,008) (₱3,917,136) (₱4,219,590)
year:
Fair value changes 3,130,910 409,185 - - 3,540,095
Remeasurement loss on defined benefit
plan - - - 1,192,789 1,192,789
Transferred to profit or loss (1,452,333) - - - (1,452,333)
Exchange differences - - 28,436 - 28,436
Share in OCI from investment in joint
venture (Note 14) - 57,571 2,980 (15,222) 45,329
Income tax adjustment (CREATE)
(see Note 28) (70,723) 14,150 - (278,511) (335,084)
Income tax effect (see Note 28) (419,644) (102,296) - (298,932) (820,872)
period 1,188,210 378,610 31,416 600,124 2,198,360
Other comprehensive income attributable
to non-controlling interest - - (773) 2,940 2,167
Other comprehensive income attributable
to equity holders of the Parent 1,188,210 378,610 30,643 603,064 2,200,527
Reclassification of fair value gain on
investment in equity securities at
FVOCI - (176,065) - - (176,065)
As of December 31 ₱198,090 ₱956,219 (₱35,365) (₱3,314,072) (₱2,195,128)
21 Interest Income
Interest income is earned from the following sources:
Notes 2023 2022 2021

(In Thousand Pesos)
Short-term placements 5 ₱374,055 ₱130,153 ₱13,810
Loans receivable:
GRP 19.3 154,999 160,250 120,292
JVHI 19.3 59,790 21,490 -
Cash in banks 5 75,980 9,650 5,946
Others 12,746 18,566 9,460
₱677,570 ₱340,109 ₱149,508
CREATE.WONDERFUL 89
22 Other Income - net
Notes 2023 2022 2021

(In Thousand Pesos)
Gain (loss) on derivatives
instruments – net (₱740,686) ₱5,797,800 ₱3,214,633
Foreign exchange gain (loss) - net 1,042,052 (5,343,019) (3,656,218)
Management fees:
Mynt 19.2 64,767 165,430 165,430
Globe STT GDC 19.2 75,750 83,143 -
Others 45,142 13,138 -
Lease 160,381 107,238 49,070
Gain from deconsolidation of
subsidiary 14.2 76,669 - -
Gain on sale of investment in
HealthNow - 75,245 -
Gain on deemed sale of investment
in Konsulta - 26,410 -
Gain on settlement and
remeasurement of ARO 18 - 2,629 74,433
Gain on deemed sale of investment
in Mynt 14.2 - - 4,344,037
Others 235,823 1,546,800 465,262
₱959,898 ₱2,474,814 ₱4,656,647
23 General, Selling and Administrative Expenses

Notes 2023 2022 2021

(In Thousand Pesos)
Staff costs 27 ₱18,959,128 ₱19,136,088 ₱18,247,670
Repairs and maintenance 13,345,136 11,656,701 10,193,836
Utilities, supplies and other administrative expenses 11,426,299 10,309,303 7,522,027
Professional and other contracted services 9,706,151 10,670,751 12,389,867
Platform fees and bank charges 5,232,308 4,690,581 2,499,997
Selling, advertising and promotions 4,776,126 6,385,740 7,455,850
Taxes and licenses 3,816,353 3,889,035 3,942,678
Lease 13.3 2,828,275 2,794,315 4,274,333
Insurance and security services 1,916,654 2,131,677 2,020,244
Courier and delivery 246,937 574,883 668,257
Others 2,427,683 1,988,232 2,151,333
₱74,681,050 ₱74,227,306 ₱71,366,092
CREATE.WONDERFUL 90
24 Depreciation and amortization
The account consists of:
Notes 2023 2022 2021

(In Thousand Pesos)
Property and equipment 11 ₱33,477,566 ₱34,088,386 ₱32,321,056
Intangible assets 12 6,979,156 6,283,860 5,831,884
Right of use assets 13 6,895,289 5,276,304 2,974,674
Investment properties 10 4,032 4,746 5,378
₱47,356,043 ₱45,653,296 ₱41,132,992
25 Financing Costs
Notes 2023 2022 2021

(In Thousand Pesos)
Loans payable* 17 ₱6,723,599 ₱6,884,490 ₱6,372,369
Lease liabilities 13.2 4,867,242 1,668,972 560,764
Swap costs 8.4 490,046 1,140,451 1,422,735
Pension cost 27.1.1 33,584 198,227 174,300
ARO accretion expense 18 8,250 187,760 199,152
Others 23,158 11,389 11,443
₱12,145,879 ₱10,091,289 ₱8,740,763

*This account is net of the amount capitalized borrowing costs (see Notes 11 and 17).
26 Impairment and other losses

Notes 2023 2022 2021

(In Thousand Pesos)
Impairment loss on
Trade receivables 6 ₱3,494,061 ₱4,108,704 ₱3,544,995
Contract assets 7.1 947,087 723,167 346,967
Goodwill 12 154,614 - -
Property and equipment 11 92,441 - 1,155,691
Provisions for (reversal of):
Inventory obsolescence 9 399,495 245,516 502,627
Other probable losses – net 16 377,517 (185,243) (15,802)
Other assets (1,236) 14,603 32,461
₱5,463,979 ₱4,906,747 ₱5,566,939
CREATE.WONDERFUL 91
27 Staff Cost
This account consist of:
Recognized in Recognized
profit or loss in OCI
(Note 23) (Note 20.8)
2023 (In Thousand Pesos)
Compensation and short-term benefits ₱17,831,001 ₱-
Pension benefits 842,239 2,145,565
Share based compensation 285,888 -
₱18,959,128 ₱2,145,565
2022
Pension benefits 1,089,723 (3,666,776)
₱19,136,088 (₱3,666,776)
2021
Pension benefits 1,172,467 (1,192,789)
₱18,247,670 (₱1,192,789)
27.1 Pension Benefits

The details of pension liability recognized in the consolidated statements of financial position are as
follows:
2023 2022
(In Thousand Pesos)
Globe Retirement Plan (GRP) ₱2,636,093 ₱1,830,881
Other pension benefits 82,219 132,609
₱2,718,312 ₱1,963,490
CREATE.WONDERFUL 92
The details of pension expense recognized in the consolidated statements of comprehensive income
are as follows:
Recognized
in profit or Recognized in
loss OCI
GRP ₱773,424 ₱2,224,333
Others 68,815 (78,768)
₱842,239 ₱2,145,565
GRP ₱1,020,459 (₱3,639,967)
Others 69,264 (26,809)
₱1,089,723 (₱3,666,776)
2021
GRP ₱1,149,187 (₱1,219,262)
Others 23,280 26,473
₱1,172,467 (₱1,192,789)
27.1.1 Globe Retirement Plan

The Globe Group sponsors Globe Retirement Plan (GRP), a noncontributory defined benefit plan for
qualifying employees of Globe Telecom and Innove. GRP is administered by a separate fund that is
legally separated from the entity. The Board of Trustees (BOT) of the pension fund are required by law
to act in the interest of the fund and of all relevant stakeholders in the plan. The BOT members are
unanimously appointed by Globe Telecom acting through its BOD.
The BOT are authorized to appoint one or more fund managers to hold, invest and reinvest the assets
of the Plan and execute an Investment Agreement with the said fund managers. The BOT sets the
investment policies and limits of the Plan, and appoints fund managers to assist in the investment
management of the Plan. The objective of the portfolio is capital preservation by earning higher than
regular deposit rates over a long period given a small degree of risk on principal interest.
Asset - liability matching strategies

The investment policy in managing liquidity is to have sufficient liquidity at all times to meet the Plan’s
maturing liabilities, including benefit payments to qualified employees who are expected to avail of
their retirement benefits when due, without incurring unnecessary funding costs.
The Plan’s liquidity risk is managed on a daily basis by the Plan’s investment managers in accordance
with the policies and procedures duly approved by the BOT. The Plan’s overall liquidity position for the
year is monitored on a regular basis by the BOT.
Funding policy
The plan should have at least 100% solvency levels at all times. If a solvency deficiency exists, the
deficit must be immediately funded.
Risks associated with the Plan

The retirement plan typically expose the participants to actuarial risks such as investment risk, interest
rate risk, longevity risk and salary risk.
CREATE.WONDERFUL 93
Investment risk
The present value of the defined benefit plan liability is calculated using a discount rate determined by
reference to government bond yields; if the return on plan asset is below this rate, it will result in
remeasurement loss and may create a plan deficit.
Interest rate risk

A decrease in the government bond interest rate will increase the plan liability; however, this will be
partially offset by an increase in the return on the plan’s debt investments.
Salary risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries
of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s
liability.
The most recent actuarial valuation of the plan assets and the present value of the defined benefit
obligation were carried out at December 31, 2023 by an Independent Actuary. The present value of
the defined benefit obligation, and the related current service cost and past service cost, were
measured using the projected unit credit method.
The components of pension expense (included in staff costs under “General, selling and administrative
expenses” account) in the consolidated statements of comprehensive income are as follows:
2023 2022 2021

(In Thousand Pesos)
Current service cost ₱847,295 ₱1,110,085 ₱1,207,909
Past service cost - - -
847,295 1,110,085 1,207,909

Less: components capitalized as property and equipment (73,871) (89,626) (58,722)
Amount recognized in profit or loss 773,424 1,020,459 1,149,187

Net interest expense (Note 25) 33,584 198,227 174,300
Components of defined benefit costs recognized in profit or loss 807,008 1,218,686 1,323,487
Remeasurement on the net defined benefit liability:
Return on plan assets
(excluding amounts included in net interest expense) 528,921 (710,521) (502,949)
Actuarial gains and losses:
from changes in assumptions 1,764,509 (3,931,884) (2,549,710)
from experience adjustments (69,097) 1,002,438 1,833,397
Components of defined benefit costs recognized in other
comprehensive income 2,224,333 (3,639,967) (1,219,262)
₱3,031,341 (₱2,421,281) ₱104,225
The breakdown of pension liability is as follows:
2023 2022
(In Thousand Pesos)
Present value of benefit obligation ₱14,316,235 ₱11,392,648
Less: fair value of plan assets 11,680,142 9,561,767
Pension liability ₱2,636,093 ₱1,830,881
CREATE.WONDERFUL 94
The following tables present the changes in the present value of defined benefit obligation and fair
value of plan assets:
Present value of defined benefit obligation
2023 2022
(In Thousand Pesos)
Balance at beginning of year ₱11,392,648 ₱13,216,313
Current service cost 847,295 1,110,085
Interest cost 849,664 666,981
Benefits paid (468,784) (584,949)
Transfer of employees - (86,336)
Remeasurements in other comprehensive income:
Actuarial gains and losses arising from changes in assumptions 1,764,509 (3,931,884)
Actuarial gains and losses arising from experience adjustments (69,097) 1,002,438
Fair value of plan assets
2023 2022
(In Thousand Pesos)
Balance at beginning of year ₱9,561,767 ₱8,253,777

Remeasurement (gains)/losses:
Return on plan assets (excluding amounts included in net
interest expense) (528,921) 710,521
Contributions from the employer 2,300,000 800,000
Benefits paid (468,784) (584,949)
Transfer payments - (86,336)
Actual return on plan assets ₱287,159 ₱1,179,275
The recommended contribution for the Globe Group retirement fund for the year 2024 amounted to
₱1,150.18 million. This amount is based on the Globe Group’s actuarial valuation report as of
December 31, 2023.
The allocation of the fair value of the plan assets of the Globe Group as of December 31 is as follows:
2023 2022
(In Thousand Pesos)
Cash and cash equivalents ₱3,852 ₱328,751
Investment in debt securities 3,353,801 3,623,143
Investment in equity shares 8,322,489 5,609,873
₱11,680,142 ₱9,561,767
CREATE.WONDERFUL 95
The assumptions used to determine pension benefits for the Globe Group are as follows:
2023 2022
Discount rate 6.52% 7.93%
Salary rate increase 4.50% 4.50%
The assumptions regarding future mortality rates which are based on the 2017 Philippine
Intercompany Mortality Table which is based on a recent study by the Actuarial Society of the
Philippines.
In 2023 and 2022, the Globe Group applied a single weighted average discount rate that reflects the
estimated timing and amount of benefit payments.
The sensitivity analysis below has been determined based on reasonably possible changes of each
significant assumption on the defined benefit obligation as of December 31, 2023 and 2022, assuming
all other assumptions were held constant (in thousand pesos):
December 31, 2023
Increase Increase (decrease) on

(decrease) in basis defined benefit
points obligation
Discount rates +0.50% (672,126)
-0.50% 728,715
Future salary increases +0.50% 771,445
-0.50% (716,368)
Mortality +10.00% 2,640
-10.00% (9,128)
December 31, 2022
Increase Increase (decrease) on

(decrease) in basis defined benefit
points obligation
Discount rates +0.50% (537,191)
-0.50% 581,159
Future salary increases +0.50% 624,242
-0.50% (580,348)
Mortality +10.00% 47,627
-10.00% (51,147)
There were no changes from the previous period in the methods and assumptions used in preparing
sensitivity analysis.
The objective of the plan’s portfolio is capital preservation by earning higher than regular deposit
rates over a long period given a small degree of risk on principal and interest. Asset purchases and
sales are determined by the plan’s investment managers, who have been given discretionary authority
to manage the distribution of assets to achieve the plan’s investment objectives. The compliance with
target asset allocations and composition of the investment portfolio is monitored by the BOT on a
CREATE.WONDERFUL 96
regular basis.
The sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the changes in assumptions would occur in isolation of one
another as some of the assumptions may be correlated.
In presenting the above sensitivity analysis, the present value of the defined benefit obligation has
been calculated using the Projected Unit Credit Method at the end of the reporting period, which is
the same as that applied in calculating the defined benefit obligation recognized in the consolidated
statement of financial position.
The plan contributions are based on the actuarial present value of accumulated plan benefits and fair
value of plan assets are determined using an independent actuarial valuation.
The average duration of the defined benefit obligation at the end of the reporting period is
14.92 years and 14.87 years in 2023 and 2022, respectively.
Shown below is the maturity analysis of the undiscounted benefit payments as of December 31:
2023 2022
(In Thousand Pesos)
Within 1 year ₱1,757,543 ₱974,927
More than 1 year to 5 years 3,667,973 3,565,350
5 years to 10 years 7,193,594 6,427,008
₱12,619,110 ₱10,967,285
27.1.2 Other Pension Benefits

Other pension benefits pertain to the pension liabilities recognized by the Globe Group’s subsidiaries
who do not participate in the GRP. Other pension benefits are primarily recognized for the minimum
retirement benefits provided by the Philippine Retirement Law under Republic Act 7641.
27.2 Share-based Compensations

The Globe Telecom has stock plans for its employees. The number of shares allocated under these
plans shall not exceed the aggregate equivalent of 6% of the authorized capital stock.
27.2.1 Long-Term Incentive Plan

In November 2014, the Globe Group obtained approval from the BOD to implement a
Long-Term Incentive Plan (LTIP) also called a Performance Share Plan (PSP) covering key executives
and senior management. Under the PSP, the grantees are awarded a specific number of shares at the
start of the performance period which vest over a specified performance period and contingent upon
the achievement of specified long-term goals.
CREATE.WONDERFUL 97
The following are the stock grants to key executives and senior management personnel of the Globe
Group under the LTIP:
Number Fair Value

of Grants at of Each Fair Value
Date of Grant Grant Date Settlement Dates Grants Measurement
January 1, 2018 146,040 100% after 3 years subject to 1,782.80 Market price
attainment of plan targets and
subject to stock ownership
requirements
July 31, 2019 289,650 100% after 3 years subject to 1,997.35 Market price
requirements
requirements
requirements
requirements
requirements
The fair value is based on the average quoted market price for the last 20 trading days preceding the
approval date of the stock option grant.
Cost of share-based compensation in 2023, 2022 and 2021 amounted to ₱285.89 million, ₱440.89
million and ₱439.83 million, respectively.
28 Income Tax
Income Tax Expense
CREATE.WONDERFUL 98
Income tax expense charged to profit or loss includes the following:
2023 2022 2021

(In Thousand Pesos)
Current ₱7,853,664 ₱9,696,533 ₱4,903,568
Deferred (16,004) (200,132) 412,347
₱7,837,660 ₱9,496,401 ₱5,315,915
Deferred tax expense (benefit) recognized in the consolidated other comprehensive income
amounted to (₱418.69) million, ₱457.45 million and ₱1,155.96 million in 2023, 2022 and 2021,
respectively (see Note 20.8).
The reconciliation of the provision for income tax at statutory tax rate and the actual current and
deferred provision for income tax follows:
2023 2022 2021

(In Thousand Pesos)
Multiplied by statutory income tax rate 25% 25% 25%
Provision at statutory income tax rate 8,103,918 11,025,113 7,259,943
Add (deduct) tax effects of:
Equity in net (income)losses of associates and joint
ventures (553,690) (270,801) (220,384)
Gain on sale of controlling interest on data center
business subjected to lower rate - (796,812) -
Income subjected to lower tax rates 71,477 (268,411) (459,907)
Change in income tax rate (CREATE)
Current tax expense - - (695,139)
Deferred tax expense - - (670,969)
Others 215,955 (192,688) 102,371
Actual provision for income tax ₱7,837,660 ₱9,496,401 ₱5,315,915
The current provision for income tax includes the following:
2023 2022 2021

(In Thousand Pesos)
RCIT or MCIT, whichever is higher ₱7,713,544 ₱9,599,769 ₱4,836,217
Final tax 140,120 96,764 67,351
₱7,853,664 ₱9,696,533 ₱4,903,568
Deferred Income Tax Assets and Liabilities

Net deferred tax assets and (liabilities) presented in the consolidated statements of financial
position on a net basis by entity are as follows:
CREATE.WONDERFUL 99
2023 2022
(In Thousand Pesos)
Net deferred income tax assets ₱2,279,979 ₱2,228,042
Net deferred income tax liabilities (5,983,954) (6,446,284)
(₱3,703,975) (₱4,218,242)
The significant components of the deferred income tax assets and liabilities of the Globe Group
represent the deferred income tax effects of the following (In Thousand Pesos):
2023 2022
(In Thousand Pesos)
Deferred tax assets
Lease liabilities ₱23,009,073 ₱13,557,899
Allowance for impairment losses on receivables 2,379,928 2,523,317
Unrealized foreign exchange losses 1,317,067 1,549,919
Unearned revenues and advances already subjected to income tax 1,007,499 1,217,257
Accrued manpower cost 1,227,903 1,104,647
Accrued pension 1,288,463 887,693
ARO 517,842 614,250
Accumulated impairment losses on property and equipment 497,020 527,227
Provision for claims and assessment 555,503 470,637
Inventory obsolescence and market decline 262,074 212,364
Cost of share-based compensation 200,675 212,223
Others 180,431 171,558
32,443,478 23,048,991
Deferred tax liabilities
Right of use assets (18,132,820) (10,685,356)
Excess of accumulated depreciation and amortization of Globe
Telecom equipment for (a) tax reporting over (b) financial reporting (11,581,427) (10,119,947)
Contract asset (1,975,014) (2,489,582)
Unrealized gain on derivative transaction (1,058,695) (1,129,999)
Others (3,399,497) (2,842,349)
(36,147,453) (27,267,233)
Net deferred income tax (liabilities) assets (₱3,703,975) (₱4,218,242)
The rollforward analysis of the Globe Group’s net deferred tax assets (liabilities) follows:
2023 2022
(In Thousand Pesos)
At beginning of year (₱4,218,242) (₱4,028,638)
Deferred income tax recognized in profit or loss
Deferred tax relating to temporary difference 16,004 200,132
Deferred income tax recognized in comprehensive income
Deferred tax relating to temporary difference (Note 20.8) 418,693 (457,454)
Others 79,570 67,718
At end of year (₱3,703,975) (₱4,218,242)
CREATE.WONDERFUL 100
Corporate Recovery and Tax Incentives for Enterprises Act (CREATE)
On March 26, 2021, RA No. 11534, otherwise known as CREATE, was signed into law. Under the
CREATE bill, effective July 01, 2020, the existing 30% corporate income tax rate shall be amended as
follows:
• reduction of corporate income tax (CIT) rate to 20% applicable to domestic corporations with
total net taxable income not exceeding P5,000,000 and with total assets not exceeding P100
Million (excluding land on which the business entity’s office, plant and equipment are situated);
• reduction of CIT rate to 25% shall be applicable to all other corporations subject to regular CIT
• Minimum Corporate Income Tax (MCIT) rate shall also be amended to 1%, instead of 2%, for the
period beginning July 01, 2020 until June 30, 2023.
Under CREATE, corporate taxpayers shall prepare their annual income tax return for the calendar year
2020 using the pro-rated CIT rate for CY2020 reckoned from July 1, 2020 (retrospective effect).
As a result of the change in CIT rate, the Globe Group remeasured its current and deferred tax assets
and liabilities using the new applicable corporate income tax rates.
The application of the reduction in income tax rate resulted in the following in 2021:
• decrease in income tax expense recognized in the consolidated profit or loss by ₱1,366.11 million;
• increase in income tax expense recognized in the consolidated other comprehensive income by
₱335.08 million; and
• decrease in income tax payable and net deferred tax liabilities by ₱695.14 million and ₱695.19
million, respectively.
29 Earnings Per Share
The Globe Group’s earnings per share amounts were computed as follows:
2023 2022 2021

(In Thousand Pesos and Number of Shares
Except per Share Figures)
Net income attributable to common shareholders ₱24,512,760 ₱34,563,011 ₱23,652,811
Less dividends on preferred shares:
Non-voting preferred shares - - 260,030
Capital securities 1,330,619 1,250,363 214,091
Convertible voting preferred shares 50,027 50,027 50,027
Net income attributable to common shareholders for
basic earnings per share (a) 23,132,114 33,262,621 23,128,663
Add dividends on convertible voting preferred shares 50,027 50,027 50,027
Net income attributable to common shareholders for
diluted earnings per share (b) 23,182,141 33,312,648 23,178,690
Common shares outstanding, beginning 144,060 133,619 133,432
Add Weighted average number of issued shares under
share-based compensation 112 215 124
Weighted average number of issued shares by way
of stock rights - 1,687 -
Weighted average number of shares for basic
earnings per share (c) 144,172 135,521 133,556
Add Dilutive shares arising from:
Convertible preferred shares 442 338 334
Share based compensation plans 509 529 670
Adjusted weighted average number of common shares
for diluted earnings per share (d) 145,123 136,388 134,560
Basic earnings per share (a/c) ₱160.45 ₱245.44 ₱173.18
Diluted earnings per share (b/d) ₱159.74 ₱244.25 ₱172.25
30 Capital and Financial Risk Management and Financial Instruments
The Globe Group adopts an expanded corporate governance approach in managing its business risks.
An Enterprise Risk Management Policy was developed to systematically view the risks and to provide a
better understanding of the different risks that could threaten the achievement of the Globe Group’s
mission, vision, strategies, and goals, and to provide emphasis on how management and employees
play a vital role in achieving the Globe Group’s mission of transforming and enriching lives through
communications.
The policies are not intended to eliminate risk but to manage it in such a way that opportunities to
create value for the stakeholders are achieved. The Globe Group risk management takes place in the
context of the normal business processes such as strategic planning, business planning, operational
and support processes.
The application of these policies is the responsibility of the BOD through the Chief Executive Officer.
The Chief Finance Officer and concurrent Chief Risk Officer champion oversees the entire risk
management function. Risk owners have been identified for each risk and they are responsible for
coordinating and continuously improving risk strategies, processes and measures on an enterprise-
wide basis in accordance with established business objectives.
The risks are managed through the delegation of management and financial authority and individual
accountability as documented in employment contracts, consultancy contracts, letters of authority,
letters of appointment, performance planning and evaluation forms, key result areas, terms of
reference and other policies that provide guidelines for managing specific risks arising from the Globe
Group’s business operations and environment.
The Globe Group continues to monitor and manage its financial risk exposures according to its BOD
approved policies.
The succeeding discussion focuses on Globe Group’s capital and financial risk management.
30.1 Capital Risk Management Objectives and Policies

Capital represents equity attributable to equity holders of the Parent Company.
The primary objective of the Globe Group’s capital management is to ensure that it maintains a strong
credit rating and healthy capital ratios in order to support its business and maximize shareholder
value.
The Globe Group monitors its use of capital using leverage ratios, such as debt to total capitalization
and makes adjustments to it in light of changes in economic conditions and its financial position. The
ratio of debt to total capitalization for the years ended December 31, 2023 and 2022 was at 61% and
60%, respectively.
The Globe Group’s loan agreements include compliance with certain ratios which are also regularly
monitored (see Note 17.4).
30.2 Financial Risk Management Objectives and Policies

The Globe Group’s main risks arising from the use of financial instruments are market risk, credit risk
and liquidity risk. Globe Telecom’s BOD is ultimately responsible for reviewing and approving the
policies for managing each of these risks. The Globe Group’s risk management policies are
summarized below:
30.2.1 Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. The Globe Group is mainly exposed to two types of market risk:
interest rate risk and currency risk.
The Globe Group seeks to minimize the effects of these risks by using derivative financial instruments
to hedge these risk exposures. The Globe Group uses a combination of natural hedges and derivative
hedging to manage its foreign exchange exposure as discussed in Note 8. It uses interest rate
derivatives to reduce earnings volatility related to interest rate movements, and principal only swaps to
hedge the foreign exchange risk exposure to principal repayments on USD debt.
It is the Globe Group’s policy to ensure that capabilities exist for active but conservative management
of its foreign exchange and interest rate risks. The Globe Group does not engage in any speculative
derivative transactions. Authorized derivative instruments include currency forward contracts, currency
swap contracts, interest rate swap contracts and currency option contracts.
The sensitivity analyses in the following sections relate to the position as of December 31, 2023 and
2022. The analyses exclude the impact of movements in market variables on the carrying value of
pension, provisions and on the non-financial assets and liabilities of foreign operations.
The following assumptions have been made in calculating the sensitivity analyses:
▪ The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective
market risks. This is based on the financial assets and financial liabilities held as of
December 31, 2023 and 2022 including the effect of hedge accounting.
▪ The sensitivity of equity is calculated by considering the effect of any associated cash flow hedges
for the effects of the assumed changes in the underlying.
▪ The assumed changes in market rates applied in the sensitivity analyses were based on historical
information and may not necessarily reflect the actual movements that may occur in the future
periods.
30.2.1.1 Interest Rate Risk

The Globe Group’s exposure to market risk from changes in interest rates relates primarily to the
Globe Group’s long-term debt obligations.
Globe Group’s policy is to manage its interest cost using a mix of fixed and variable rate debt. To
manage this mix in a cost-efficient manner, the Globe Group enters into interest rate swaps, in which
Globe Group agrees to exchange, at specified intervals, the difference between fixed and variable
interest amounts calculated by reference to an agreed-upon notional principal amount.
After taking into account the effect of interest rate swaps, the ratio of loans with fixed interest rates to
total loans are as follows:
2023 2022
USD fixed rate loans 88% 86%
PHP fixed rate loans 68% 86%
The loans receivable from related parties are subject to fixed interest rates and therefore not exposed
to market interest rate risk.
Due to the short term maturities of cash and cash equivalents, its exposure to interest rate risk is not
considered to be significant.
The following tables demonstrate the sensitivity of income before tax and equity to a reasonably
possible change in interest rates after the impact of hedge accounting, with all other variables held
constant.
Effect on income
Increase/ Decrease before income tax Effect on equity
in basis Points Increase (Decrease) Increase (Decrease)
(In Thousand Pesos except changes in bps)
2023
USD +120bps ₱96,296 (₱16,503)
-120bps (96,296) 16,514
PHP +200bps 552,990 26,813
-200bps (552,990) (26,841)
2022
USD +400bps (₱236,553) (₱54,218)
-400bps 236,553 54,605
PHP +200bps 511,273 31,321
-200bps (511,273) (31,093)
30.2.1.2 Foreign Exchange Risk

The Globe Group’s foreign exchange risk results primarily from movements of the PHP against the
USD with respect to USD-denominated financial assets, USD-denominated financial liabilities and
certain USD-denominated revenues. Majority of revenues are generated in PHP, while substantially all
of capital expenditures are in USD. In addition, 20.52% and 23.67% of debt as of December 31, 2023
and 2022, respectively, are denominated in USD before taking into account any swap and hedges.
Information on the Globe Group’s foreign currency-denominated monetary assets and liabilities and
their PHP equivalents are as follows:
2023 2022
US Peso US Peso
Dollar Equivalent Dollar Equivalent
(In Thousand)
Assets
Cash and cash equivalents $129,745 ₱7,190,228 $57,293 ₱3,197,834
Trade Receivables 69,769 3,866,459 87,048 4,858,568
199,514 11,056,687 144,341 8,056,402
Liabilities
Trade payable and accrued expenses 715,480 39,650,458 597,538 33,351,576
Loans payable 930,350 51,558,136 994,127 55,487,208
1,645,830 91,208,594 1,591,665 88,838,784
Net foreign currency - denominated
liabilities $1,446,315 ₱80,151,907 $1,447,324 ₱80,782,382
The following table demonstrates the sensitivity to a reasonably possible change in the PHP to USD
exchange rate, with all other variables held constant, of the Globe Group’s income before tax (due to
changes in the fair value of foreign currency-denominated assets and liabilities).
Increase/Decrease Effect on income before
in Peso to income tax Effect on equity
US Dollar exchange rate Increase (Decrease) Increase (Decrease)
(In Thousand Pesos except change in bps)
2023
+.80 (₱898,763) ₱679,837
-.80 898,763 (679,837)
2022
+.70 (₱835,389) ₱624,564
-.70 835,389 (624,564)
The movement in equity arises from changes in the fair values of derivative financial instruments
designated as cash flow hedges.
The Globe Group’s foreign exchange risk management policy is to maintain a hedged financial
position, after taking into account expected USD flows from operations and financing transactions.
The Globe Group enters into short-term foreign currency forwards and long-term foreign currency
swap contracts in order to achieve this target.
30.2.2 Credit Risk
Credit Risk Exposure

The table below details the Globe Group’s exposure to credit risk:
Notes 2023 2022

(In Thousand Pesos)
Cash and cash equivalents 5 ₱16,645,077 ₱18,033,785
Trade receivables – net 6 18,097,898 23,563,414
Contract assets – net 7.1 6,223,595 6,891,455
Derivative assets 8 4,716,964 5,129,334
Loans receivable from related parties 10 3,864,935 3,228,935
Non-trade receivables 10 5,383,670 2,426,933
Investment in debt securities 31.1 150,739 128,932
₱55,082,878 ₱59,402,788
The Globe Group has not executed any credit guarantees in favor of other parties.
Credit Risk Management
Credit exposures from subscribers are managed closely by the Credit, Billing and Risk Management of
the Globe Group. Applications for postpaid service are subjected to standard credit evaluation and
verification procedures. The Credit, Billing and Risk Management of the Globe Group continuously
reviews credit policies and processes and implements various credit actions, depending on assessed
risks, to minimize credit exposure. Receivable balances of postpaid subscribers are being monitored
on a regular basis and appropriate credit treatments are applied at various stages of delinquency.
Likewise, net receivable balances from carriers of traffic are also being monitored and subjected to
appropriate actions to manage credit risk.
The Globe Group analyzes its subscribers’ receivables and contract assets based on internal credit risk
rating. The table below shows the analysis of the Globe Group’s subscribers’ receivables and contract
assets as of December 31, 2023 and 2022.
High Medium Low Terminated

Quality Quality Quality Accounts Total
(In Thousand Pesos)
2023
Wireless subscribers receivables:
Consumer ₱4,350,167 ₱734,266 ₱755,808 ₱611,691 ₱6,451,932
Key corporate accounts 135,829 294,538 37,807 569,360 1,037,534
Other corporations and SMEs 358,651 68,600 6,137 227,294 660,682
4,844,647 1,097,404 799,752 1,408,345 8,150,148
Wireline subscribers receivables:
Consumer 401,454 709,349 426,672 4,060,363 5,597,838
Key corporate accounts 1,275,043 3,060,670 705,254 2,194,161 7,235,128
1,817,764 3,874,323 1,161,675 6,699,920 13,553,682
Total subscribers' receivables 6,662,411 4,971,727 1,961,427 8,108,265 21,703,830

Wireless contract assets
Consumer 4,396,132 626,676 216,548 47,285 5,286,641
Key corporate accounts 282,818 282,871 11,018 5,966 582,673
5,036,414 962,305 231,703 56,789 6,287,211
Total subscribers' receivables and contracts assets ₱11,698,825 ₱5,934,032 ₱2,193,130 ₱8,165,054 ₱27,991,041
High Medium Terminated
Quality Quality Low Quality Accounts Total
(In Thousand Pesos)
2022
Wireless subscribers receivables:
Consumer ₱4,300,421 ₱747,189 ₱699,656 ₱904,157 ₱6,651,423
Key corporate accounts 309,840 425,548 59,857 538,010 1,333,255
4,984,889 1,229,033 840,552 1,702,841 8,757,315
Wireline subscribers receivables:
Consumer 314,179 584,630 432,248 7,101,801 8,432,858
Key corporate accounts 1,300,146 2,443,363 376,066 2,297,624 6,417,199
1,693,405 3,119,629 821,332 10,172,025 15,806,391
Total subscribers’ receivables 6,678,294 4,348,662 1,661,884 11,874,866 24,563,706

Wireless contract assets
Consumer 4,503,138 1,019,057 255,969 31,306 5,809,470
Key corporate accounts 478,538 162,875 6,916 4,757 653,086
5,402,925 1,232,288 272,022 44,688 6,951,923
Total subscribers’ receivables and contracts assets ₱12,081,219 ₱5,580,950 ₱1,933,906 ₱11,919,554 ₱31,515,629
The Globe Group’s credit risk rating comprises the following categories:
• High quality accounts are accounts considered to be of good quality, have consistently exhibited
good paying habits, and are unlikely to miss payments. High quality accounts primarily
include strong corporate and consumer accounts with whom the Globe Group has excellent
payment experience.
• Medium quality accounts are accounts that exhibited good paying habits but may require minimal
monitoring with the objective of moving accounts to high quality rating. Medium quality accounts
primarily include subscribers whose creditworthiness can be moderately affected by adverse
changes in economic and financial conditions, but will not necessarily, reduce the ability of the
subscriber to fulfill its obligations. It includes customers with whom the Globe Group has limited
experience and therefore, creditworthiness needs to be further established over time.
• Low quality accounts are accounts which exhibit characteristics that are identified to have
increased likelihood to miss payments. Low quality accounts are subject to closer monitoring and
scrutiny with the objective of managing risk and moving accounts to improved rating category. It
primarily includes mass consumer, corporate and SME customers whose creditworthiness are
easily affected by adverse changes in economic and financial conditions.
• Terminated accounts are accounts in cancelled status. Although there is a possibility that
terminated accounts may still be collected by exhausting collection efforts, the probability of
recovery has significantly deteriorated.
For traffic settlements and other trade receivables, the Globe Group uses delinquency and past due
information to analyze the credit risk. The tables below show the aging analysis of the Globe Group’s
traffic settlements and other trade receivables as of December 31, 2023 and 2022.
2023
Less than 31 to 60 61 to 90 Over

30 days days past days past 90 days
Current past due due due past due Total
(In Thousand Pesos)
Traffic receivables:
Foreign ₱348,938 ₱- ₱20,090 ₱10,935 ₱98,532 ₱478,495
Local 350,245 5,309 179 283 289,865 645,881
699,183 5,309 20,269 11,218 388,397 1,124,376
Other trade receivables 2,461,170 379,447 205,085 161,491 1,591,636 4,798,829
Total ₱3,160,353 ₱384,756 ₱225,354 ₱172,709 ₱1,980,033 ₱5,923,205
2022
Less than 31 to 60 61 to 90 Over

30 days days past days past 90 days past
Current past due due due due Total
(In Thousand Pesos)
Traffic receivables:
Foreign ₱271,168 ₱- ₱48,298 ₱75,093 ₱349,527 ₱744,086
Local 458,103 4,814 772 201 282,187 746,077
729,271 4,814 49,070 75,294 631,714 1,490,163
Other trade receivables 6,372,416 467,194 263,722 209,095 1,294,100 8,606,527
Total ₱7,101,687 ₱472,008 ₱312,792 ₱284,389 ₱1,925,814 ₱10,096,690
With respect to receivables from related parties, the exposure to credit risk is managed on a group
basis. Credit risks covering related party balances are reviewed based on credit worthiness of concern
related parties. There are no assessed credit risks as of December 31, 2023 and 2022.
For investments with banks and other counterparties, the Globe Group has a risk management policy
which allocates investment limits based on counterparty credit rating and credit risk profile. The Globe
Group makes a quarterly assessment of the credit standing of its investment counterparties, and
allocates investment limits based on size, liquidity, profitability, and asset quality. The usage of limits
is regularly monitored.
Non-telco subsidiaries mainly trades with recognized and creditworthy third parties. Non-telco
customers who wish to trade on credit terms are subject to credit verification procedures.
For its derivative counterparties, the Globe Group deals only with counterparty banks with investment
grade ratings and major universal and commercial local banks. Credit ratings of derivative
counterparties are reviewed quarterly.
Following are the Globe Group exposures with its investment counterparties for time deposits as of
December 31:
2023 2022 2021

Local bank deposits 47.53% 47.96% 99.95%
Onshore foreign bank 52.47% 52.04% 0.05%
30.2.3 Liquidity Risk
The Globe Group seeks to manage its liquidity profile to be able to finance capital expenditures and
service maturing debts. To cover its financing requirements, the Globe Group intends to use
internally generated funds and available long-term and short-term credit facilities.
The following table shows the Globe Group’s available credit facilities (in millions):
2023 2022
Long-term committed ₱2,000 ₱-
Short term
Committed ₱3,000 ₱3,000
Uncommitted
USD $114.26 $93.95
PHP ₱71,379.84 ₱44,188.40
As part of its liquidity risk management, the Globe Group regularly evaluates its projected and actual
cash flows. It also continuously assesses conditions in the financial markets for opportunities to
pursue fund raising activities, in case any requirements arise. Fund raising activities may include bank
loans, export credit agency facilities, and capital market issues.
The following tables show comparative information about the Globe Group’s financial instruments as
of the end of the reporting period presented by maturity profile including forecasted interest
payments for the next five years.
Loans Payable
2023
Less than 1 year 1 to 3 years Over 3 years

(In Thousands)
Loans Payable
Fixed Rate
USD notes $- $- $600,000
Philippine peso ₱20,739,064 ₱48,643,500 ₱86,567,000
Floating rate
USD notes $77,350 $253,000 $-
Philippine peso ₱11,830,000 ₱1,032,500 ₱30,845,000
Interest payable*
PHP debt ₱10,563,604 ₱23,773,367 ₱26,414,220
USD debt $42,267 $104,907 $118,125

*Used month-end USD LIBOR and Philippine Dealing and Exchange Corporation (PDEX) rates.
2022

(In Thousands)
Loans Payable
Fixed Rate
USD notes $227 $- $600,000
Philippine peso ₱36,377,298 ₱42,137,420 ₱77,289,000
Floating rate
USD notes $63,550 $88,800 $241,550
Philippine peso ₱6,452,500 ₱11,907,500 ₱4,800,000
Interest payable*
PHP debt ₱7,683,453 ₱17,379,018 ₱14,415,255
USD debt $43,356 $110,093 $145,717

*Used month-end USD LIBOR and Philippine Dealing and Exchange Corporation (PDEX) rates.
The following tables present the maturity profile of the Globe Group’s other liabilities and derivative
instruments (undiscounted cash flows including swap costs payments/receipts except for other
long-term liabilities) as of December 31, 2023 and 2022 (in thousand pesos).
2023
Other Financial Liabilities
Less than 1 year 1 to 5 years Over 5 years Total
Trade payables and accrued expenses* ₱76,520,166 ₱- ₱- ₱76,520,166

Other long-term liabilities* - - 1,137,748 1,137,748
₱76,520,166 ₱- ₱1,137,748 ₱77,657,914

*Excludes ARO and taxes payable which are not financial instruments.
Derivative Instrument

Receive Pay Receive Pay Receive Pay
Projected Swap Coupons:
Interest Rate Swaps-USD ₱- ₱- ₱- ₱- ₱- ₱-
Cross Currency Swaps ₱754,917 ₱545,857 ₱969,681 ₱967,191 ₱- ₱-
Principal Only Swaps ₱- ₱721,917 ₱- ₱1,677,640 ₱- ₱718,207

Projected Principal Exchanges:
Forward Purchase of USD $ 26,158 ₱1,452,301 $- ₱- $- ₱-
Forward Sale of USD ₱- $- ₱- $- ₱- $-
FX Swap $ 308,000 ₱17,121,700 $- ₱- $- ₱-
Cross Currency Swaps- PHP ₱- ₱3,955,797 ₱- ₱8,834,976 ₱- ₱-
Cross Currency Swaps- USD $77,350 $- $173,000 $- $- $-
Principal Only Swaps- PHP ₱- ₱- ₱- ₱21,738,975 ₱- ₱11,410,700
Principal Only Swaps- USD $- $- $445,000 $- $235,000 $-
2022
Other Financial Liabilities
Less than 1 year 1 to 5 years Over 5 years Total
Trade payables and accrued expenses* ₱79,185,853 ₱- ₱- ₱79,185,853

Other long-term liabilities* - - 1,085,116 1,085,116
₱79,185,853 ₱- ₱1,085,116 ₱80,270,969

*Excludes ARO and taxes payable which are not financial instruments.
Derivative Instrument

Projected Swap Coupons:
Interest Rate Swaps-USD ₱- ₱- ₱- ₱- ₱- ₱-
Cross Currency Swaps ₱999,969 ₱739,779 ₱1,424,912 ₱1,331,827 ₱181,695 ₱180,434
Principal Only Swaps ₱- ₱787,188 ₱- ₱2,030,153 ₱- ₱1,015,738

Projected Principal Exchanges:
Forward Purchase of USD $18,250 ₱1,040,123 $- ₱- $- ₱-
Forward Sale of USD ₱- $- ₱- $- ₱- $-
FX Swap $236,500 ₱13,326,147 $- ₱- $- ₱-
Cross Currency Swaps- PHP ₱- ₱2,298,221 ₱- ₱4,551,442 ₱- ₱8,239,331
Cross Currency Swaps- USD $43,550 $- $88,800 $- $161,550 $-
Principal Only Swaps- PHP ₱- ₱1,008,600 ₱- ₱13,109,875 ₱- ₱20,039,800
Principal Only Swaps- USD $20,000 $- $270,000 $- $410,000 $-
31 Financial Assets and Liabilities
31.1 Categories of Financial Assets and Financial Liabilities

The table below presents the carrying value of Globe Group’s financial instruments by category
as of December 31 based on the classification requirements of PFRS 9:
2023 2022
(In Thousand Pesos)
Financial Assets
Derivative assets:
Derivative assets designated as cash flow hedges (FVOCI) ₱4,713,641 ₱5,099,882
Derivative assets not designated as hedges (FVPL) 3,323 29,452
Financial assets at FVOCI:
Investment in equity securities 3,661,987 3,149,566
Financial assets at FVPL:
Investment in debt securities 150,739 128,932
Financial assets at amortized cost
Cash and cash equivalents 16,645,077 18,033,785
Trade receivables – net 18,097,898 23,563,414
Contract assets – net 6,223,595 6,891,455
Non-trade receivables 5,383,670 2,426,933
Loans receivable from related parties 3,864,935 3,228,935
₱58,744,865 ₱62,552,354
Financial Liabilities:
Derivative liabilities
Derivative liabilities designated as cash flow hedges (FVOCI) ₱424,555 ₱447,955
Derivative liabilities not designated as hedges (FVPL) 57,627 161,383
Financial liabilities at amortized cost
Trade payables and accrued expenses* 76,520,166 79,185,853
Loans payable 249,955,569 233,204,659
Other long term liabilities** 1,137,748 1,085,116
₱328,095,665 ₱314,084,966
*Trade payables and accrued expenses do not include taxes payables which are not considered financial liabilities.
**Other long term liabilities do not include ARO and taxes payable which are not considered financial liabilities.
31.2 Offsetting Financial Assets and Financial Liabilities
The Globe Group has financial instruments that have offsetting arrangements as follows:
Reported amounts in Amounts offset under

Amounts the consolidated master netting
Gross offset under statements of arrangements or other
amounts PAS 32 financial position similar contracts Net exposure
(In Thousand Pesos)
December 31, 2023
Derivative assets ₱4,716,964 ₱- ₱4,716,964 (₱468,087) ₱4,248,877
Derivative liabilities 482,182 - 482,182 (468,087) 14,095
Traffic settlements
receivable (Note 6) 2,009,595 (885,219) 1,124,376 - 1,124,376
Traffic settlements
payable (Note 15) 1,460,592 (885,219) 575,373 - 575,373
December 31, 2022
Derivative assets ₱5,129,334 ₱- ₱5,129,334 (₱480,789) ₱4,648,545
Derivative liabilities 609,338 - 609,338 (480,789) 128,549
Traffic settlements
receivable (Note 6) 2,589,073 (1,098,910) 1,490,163 - 1,490,163
Traffic settlements
payable (Note 15) 1,833,660 (1,098,910) 734,750 - 734,750
The Globe Group makes use of master netting agreements with counterparties with whom a significant
volume of transactions are undertaken. Such arrangements provide for single net settlement of all
financial instruments covered by the agreements in the event of default on any one contract. Master
netting arrangements do not normally result in an offset of balance sheet assets and liabilities unless
certain conditions for offsetting under PAS 32 apply.
Although master netting arrangements may significantly reduce credit risk, it should be noted that:
• Credit risk is eliminated only to the extent that amounts due to the same counterparty will be
settled after the assets are realized; and
• The extent to which overall credit risk is reduced may change substantially within a short period
because the exposure is affected by each transaction subject to the arrangement and fluctuations
in market factors.
31.3 Fair Values of Financial Assets and Financial Liabilities
The table below presents a comparison of carrying amounts and estimated fair values of all the Globe
Group’s financial instruments as of December 31:
2023 2022
Carrying Fair Carrying Fair
Value Value Value Value
(In Thousand Pesos)
Financial Assets
Derivative assets1 ₱4,716,964 ₱4,716,964 ₱5,129,334 ₱5,129,334
Investment in debt and equity securities1 3,812,726 3,812,726 3,278,498 3,278,498
₱8,529,690 ₱8,529,690 ₱8,407,832 ₱8,407,832
Financial Liabilities
Derivative liabilities1 ₱482,182 ₱482,182 ₱609,338 ₱609,338
Loans payables 2 249,955,569 250,895,575 233,204,659 229,665,640
₱250,437,751 ₱251,377,757 ₱233,813,997 ₱230,274,978

1
Measured at fair value on a recurring basis
2
Fair value is disclosed only in the Notes to Financial Statements
The following discussions are methods and assumptions used to estimate the fair value of each class
of financial instrument for which it is practicable to estimate such value.
31.3.1 Non-Derivative Financial Instrument

The fair values of cash and cash equivalents, trade receivables, contract assets, non-trade receivables,
trade payables and accrued expenses are approximately equal to their carrying amounts considering
the short-term maturities of these financial instruments.
The fair value of loans receivable from related parties was estimated based on the present value of all
future cash flows discounted using the prevailing market rate of interest for a similar instrument. The
resulting fair value of loans receivable from related parties approximates the carrying amount.
The fair value of investments in debt and equity securities are based on:
• Level 1 - Quoted prices of similar instruments
• Level 2 - Recent funding round prices of identical or similar instruments
• Level 3 - Sales enterprise value multiple of comparable companies ranging from 1.5x to 13.7x in
2023 and 1.1x to 13.7x in 2022
For variable rate loans payable that reprice every three months, the carrying value approximates the
fair value because of recent and regular repricing based on current market rates. For variable rate
loans payable that reprice every six months, the fair value is determined by discounting the principal
amount plus the next interest payment using the prevailing market rate for the period up to the next
repricing date.
For noninterest bearing and fixed rate loans payable, the fair value was estimated as the present value
of all future cash flows discounted using the prevailing market rate of interest for a similar instrument.
31.3.2 Derivative Instrument

The fair value of freestanding and embedded forward exchange contracts is calculated by using the
interest rate parity concept.
The fair values of interest rate swaps and cross currency swap transactions are determined using
valuation techniques with inputs and assumptions that are based on market observable data and
conditions and reflect appropriate risk adjustments that market participants would make for credit and
liquidity risks existing at the end each of reporting period. The fair value of interest rate swap
transactions is the net present value of the estimated future cash flows. The fair values of currency and
cross currency swap transactions are determined based on changes in the term structure of interest rates
of each currency and the spot rate.
The fair values were tested to determine the impact of credit valuation adjustments. However, the
impact is immaterial given that the Globe Group deals its derivatives with large foreign and local
banks with very minimal risk of default.
31.3.3 Fair Value Hierarchy

The following tables provide the fair value measurement hierarchy of the Globe Group’s assets and
liabilities:
Fair value measurement using
Level 1 Level 2 Level 3 Total

Financial Assets
Derivative assets ₱- ₱4,716,964 ₱- ₱4,716,964
Investment in debt and equity securities 648,240 2,387,863 776,623 3,812,726
Derivative liabilities - 482,182 - 482,182
Loans payable - 250,895,575 - 250,895,575
2022
Financial Assets
Derivative assets ₱- ₱5,129,334 ₱- ₱5,129,334
Investment in debt and equity securities 528,240 2,363,527 386,731 3,278,498
Derivative liabilities - 609,338 - 609,338
Loans payable - 229,665,640 - 229,665,640
There were no transfers from Level 1 and Level 2 fair value measurements for the years ended
32 Operating Segment Information
The Globe Group’s reportable segments consist of: (1) mobile communications services; and
(2) wireline communication services; which the Globe Group operates and manages as strategic
business units and organize by products and services. The Globe Group presents its various operating
segments based on segment net income.
Intersegment transfers or transactions are entered into under the normal commercial terms and
conditions that would also be available to unrelated third parties. Segment revenue, segment expense
and segment result include transfers between business segments. Those transfers are eliminated in
consolidation.
Most of the Globe Group’s revenues are derived from operations within the Philippines, hence, the Globe
Group does not present geographical information required by PFRS 8, Operating Segments. The Globe Group
does not have a single customer that will meet the 10% reporting criteria.
The Globe Group also presents the different product types that are included in the report that is
regularly reviewed by the chief operating decision maker in assessing the operating segments
performance.
Segment assets and liabilities are not measures used by the chief operating decision maker since the
assets and liabilities are managed on a group basis.
The Globe Group’s segment information is as follows:
2023
Mobile Wireline
Communications Communications
Services Services Others Consolidated
(In Thousand Pesos)
REVENUES:
Service revenues:
External customers:
Data ₱90,894,707 ₱18,319,203 ₱- ₱109,213,910
Voice 13,505,925 1,595,674 - 15,101,599
SMS 7,975,319 - - 7,975,319
Broadband - 25,111,748 - 25,111,748
Others - - 4,930,908 4,930,908
112,375,951 45,026,625 4,930,908 162,333,484
Nonservice revenues:
External customers 17,457,309 262,738 110,924 17,830,971
Segment revenues 129,833,260 45,289,363 5,041,832 180,164,455
Operating costs and expenses-net (64,308,442) (30,812,730) (3,616,537) (98,737,709)
EBITDA 65,524,818 14,476,633 1,425,295 81,426,746
Depreciation and amortization (32,471,473) (14,599,070) (285,500) (47,356,043)
EBIT 33,053,345 (122,437) 1,139,795 34,070,703
Finance cost and non-operating expenses – net (1,343,333) (89,900) (221,800) (1,655,033)
NET INCOME (LOSS) BEFORE TAX 31,710,012 (212,337) 917,995 32,415,670
Provision for income tax (7,654,942) 45,664 (228,382) (7,837,660)
NET INCOME (LOSS) ₱24,055,070 (₱166,673) ₱689,613 ₱24,578,010
Intersegment revenues (₱1,091,461) (₱2,028,645) (₱6,841,972) (₱9,962,078)

Core net income after tax ₱18,915,767
Operating costs and expenses - net

Operating expenses-net1 (43,149,184) (27,064,200) (3,476,250) (73,689,634)
Cost of inventories sold (17,289,667) (797,580) (129,797) (18,217,044)
Impairment/recovery and other losses2 (3,040,665) (2,412,838) (10,476) (5,463,979)
Interconnect costs (828,926) (538,112) (14) (1,367,052)
(64,308,442) (30,812,730) (3,616,537) (98,737,709)
Finance costs and non-operating charges

Finance costs (11,912,325) (198,200) (35,354) (12,145,879)
Equity share in net profit (loss) of JVs 1,851,350 363,411 - 2,214,761
Interest income 418,031 112,729 146,810 677,570
Other non-operating income-net3 8,299,611 (367,840) (333,256) 7,598,515
(1,343,333) (89,900) (221,800) (1,655,033)
Cash Flows
Net cash from (used in):
Operating activities ₱65,974,197 ₱14,292,582 ₱180,101 ₱80,446,880
Investing activities (35,606,141) (18,821,989) (50,472) (54,478,602)
Financing activities (25,303,012) (2,222,596) (33,166) (27,558,774)
1
Operating expenses-net primarily includes general, selling and admin expenses net of income from leases, management fees and other operating income
2
Impairment and other losses includes impairment loss on receivables, contract assets, inventories, provision for probable losses and other assets
3
Other non-operating income primarily includes, gain on sale and leaseback of telecom towers – net under mobile communications services, net gain (loss)
on derivative instruments, net foreign exchange gain (loss), net gain on disposal of property and equipment, net gain (loss) on ARO and other non-operating
income/charges
2022
Mobile Wireline
(In Thousand Pesos)
REVENUES:
Service revenues:
External customers:
Data ₱83,758,035 ₱17,198,099 ₱- ₱100,956,134
Voice 14,916,566 1,989,174 - 16,905,740
SMS 8,845,422 - - 8,845,422
Broadband - 27,093,520 - 27,093,520
Others - - 4,178,519 4,178,519
107,520,023 46,280,793 4,178,519 157,979,335
EBITDA 61,719,758 14,899,935 2,472,326 79,092,019
EBIT 31,192,682 (49,904) 2,295,945 33,438,723
Finance cost and non-operating expenses – net (423,221) 10,966,676 118,272 10,661,727
NET INCOME (LOSS) BEFORE TAX 30,769,461 10,916,772 2,414,217 44,100,450
Provision for income tax (6,937,464) (2,040,252) (518,685) (9,496,401)
NET INCOME (LOSS) ₱23,831,997 ₱8,876,520 ₱1,895,532 ₱34,604,049


Cost of inventories sold (16,696,797) (887,733) (107,147) (17,691,677)
Interconnect costs (838,438) (523,871) - (1,362,309)
(62,365,084) (31,770,891) (1,812,729) (95,948,704)

Finance costs (9,887,855) (183,339) (20,095) (10,091,289)
Equity share in net profit (loss) of JVs 818,411 264,791 - 1,083,202
Interest income 274,617 23,619 41,873 340,109
Other non-operating income-net3 8,371,606 10,861,605 96,494 19,329,705
(423,221) 10,966,676 118,272 10,661,727
Cash Flows
Operating activities ₱51,824,698 ₱13,054,664 ₱275,640 ₱65,155,002
Investing activities (60,589,661) (13,198,943) (62,655) (73,851,259)
Financing activities 3,319,075 (1,113,272) (2,525) 2,203,278
1
2
3
Other non-operating income primarily includes gain on sale of controlling interest on data center business under wireline services, gain on sale and
leaseback of telecom towers – net under mobile communications services, net gain (loss) on derivative instruments, net foreign exchange gain (loss), net gain
on disposal of property and equipment, net gain (loss) on ARO and other non-operating income/charges
2021
Mobile Wireline
(In Thousand Pesos)
REVENUES:
Service revenues:
External customers:
Data ₱77,812,713 ₱14,170,100 ₱- ₱91,982,813
Voice 17,228,714 2,280,357 - 19,509,071
SMS 9,350,815 - - 9,350,815
Broadband - 29,391,454 - 29,391,454
Others - - 2,028,680 2,028,680
104,392,242 45,841,911 2,028,680 152,262,833
EBITDA 59,309,360 15,186,191 426,330 74,921,881
EBIT 31,634,716 1,837,104 317,069 33,788,889
Finance cost and non-operating expenses – net (4,429,178) (336,086) 16,147 (4,749,117)
NET INCOME (LOSS) BEFORE TAX 27,205,538 1,501,018 333,216 29,039,772
Provision for income tax (4,999,470) (274,771) (41,674) (5,315,915)
NET INCOME (LOSS) ₱22,206,068 ₱1,226,247 ₱291,542 ₱23,723,857


Cost of inventories sold (15,504,924) (1,738,781) (64,069) (17,307,774)
Interconnect costs (862,790) (319,591) - (1,182,381)
(60,282,880) (31,619,919) (1,671,778) (93,574,577)

Finance costs (8,644,357) (61,258) (35,148) (8,740,763)
Equity share in net profit (loss) of JVs 824,436 57,099 - 881,535
Interest income 137,391 2,019 10,098 149,508
Other non-operating income-net3 3,253,352 (333,946) 41,197 2,960,603
(4,429,178) (336,086) 16,147 (4,749,117)
Cash Flows
Operating activities ₱46,272,645 ₱18,845,757 ₱22,101 65,140,503
Investing activities (76,852,553) (19,710,568) 1,140 (96,561,981)
Financing activities 36,524,327 (461,636) (1,051) 36,061,640
1
2
3
Other non-operating income primarily includes net gain (loss) on derivative instruments, net foreign exchange gain (loss), net gain on disposal of property
and equipment, net gain (loss) on ARO and other non-operating income/charges
The reconciliation of the EBITDA to income before income tax presented in the consolidated
statements of comprehensive income is shown below:
Notes 2023 2022 2021

(In Thousand Pesos)
EBITDA ₱81,426,746 ₱79,092,019 ₱74,921,881
Depreciation and amortization 24 (47,356,043) (45,653,296) (41,132,992)
Financing costs 25 (12,145,879) (10,091,289) (8,740,763)
Impairment of property and equipment 26 (92,441) - (1,155,691)
Equity in net income (losses) of joint ventures 14 2,214,761 1,083,202 881,535
Gain on deemed sale of investment in Mynt 14, 22 - - 4,344,037
Foreign exchange gain (loss) - net 22 1,042,052 (5,343,019) (3,656,218)
Gain (loss) on derivative instruments 22 (740,686) 5,797,800 3,214,633
Interest income 21 677,570 340,109 149,508
Gain on disposal of property and equipment - net 371,655 321,354 152,565
Gain on sale of controlling interest on data center 14.3
business - 10,511,945 -
Gain on sale and leaseback of telecom towers - net 11 7,258,378 8,260,927 -
Gain on sale of investment in HealthNow - 75,245 -
Gain on deemed sale of investment in Konsulta - 26,410 -
Gain from deconsolidation of subsidiary 14, 22 76,669 - -
Impairment of goodwill 26 (154,614) - -
Other items (162,498) (320,957) 61,277
The reconciliation of core net income after tax (core NIAT) to NIAT is shown below:
2023 2022 2021

(In Thousand Pesos)
Core NIAT ₱18,915,767 ₱19,168,650 ₱21,246,377
Impairment of property and equipment - - (866,768)
Gain on deemed sale of investment in Mynt - - 3,692,431
Foreign exchange gains (losses) 781,538 (4,007,264) (2,742,164)
Gain (loss) on derivatives instruments (555,515) 4,348,350 2,410,975
Gain on sale of controlling interest on data
center business - 8,680,771 -
Gain on sale and leaseback of telecom towers –
net 5,443,784 6,195,695 -
Gain on deemed sale of investment in Konsulta - 22,449 -
Others (7,564) 195,398 (16,994)
NIAT ₱24,578,010 ₱34,604,049 ₱23,723,857
32.1 Mobile Communications Services

This reporting segment is made up of digital cellular telecommunications services which includes
mobile voice, mobile SMS and mobile data.
Globe Telecom offers its mobile communications services to consumers, corporate and small and
medium enterprise (SME) clients through the following three (3) brands: Globe Postpaid, Globe
Prepaid and Touch Mobile.
32.1.1 Mobile Voice
Mobile voice include local, national and international long-distance call services. In addition to the
Globe Group’s standard, pay-per-use rates, subscribers can choose from bulk and unlimited voice
offerings for all-day, and in several denominations.
32.1.2 Mobile SMS

Mobile SMS consist of local and international revenues from inbound and outbound SMS.
32.1.3 Mobile Data
Mobile Data services allow subscribers to access the internet using their internet-capable mobile
devices or laptops with USB modems. Mobile data also includes local and international revenues from
value-added services such as content downloading, mobile commerce services, and other add-on
VAS.
32.2 Wireline Communications Services

This reporting segment is made up of fixed line voice, corporate data and home broad band services.
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.
32.2.1 Fixed Line Voice

Globe’s fixed line voice services include local, national and international long-distance calling services
in postpaid and prepaid packages through its Globelines brand. 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.
32.2.2 Corporate Data

Corporate data services include end-to-end data solutions customized according to the needs of
businesses. Globe’s 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. Among the products and solutions are as follows:
• Connectivity - Globe connectivity services provides an up to speed with a fast and resilient
connection powered by dedicated and reliable technologies. This service includes domestic data,
international data, and other internet services.
• Cloud computing - Globe’s range of cloud computing services provides improved efficiency and
agility in the face of evolving business environments while keeping costs low
• Data Centers - Globe Data Center offers outsourced data center hosting and management for a
superior experience that goes beyond technology.
• Cybersecurity - Globe cybersecurity provides enterprises the access to the best-in-class tool sets,
hardware, software, and even niche technology experts to handle security threats and IT
infrastructure in a cost-effective manner.
• Business Continuity - Globe business continuity services provides the right digital solutions for
uninterrupted business operations. The product offers seamless connectivity through Prepaid
Mobile WiFi or Corporate Managed Broadband, empowered remote workforce using
collaboration tools, and security for their business operations with Backup-as-a-Service (BaaS) and
Disaster-Recovery-as-a-Service (DRaaS), among others.
• Business Applications - Globe offers a diverse range of business applications solutions to
streamline and enhance the business’ operations, and raise efficiency, productivity, and customer
satisfaction.
32.2.3 Home Broadband

Globe offers wired and fixed wireless Broadband services, across various technologies and connectivity
speeds for its residential and business customers. Globe Home Broadband consists of wired
Broadband packages bundled with voice, or Broadband data-only services.
32.3 Others
The Globe Group offers non-telecommunications products and services in e-commerce, adtech and
manpower among others.
33 Significant Agreements
33.1 Agreements and Commitments with Other Carriers

Globe Telecom, Innove and BTI have existing international telecommunications service agreements
with various foreign administrations and interconnection agreements with local telecommunications
companies for their various services. Globe Telecom also has international roaming agreements
with other foreign operators, which allow its subscribers access to foreign networks. The
agreements provide for sharing of toll revenues derived from the mutual use of telecommunication
networks.
The interconnect costs for the period 2023, 2022 and 2021 amounted to ₱1,367.05 million,
₱1,362.31 million and ₱1,182.38 million, respectively.
Net traffic settlement receivables amounted to ₱1,124.38 million and ₱1,490.16 million while net
traffic settlement payables amounted to ₱575.37 million and ₱734.75 million as of
December 31, 2023 and 2022, respectively (see Notes 6 and 15).
33.2 Arrangements and Commitments with Suppliers

The Globe Group has entered into agreements with various suppliers for the development or
construction, delivery and installation of property and equipment. Under the terms of these
agreements, advance payments and down payments are made to suppliers upon submission of
required documentation. While the development or construction is in progress, project costs are
accrued based on the project status. Billings are based on the progress of the development or
construction and advance payments are being applied proportionately to the milestone billings. When
development or construction and installation are completed and the property and equipment is ready
for service, the value of unbilled but delivered goods or services from the related purchase orders is
accrued.
The accrued project costs as of December 31, 2023 and 2022 included in the “Trade payables and
accrued expenses” account in the consolidated statements of financial position amounted to
₱40,311.98 million and ₱34,857.38 million , respectively (see Note 15). The settlement of these
liabilities is dependent on the payment terms and project milestones agreed with the suppliers and
contractors. As of December 31, 2023 and 2022, the unapplied advances made to suppliers and
contractors relating to purchase orders issued amounted to ₱19,863.87 million and ₱36,209.35
million, respectively (see Note 10).
34 Contingencies
The Globe Group is contingently liable for various claims arising in the ordinary conduct of business and
certain tax assessments which are either pending decision by the courts or are being contested, the
outcome of which are not presently determinable. In the opinion of management and legal counsel, the
possibility of outflow of economic resources to settle the contingent liability is remote.
Interconnection Charge for Short Messaging Service
On October 10, 2011, the NTC issued Memorandum Circular (MC) No. 02-10-2011 titled Interconnection
Charge for Short Messaging Service requiring all public telecommunication entities to reduce their
interconnection charge to each other from ₱0.35 to ₱0.15 per text, which Globe Telecom complied as early
as November 2011. On December 11, 2011, the NTC One Stop Public Assistance Center (OSPAC) filed a
complaint against Globe Telecom, Smart and Digitel alleging violation of the said MC No. 02-10-2011 and
asking for the reduction of SMS off-net retail price from P1.00 to P0.80 per text. Globe Telecom filed its
response maintaining the position that the reduction of the SMS interconnection charges does not
automatically translate to a reduction in the SMS retail charge per text.
On November 20, 2012, the NTC rendered a decision directing Globe Telecom to:
▪ Reduce its regular SMS retail rate from P1.00 to not more than ₱0.80;
▪ Refund/reimburse its subscribers the excess charge of ₱0.20; and
▪ Pay a fine of ₱200.00 per day from December 1, 2011 until date of compliance.
On May 7, 2014, NTC denied the Motion for Reconsideration (MR) filed by Globe Telecom last
December 5, 2012 in relation to the November 20, 2012 decision. Globe Telecom’s assessment is that
Globe Telecom is in compliance with the NTC Memorandum Circular No. 02-10-2011. On June 9, 2014,
Globe Telecom filed petition for review of the NTC decision and resolution with the Court of Appeals (CA).
The CA granted the petition in a resolution dated September 3, 2014 by issuing a 60-day temporary
restraining order on the implementation of Memorandum Circular 02-10-2011 by the NTC. On October 15,
2014, Globe Telecom posted a surety bond to compensate for possible damages as directed by the CA.
On June 27, 2016, the CA rendered a decision reversing the NTC’s abovementioned decision and
resolution requiring telecommunications companies to cut their SMS rates and return the excess amount
paid by subscribers. The CA said that the NTC order was baseless as there is no showing that the reduction
in the SMS rate is mandated under MC No. 02-10-2011; there is no showing, either that the present P1.00
per text rate is unreasonable and unjust, as this was not mandated under the memorandum. Moreover,
under the NTC’s own MC No. 02-05-2008, SMS is a value added service (VAS) whose rates are
deregulated. The respective motions for reconsideration filed by NTC and that of intervenor Bayan Muna
Party List (Bayan Muna) Representatives Neri Javier Colmenares and Carlos Isagani Zarate were both
denied.
The NTC thus elevated the CA’s ruling to the Supreme Court (SC) via a Petition for Review on Certiorari
dated September 15, 2017.
For its part, Bayan Muna filed its own Petition for Review on Certiorari of the CA’s Decision. On January 4,
2018, Globe received a copy of the SC’s Resolution dated November 6, 2017, requiring it to comment on
said petition of Bayan Muna. Subsequently, on February 21, 2018, Globe received a copy of the SC’s
Resolution dated December 13, 2017 consolidating the Petitions for Review filed by Bayan Muna and NTC,
and requiring Globe to file its comment on the petition for review filed by NTC. Thus, on April 2, 2018,
Globe filed its Consolidated Comment on both Bayan Muna and the NTC’s petitions for review. On
September 18, 2018, Globe received a copy of Bayan Muna’s Consolidated Reply to Globe’s Consolidated
Comment and Digitel and Smart’s Comment.
Globe Telecom believes that it did not violate NTC MC No. 02-10-2011 when it did not reduce its SMS
retail rate from Php 1.00 to Php 0.80 per text, and hence, would not be obligated to refund its subscribers.
However, if it is ultimately decided by the Supreme Court (on the appeal taken thereto by the NTC from
the adverse resolution of the CA) that Globe Telecom is not compliant with said circular, Globe may be
contingently liable to refund to its subscribers the ₱0.20 difference (between ₱1.00 and ₱0.80 per text)
reckoned from November 20, 2012 until said decision by the SC becomes final and executory.
Management does not have an estimate of the potential claims currently.
Guidelines on Unit of Billing of Mobile Voice Service
On July 23, 2009, the NTC issued NTC MC No. 05-07-2009 (Guidelines on Unit of Billing of Mobile Voice
Service). The MC provides that the maximum unit of billing for the Cellular Mobile Telephone System
(CMTS) whether postpaid or prepaid shall be six (6) seconds per pulse. The rate for the first two (2) pulses,
or equivalent if lower period per pulse is used, may be higher than the succeeding pulses to recover the
cost of the call set-up. Subscribers may still opt to be billed on a one (1) minute per pulse basis or to
subscribe to unlimited service offerings or any service offerings if they actively and knowingly enroll in the
scheme.
On December 28, 2010, the Court of Appeals (CA) rendered its decision declaring null and void and
reversing the decisions of the NTC in the rates applications cases for having been issued in violation of
Globe Telecom and the other carriers’ constitutional and statutory right to due process. However, while the
decision is in Globe Telecom’s favor, there is a provision in the decision that NTC did not violate the right
of petitioners to due process when it declared via circular that the per pulse billing scheme shall be the
default.
On January 21, 2011, Globe Telecom and two other telecom carriers, filed their respective Motions for
Partial Reconsideration (MPR) on the pronouncement that “the Per Pulse Billing Scheme shall be the
default”. The petitioners and the NTC filed their respective Motion for Reconsideration, which were all
denied by the CA on January 19, 2012.
On March 12, 2012, Globe and Innove elevated to the SC the questioned portions of the Decision and
Resolution of the CA dated December 28, 2010 and its Resolution dated January 19, 2012. The other
service providers, as well as the NTC, filed their own petitions for review. The adverse parties have filed
their comments on each other’s petitions, as well as their replies to each other’s comments. Parties were
required t file their respective Memoranda and Globe filed its Memorandum on May 25, 2018. The case is
now submitted for resolution.
Right of Innove to Render Services and Build Telecommunications Infrastructure in BGC
PLDT and its affiliate, Bonifacio Communications Corporation (BCC) and Innove and Globe Telecom are in
litigation over the right of Innove to render services and build telecommunications infrastructure in the
Bonifacio Global City (BGC). In the case filed by Innove before the NTC against BCC, PLDT and the Fort
Bonifacio Development Corporation (FBDC), the NTC has issued a Cease and Desist Order preventing BCC
from performing further acts to interfere with Innove’s installations in the BGC.
On January 21, 2011, BCC and PLDT filed with the CA a Petition for Certiorari and Prohibition against the
NTC, et al. seeking to annul the Order of the NTC dated October 28, 2008 directing BCC, PLDT and FBDC
to comply with the provisions of NTC MC 05-05-02 and to cease and desist from performing further acts
that will prevent Innove from implementing and providing telecommunications services in the Fort
Bonifacio Global City pursuant to the authorization granted by the NTC. On April 25, 2011, Innove
Communications, filed its comment on the Petition.
On August 16, 2011, the CA ruled that the petition against Innove and the NTC lacked merit, holding that
neither BCC nor PLDT could claim the exclusive right to install telecommunications infrastructure and
providing telecommunications services within the BGC. Thus, the CA denied the petition and dismissed the
case. PLDT and BCC filed their motions for reconsideration thereto, which the CA denied.
On July 6, 2012, PLDT and BCC assailed the CA’s rulings via a petition for review on certiorari with the
Supreme Court. Innove and Globe filed their comment on said petition on January 14, 2013, to which said
petitioners filed their reply on May 21, 2013. On December 22, 2021, Innove filed its Memorandum with
the Supreme Court in compliance with Court’s Resolution dated October 06, 2021. The Supreme Court
subsequently issued Resolution dated September 14, 2022, directing the Clerk of Court of the Court of
Appeals, Manila to elevate the complete records of CA G.R. SP No. 117535 to Supreme Court within ten
(10) days from receipt of said Resolution. In its Decision dated April 19, 2023, the Supreme Court
dismissed BCC and PLDT's petition for lack of merit and affirmed the Court of Appeals’ Decision dated
August 16, 2011 and the Resolution dated May 18, 2012 in CA G.R. SP No. 117535, sustaining the
NTC’s cease and desist order versus the enforcement by PLDT and BCC of their so-called contractual
exclusivity to provide telecommunications services in BGC. Finally, on November 6, 2023, Innove
received the Supreme Court’s Entry of Judgement certifying that on April 19, 2023, a decision was
rendered and that the same has, on July 26, 2023, become final and executory and recorded in the
Book of Entries of Judgments.
Acquisition by Globe Telecom and PLDT of the Entire Issued and Outstanding Shares of VTI
In a letter dated June 7, 2016 issued by Philippine Competition Commission (PCC) to Globe Telecom, PLDT,
SMC and VTI regarding the Joint Notice filed by the aforementioned parties on May 30, 2016, disclosing
the acquisition by Globe Telecom and PLDT of the entire issued and outstanding shares of VTI, the PCC
claims that the Notice was deficient in form and substance and concludes that the acquisition cannot be
claimed to be deemed approved.
On June 10, 2016, Globe Telecom formally responded to the letter reiterating that the Notice, which sets
forth the salient terms and conditions of the transaction, was filed pursuant to and in accordance with MC
No. l6-002 issued by the PCC. MC No. 16-002 provides that before the implementing rules and regulations
for RA No. 10667 (the Philippine Competition Act of 2015) come into full force and effect, upon filing with
the PCC of a notice in which the salient terms and conditions of an acquisition are set forth, the transaction
is deemed approved by the PCC and as such, it may no longer be challenged. Further, Globe Telecom
clarified in its letter that the supposed deficiency in form and substance of the Notice is not a ground to
prevent the transaction from being deemed approved. The only exception to the rule that a transaction is
deemed approved is when a notice contains false material information. In this regard, Globe Telecom
stated that the Notice does not contain any false information.
On June 17, 2016, Globe Telecom received a copy of the second letter issued by PCC stating that
notwithstanding the position of Globe Telecom, it was ruling that the transaction was still subject for
review.
On July 12, 2016, Globe Telecom asked the CA to stop the government's anti-trust body from reviewing
the acquisition of SMC's telecommunications business. Globe Telecom maintains the position that the deal
was approved after Globe Telecom notified the PCC of the transaction and that the anti-trust body violated
its own rules by insisting on a review. On the same day, Globe Telecom filed a Petition for Mandamus,
Certiorari and Prohibition against the PCC, docketed as CA-G.R. SP No. 146538. On July 25, 2016, the CA,
through its 6th Division issued a resolution denying Globe Telecom’s application for TRO and injunction
against PCC’s review of the transaction. In the same resolution, however, the CA required the PCC to
comment on Globe Telecom's petition for certiorari and mandamus within 10 days from receipt thereof.
The PCC filed said comment on August 8, 2016. In said comment, the PCC prayed that the ₱70.00 billion
deal between PLDT-Globe Telecom and San Miguel be declared void for PLDT and Globe Telecom’s
alleged failure to comply with the requirements of the Philippine Competition Act of 2015. The PCC also
prayed that the CA direct Globe Telecom to: cease and desist from further implementing its co-acquisition
of the San Miguel telecommunications assets; undo all acts consummated pursuant to said acquisition; and
pay the appropriate administrative penalties that may be imposed by the PCC under the Philippine
Competition Act for the illegal consummation of the subject acquisition.
Meanwhile, PLDT filed a similar petition with the CA, docketed as CA G.R. SP No. 146528, which was raffled
off to its 12th Division. On August 26, 2016, PLDT secured a TRO from said court. Thereafter, Globe
Telecom’s petition was consolidated with that of PLDT, before the 12th Division. The consolidation
effectively extended the benefit of PLDT’s TRO to Globe Telecom. The parties were required to submit their
respective Memoranda, after which, the case shall be deemed submitted for resolution.
On February 17, 2017, the CA issued a Resolution denying PCC’s Motion for Reconsideration dated
September 14, 2016 for lack of merit. In the same Resolution, the Court granted PLDT’s Urgent Motion for
the Issuance of a Gag Order and ordered the PCC to remove the offending publication from its website
and also to obey the sub judice rule and refrain from making any further public pronouncements
regarding the transaction while the case remains pending. The Court also reminded the other parties, PLDT
and Globe, to likewise observe the sub judice rule. For this purpose, the Court issued its gag order
admonishing all the parties “to refrain, cease and desist from issuing public comments and statements that
would violate the sub judice rule and subject them to indirect contempt of court. The parties were also
required to comment within ten days from receipt of the Resolution, on the Motion for Leave to Intervene,
and Admit the Petition-in Intervention dated February 7, 2017 filed by Citizenwatch, a non-stock and non-
profit association.
On April 18, 2017, PCC filed a petition before the SC docketed as G.R. No. 230798, to lift the CA's order
that has prevented the review of the sale of San Miguel Corp.'s telecommunications unit to PLDT Inc. and
Globe Telecom. On April 25, 2017, Globe filed before the SC a Motion for Intervention with Motion to
Dismiss the petition filed by the PCC.
As of June 30, 2017, the SC did not issue any TRO on the PCC's petition to lift the injunction issued by the
CA. Hence, the PCC remains barred from reviewing the SMC deal.
On July 26, 2017, Globe received the SC en banc Resolution granting Globe's Extremely Urgent Motion to
Intervene. In the same Resolution, the Supreme Court treated as Comment, Globe's Motion to Dismiss with
Opposition Ad Cautelam to PCC's Application for the Issuance of a Writ of Preliminary Injunction and/or
TRO.
On August 31, 2017, Globe received another Resolution of the SC en banc, requiring the PCC to file a
Consolidated Reply to the Comments respectively filed by Globe and PLDT, within ten (10) days from
notice.
On 16 November 2017, after several extensions of time were granted to the PCC, the Corporation through
its external counsel, received a copy of the Consolidated Reply dated 7 November 2017 filed by the PCC.
In the meantime, in a Decision dated October 18, 2017, the CA, in CA-G.R. SP No. 146528 and CA-G.R. SP
No. 146538, granted Globe and PLDTs Petition to permanently enjoin and prohibiting PCC from reviewing
the acquisition and compelling the PCC to recognize the same as deemed approved. PCC elevated the case
to the SC via Petition for Review on Certiorari.
On 1 June 2018, the Corporation received a copy of the Court of Appeals’ Notice of Resolution dated 25
May 2018 and attached Resolution dated 24 May 2018 denying Citizenwatch’s Motion for Partial
Reconsideration on the ground of lack of legal standing and mootness. No further action has been taken
since the Resolution dated 24 May 2018 of the Court of Appeals.
Co-use of frequencies by PLDT/Smart and Globe Telecom as a result of the acquisition of controlling shares
in VTI
On January 21, 2019, Globe filed its Comment to a petition filed by lawyers Joseph Lemuel Baligod and
Ferdinand Tecson before the Supreme Court, against the NTC, PCC, Liberty Broadcasting Network, Inc.,
(LBNI), Bell Telecommunications Inc. (BellTel), Globe, PLDT and Smart, docketed as G.R. No. 242352. The
petition sought to, among others, enjoin PLDT/Smart and Globe from co-using the frequencies assigned to
LBNI and BellTel in view of alleged irregularities in NTC’s assignment of these frequencies to these entities.
In its Comment, Globe argued that the frequencies were assigned in accordance with existing procedures
prescribed by law and that to prevent the use of the frequencies will only result to its being idle and
unutilized. Moreover, in view of the substantial investments made by Globe, for the use of these frequencies,
enjoining its use will cause grave and irreparable injury not only to Globe but to subscribers who will be
deprived of the benefits of fast and reliable telecommunications services. The other Respondents have
likewise filed their respective Comments to the petition.
35 SIM Registration Act

Republic Act No. 11934, or the SIM Registration Act, was signed into law by President Ferdinand
“Bongbong” Marcos Jr. on October 10, 2022. This Act, which is a consolidation of Senate Bill No. 1310
and House Bill No. 14, was passed by the Senate of the Philippines and the House of Representatives
on September 28, 2022.
The SIM Registration Act aims to provide accountability for those using SIMs and aid law enforcement
in tracking perpetrators of crimes committed through phones. This law is seen as one way to boost
government initiatives against scams perpetrated through text and online messages, which have
become more prevalent in recent years.
On December 12, 2022, the National Telecommunications Commission released the Implementing
Rules and Regulations (IRR) of the SIM Registration Act.
Following the law’s passing and effectivity of the IRR, users must register their new SIMs with the
relevant Public Telecommunications Entity to activate them. Meanwhile, all existing SIM subscribers
must register with PTEs within 180 days of the law’s implementation.
Failure to register the SIM within the prescribed period will result in automatic deactivation, and
telecommunication companies can only reactivate this after proper registration has been completed.
Users must also present valid government-issued IDs or similar documents with a photograph to
verify their identity. The law details penalties for violations ranging from ₱100,000 to ₱1 million.
On July 25, 2023, the SIM registration period provided under the IRR of the SIM Registration Act has
ended. Unregistered SIM users were permanently deactivated by July 31, 2023.
36 Events After Reporting Period

Dividend Declaration
On February 6, 2024, the BOD approved the declaration of the first quarter cash dividend of ₱25 per
common share, payable to common stockholders of record as of February 21, 2024. Total dividends
amounting to ₱3.6 billion will be payable on March 7, 2024.
Dividend Policy
On February 6, 2024, the BOD approved the proposed change in the dividend policy to 60% to 90%
(from 60% to 75%) of prior year’s core net income, to be applied starting 2024 dividend declaration.
Index to the Consolidated Financial Statements and Supplementary Schedules
Schedule 1 - Financial Soundness Indicators
Schedule 2 - Reconciliation of retained earnings available for dividend declaration
Schedule 3 - Map of the relationships of the companies within the Group
Schedule 4 - Schedule for Listed Companies with a Recent Offering of Securities to the Public
Schedule 5 - Supplementary Schedules required by Annex 68-J
CREATE.WONDERFUL. 1
Schedule 1
FINANCIAL SOUNDNESS
INDICATORS Formula December 31 December 31
2023 2022
FINANCIAL RATIOS
EBITDA
Interest Coverage Ratio Interest Expense gross of 4.95 7.81
capitalized borrowing costs
Total Debt
Debt to Equity (D/E Ratio) Total Equity
1.56 1.53
Total Assets
Total Asset to Equity Ratio Total Equity
3.82 3.64
Current Assets
Current Ratio Current Liabilities
0.61 0.66
Net Income + Depreciation and

Amortization + Provisions for
Solvency Ratio Doubtful Accounts
0.17 0.21
Total Liabilities
Current Assets – Inventories and

Acid test ratio Supplies – net 0.58 0.63
Current Liabilities
PROFITABILITY MARGINS
EBITDA
EBITDA Margins Service Revenues
50% 50%
Net Income
Net Profit Margin Service Revenues
15% 22%
Net Income
Return on Asset Total Assets
4% 6%
Net Income
Return on Equity Total Average Equity
16% 26%
CREATE.WONDERFUL. 2
Schedule 2
RECONCILIATION OF RETAINED EARNINGS AVAILABLE FOR DIVIDEND DECLARATION

AS OF DECEMBER 31, 2023
Items Amount
(In thousands)
Unappropriated Retained Earnings, beginning ₱20,566,571
Less: Category B – Items that are directly debited to Unappropriated Retained
Earnings
Dividends during the reporting period (14,468,685)
Distribution on capital securities (1,330,619)
Unappropriated Retained Earnings, as adjusted 4,767,267
Net income during the period closed to Retained Earnings 17,516,622
Less: Category C.1 – Unrealized income recognized in the profit or loss during
the reporting period
Unrealized foreign exchange gain for the year (633,080)
Unrealized fair value gain on derivatives net of previously recognized
accumulated unrealized loss (4,497,985)
Category C.1 – Subtotal (5,131,065)
Add: Category C.2 – Unrealized income recognized in the profit or loss in prior
reporting periods but realized in the current reporting period
Unrealized fair value gain on derivatives from prior period realized during
the year 4,950,137
Category C.2 – Subtotal 4,950,137
Adjusted net income during the period 17,335,694
Less: Category F - Other items that should be excluded from the determination
of the amount of available dividends distribution
Deferred tax assets realized during the year (2,104,811)
Unappropriated Retained Earnings, as adjusted, ending ₱19,998,150
CREATE.WONDERFUL. 3
Schedule 3
MAP OF THE RELATIONSHIP OF THE COMPANIES WITHIN THE GROUP

CREATE.WONDERFUL. 4
Schedule 4
SCHEDULE FOR LISTED COMPANIES WITH A RECENT OFFERING OF SECURITIES TO THE

PUBLIC
Globe Telecom formally listed 10,119,047 common shares newly issued to stockholders that
participated in the recently concluded Rights Offer (the “Offer”) on the Philippine Stock Exchange.
The common shares were sold in the Offer at ₱1,680.00 per share, raising proceeds of ₱17.00
billion.
Globe Telecom estimates that the net proceeds from the gross amount of ₱17.00 billion shall
amount to approximately ₱16.80 billion as disclosed in the final prospectus.
Annual Progress Report on the application of proceeds from the offer for the year ended as at
December 31, 2023 are as follows:
(In thousands)
Stock Rights Offering Proceeds ₱16,999,999
Less: Stock rights offer-related disbursements
PSE Filing Fee ₱35,840
SEC Processing and Filing Fee 66,661
PDTC Lodgement Fee 142
Documentary Stamp Tax 5,060
Underwriting and Placement Fee 78,593
Professional and Legal Fees 72,529
Other Related Expenses 1,864 260,689
Net Proceeds ₱16,739,310
Planned Actual Balance of

Application of Actual Disbursement Disbursement FY Offering
Proceeds FY 2022 2023 Proceeds
(In thousands)
Net Proceeds ₱16,739,310 ₱279,677
Less: Loan Repayments 6,695,724 6,695,724 -
Capital Expenditures
Mobile 4,519,614 4,519,614 -
Common Infrastructure 3,414,819 3,414,819 -
Broadband 1,506,538 1,506,538 -
Enterprise Group 602,615 322,938 279,677 -
Total Disbursements 16,739,310 16,459,633 279,677 -
Balance of Proceeds as at
December 31, 2023 ₱-
CREATE.WONDERFUL. 5
SCHEDULE 5A – FINANCIAL ASSETS
DECEMBER 31, 2023
Number of shares
or principal Amount shown Income
Name of Issuing entity and association of each amount of bonds in the balance received and
issue and notes sheet accrued
CREATE.WONDERFUL. 6
SCHEDULE 5B – Amounts Receivable from Directors, Officers, Employees, Related Parties and principal Stockholders (Other than Related parties)
Balance at the Balance at the end

Name and Designation of beginning of period Amounts of period
debtor (January 1, 2023) Additions collected Current Non-current (December 31, 2023)
(In thousands)
Education Loan ₱55,217 ₱142,002 ₱110,492 ₱86,727 ₱- ₱86,727
Hospitalization Loan 45,942 12,544 39,348 19,138 - 19,138
Housing and Renovation Loan 50,951 87,076 82,858 55,169 - 55,169
Medical and Health Related Loan 10,505 11,804 14,356 7,953 - 7,953
Others 15,530 6,984 22,514 - - -
Total ₱178,145 ₱260,410 ₱269,568 ₱168,987 ₱- ₱168,987
CREATE.WONDERFUL. 7
Schedule 5C - Trade & Other Receivables Eliminated During Consolidation
Outstanding
Beginning Balance
Balance
Creditor Creditor's Relationship Account Type Net Movement
(January 1, 2023) (December 31, 2023)
(In thousands)
Globe Parent Traffic receivable ₱874,383 (₱633,793) ₱240,590
Parent Trade Receivables 1,131 (26,440) (25,309)
Parent Other Receivables 32,319,911 (787,358) 31,532,553
Innove Subsidiary Traffic receivable 362,462 (362,462) -
Subsidiary Trade Receivables 105,910 (10,998) 94,912
Subsidiary Other Receivables 10,092,641 10,039,961 20,132,602
Co-Subsidiary Trade Receivables 74,288 (56,288) 18,000
Co-Subsidiary Other Receivables 304,439 305,624 610,063
Co-Subsidiary Traffic receivable 54 56 110
Asticom Subsidiary Trade Receivables 1,619,386 (662,237) 957,149
Co-Subsidiary Other Receivables 111,947 172,204 284,151
BTI Subsidiary Other Receivables 3,553,247 551,457 4,104,704
Subsidiary Traffic receivable 1,528 996 2,524
Subsidiary Trade Receivables 4,886 (2) 4,884
Co-Subsidiary Trade Receivables 6,273 (225) 6,048
Co-Subsidiary Traffic receivable 168 164 332
Co-Subsidiary Other Receivables 6,819,829 (23,911) 6,795,918
(forward)
CREATE.WONDERFUL. 8
Outstanding
Beginning Balance
Creditor's Relationship to the Reporting Co. Balance
Creditor Account Type Net Movement
(Subsidiary or Parent)
(December 31,
(January 1, 2023)
2023)
GCVH Subsidiary Trade Receivables - 681,869 681,869
Subsidiary Other Receivables 29,932 46,446 76,378
Co-Subsidiary Other Receivables 129,513 (6,636) 122,877
GTI Subsidiary Other Receivables - 98,021 98,021
Co-Subsidiary Trade Receivables 14,985 (14,985) -
Co-Subsidiary Other Receivables 967,064 (446,719) 520,345
TAOD Subsidiary Other Receivables 7,284 - 7,284
Co-Subsidiary Other Receivables 73 - 73
Kickstart Co-Subsidiary Other Receivables 123,155 13,699 136,854
Subsidiary Other Receivables - 10,535 10,535
Yondu Subsidiary Trade Receivables 209,003 74,393 283,396
Co-Subsidiary Other Receivables - 231,191 231,191
EC Pay Subsidiary Trade Receivables 1,558 (1,558) -
Co-Subsidiary Trade Receivables 1,033 (1,033) -
TOTAL ₱58,946,246 ₱8,865,985 ₱67,812,231
CREATE.WONDERFUL. 9
SCHEDULE 5D – LONG TERM DEBT
DECEMBER 31, 2023
Amount shown under

caption "Current portion of
Long-Term Debt" in related
Title of issue and type of Amount authorized by statement of financial Amount shown under caption "Long-Term Debt" in related
obligation indenture position statement of financial position
(In thousands) Amount Interest rates Maturity dates
Term Loans:
Dollar $415,000 ₱4,283,001 ₱13,968,955 5.36% to 8.10% 2024-2027
Peso ₱208,717,000 32,509,955 166,311,785 4% to 7.11% 2024-2034
Retail Bonds
Dollar $600,000 - 32,881,873 3.13% to 3.75% 2030-2035
Peso - - -
₱36,792,956 ₱213,162,613
SCHEDULE 5E – INDEBTEDNESS TO RELATED PARTIES (LONG-TERM LOANS FROM RELATED
COMPANIES
DECEMBER 31, 2023
Name of Related Party Balances at beginning of Balance at end of period

period
SCHEDULE 5F – GUARANTEES OF SECURITIES OF OTHER ISSUERS
DECEMBER 31, 2023
Name of issuing
entity of Amount
securities owned by
guaranteed by Title of issue Total amount person for
the company for of each class of guaranteed which this
which this securities and statement is Nature of
statement is filed guaranteed outstanding filed guarantee
SCHEDULE 5G - CAPITAL STOCK
DECEMBER 31, 2023
Number of Number of
shares issued shares reserved
and outstanding for options,
Number of as shown under warrants, Number of
shares related balance conversion and shares held by Directors, officers
Title of issue authorized sheet caption other rights related parties and employees Others
(In thousands)
Common* 168,934 144,229 10,136 111,739 1,377 31,113
Voting preferred stock 160,000 158,515 - 158,515 - -
Non-voting preferred
- - - -
stock** 40,000 -
*10,119,047 common shares were issued by way of stock rights
**Reacquired as treasury shares

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DocuSign Envelope ID: 66AEA4D2-21C7-47C8-9850-8F578974D2FE

(Company's Full Name)

ROSEMARIE MANIEGO-EALA 7797-2000

Secondary License Type, if Applicable

Dept. Requiring this Doc. Amended Articles Number/Section

Total Amount of Borrowings

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To be accomplished by SEC Personnel concerned

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SECURITIES AND EXCHANGE COMMISSION

SEC FORM 17-C

CURRENT REPORT UNDER SECTION 17

1. February 28, 2024

4. GLOBE TELECOM, INC.

5. PHILIPPINES 6. (SEC Use Only)

10. Securities registered pursuant to Sections 4 and 8 of the SRC

Title of Each Class Number of Shares of Common Stock

Indicate the item numbers reported herein : Please refer to attached

Re: Globe Telecom, Inc. and Subsidiaries FY 2023 Consolidated Financial

GLOBE TELECOM, INC.

Date : 28 February 2024

SECURITIES AND EXCHANGE COMMISSION

Attention: Atty. Oliver O. Leonardo

Atty. Rachel Esther J. Gumtang-Remalante

PHILIPPINE STOCK EXCHANGE, INC.

Attention: Disclosure Department

Ladies and Gentlemen:

Very truly yours,

To the Board of Directors and Shareholders of

Report on the Audits of the Consolidated Financial Statements

What we have audited

The consolidated financial statements of the Group comprise:

Basis for Opinion

Our Audit Approach

Key Audit Matter

Key audit matter identified in our audit is revenue recognition.

How our audit addressed the

Revenue recognition We addressed the matter by understanding the

How our audit addressed the

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Isla Lipana & Co.

To the Board of Directors and Shareholders of

We have audited the consolidated financial statements of Globe Telecom, Inc.

Isla Lipana & Co.

To the Board of Directors and Shareholders of

Isla Lipana & Co.

To the Board of Directors and Shareholders of

Isla Lipana & Co.

GLOBE TELECOM, INC. AND

TOTAL ASSETS ₱611,628,185 ₱555,677,424

LIABILITIES AND EQUITY

TOTAL LIABILITIES AND EQUITY ₱611,628,185 ₱555,677,424

See accompanying Notes to Consolidated Financial Statements.

For the Years Ended December 31

TOTAL COMPREHENSIVE INCOME ₱23,368,437 ₱36,692,797 ₱25,922,217

For the Years Ended December 31

₱23,368,437 ₱36,692,797 ₱25,922,217

Earnings Per Share

Diluted 29 ₱159.74 ₱244.25 ₱172.25