Good morning and welcome to the Virtual Second Quarter 2022 Analyst Briefing of Globe Telecom. We'll begin the presentation with Mr. Ernest Cu, our President and Chief Executive Officer. With that, we hand over the virtual floor to Mr. Cu.
Thank you, Jose Mari, and welcome to everyone this morning. You know, I'm pleased to report that our mobile segment sustained its growth with second quarter revenue hitting PHP 27 billion. This is our fourth highest quarterly revenue to date, back to pre-pandemic levels. Year-on-year, first half mobile revenue is at PHP 54 billion, a 3% improvement versus last year, entirely driven by growth in the mobile data service segment, which is at an all-time high. The 8% mobile data growth fully offset the continuing decline in mobile voice and SMS. On a brand basis, performance was driven by prepaid, especially GOMO, which utilizes data as a currency and is geared towards those who mainly use mobile data and would like to forgo traditional voice and SMS services.
As evidenced by growing mobile data traffic of over 2 petabytes or 2 exabytes for the first half, mobile data has benefited from increased mobility and reopening of the economy. Mobile data ARPU likewise continues to grow and is now at 9.7 gigabytes per month, up 20% year-on-year and 8% quarter-on-quarter. Moving into the H2 of the year, we are aware of the inflationary pressures the country is facing, but our focus has always been to provide our customers with relevant products and services that will provide the best value. The home broadband segment, on the other hand, continues to see a decline driven by the ongoing normalization of the fixed wireless segment. We expect we will stabilize this by year-end. However, despite the overall 26% decline in subscribers, home broadband revenue only declined by 5%.
It was bolstered by the improving performance of our fixed wire segment, whose subscribers grew 28% and 29% respectively. Fiber, in particular, continues to improve with subscribers and revenue more than double that of last year's. As of end of June, we have already rolled out over 1 million FTTH lines, improving our inventory and allowing us to compete better in the market. With that being said, while we believe that the home broadband market is still underserved, we also believe that the postpaid market is already nearing its saturation point. There is a segment of the market that is predominantly prepaid, that are now in need of better speeds and more reliable connection that only fiber can provide. As such, as a first in the market, Globe is launching prepaid fiber to cater to the growing segment of digital Filipinos.
We're introducing TMBayan Fiber WiFi as the first product for thriving Filipinos, enabling them to hang out, play games, generate TikTok videos, surf social media or more and more, all the while in the company of friends in the neighborhood. It's initially available in select areas nationwide. We believe this effort allows us to more efficiently utilize our existing capacities and increase the opportunities in this segment. This is given that the country has been predominantly and will always be a prepaid market. Aside from mobile data, we are seeing great traction in corporate data services, which grew 21% year-on-year to PHP 8 billion and 8% quarter-on-quarter to PHP 4 billion, a new record high for the quarter. Core accounts continue to recover, growing 4% year-on-year, driven by international lease circuits and Internet port services.
As more businesses are now adopting digitalization and hybrid setups, digital solutions remain more relevant than ever. ICT sustained its performance, improving by 86% year-on-year, led by business application solutions, data center services, cloud solutions, and cybersecurity. This ends my portion of our telco revenues, and I turn over to Joel.
Okay. Thank you, Ernest. To provide updates on our ongoing network rollout, as of the H1 of the year, Globe was able to build 572 new cell sites, upgraded over 6,000 mobile sites, and installed over 900 5G sites. CapEx spend for the period is close to $1 billion, representing 56% of full year guidance of $1.7 billion. Data related requirements continue to take up majority of the spend at 84%. Bolstered by our sustained network improvements, Globe achieved a consistency score of 79.4 in Q4, making us once again the most consistent network for the second quarter of 2022, according to Ookla data. In addition, with a score of 93.11, Globe is leading in availability score, which identifies the network whose users spend the highest percent of their time on all technology.
These metrics earned Globe the recognition of being the Philippines' most reliable mobile network, an elusive claim that only a few mobile app operators in the world have managed to obtain.
These metrics continue to speak to the intensive investment that we've made to improve customer experience on our network. Customers can rest assured that being on the Globe network would provide them with a consistent level of quality that is suited to their needs. That concludes my portion, and I now turn you over to Martha, who will provide updates on Mynt.
Thank you, Joel, and good morning everyone. Moving on to Fintech, GCash continues its growth momentum and journey towards financial inclusion. In the first half of 2022, 66 million Filipinos have now placed their trust on GCash. That's around four out of five adult Filipinos having a GCash account. We've seen higher user engagement now that things have started to normalize, further proof that we have become embedded in the everyday lives of Filipinos. With this, for the H1 of the year, we have already breached the PHP 3 trillion mark in GTV, almost matching our full year GTV reported a year ago. We've doubled down on our merchant acquisition efforts and partnerships, resulting in merchant and social seller base of more than 5 million. That's 1.9x larger than the same quarter last year, making GCash the largest digital ecosystem in the Philippines.
We've expanded our cash in and cash out outlets to 339,000, 5.7x higher year-on-year, still offering the most touch points for our users. Our mini program, GLife, now have 520 GLife merchants expanding into new categories like content, health, insurance, and e-government. With all this, GCash continues to be the number one finance app in the country. The GCash active user base is now at almost equal to Lazada and is 5x larger than the next e-wallet based on data from reputable third-party platform data.ai. We continue our work on making financial services accessible, affordable, and easy to understand, disrupting traditional banking offerings. For savings, one in five banked Filipinos in the country have a GSave account. As of Q2, we already have more than 3.3 million GSave accounts.
For lending, we've disbursed more than PHP 40 billion worth of loans live to date with our continued expansion into more relevant lending products like GLoan and GGives. Together with GCredit, we now have a total of 1 million active borrowers as of end of Q2. GInsure now has more than 24 product offerings from health to online shopping to vehicles and to pets as we partnered with more than 10 reputable names in the industry and selling more than 2 million policies to date. For our investment marketplace, GInvest, we now have seven local and global funds. Now around one out of five mutual fund investors are on GInvest platform. As of first half 2022, we have 4.4 million registered investors on our platform.
Whether in savings, investing, insurance, and lending, we partner with and are trusted by the most innovative and biggest market players as we continue to pursue financial inclusion. The good performance has been driven by continuous innovation. The services which have disrupted the payment space have further undergone innovations. On Pay Bills, we've embedded protection, changing the way people buy insurance. Pay QR just got better with the introduction of GGives, which offers users seamless way to amortize their payments. Lastly, with GCash Pera Outlet, we have also successfully transformed sari-sari stores into digital community hubs. We don't just innovate for everyday consumers. We've created new and exciting services for our merchant partners as well. With AdTech, we have disrupted the way our business partners do promotions. We've optimized our ad spaces for better ad visibility and engagement.
Our digital vouchering service reinvents the old check under the cap or scratch card promos and is now being enjoyed by the top FMCGs in the country. GCash Connect is the next big step of our B2B solutions. We provide first-in-industry game-changing identity solutions. The possibilities are endless with GCash Connect, where we can boost what a GCash digital profile can do. To further our vision towards financial inclusion, we are focusing on hyperlocalization via channel expansion and more localized marketing, such as using local dialects as we expand into the regions. Through these efforts and partnerships with LGUs, we have made financial services available to tricycle drivers and wet market vendors. We've also given sari-sari store owners access to these services as well as additional livelihood opportunities, taking steps towards our vision of finance for all. Lastly, we're happy to announce that last Monday we just launched GCash Jr.
Now kids and teens aged 17 and below can get access to a safe and fun GCash interface with services and deals designed specifically for the youth. For the purpose of KYC, all they need to present is their student ID, birth certificate, and of course, a selfie from a GCash verified parent. In the next coming months, more features will be made available in GCash Junior like GSave Junior and other financial services for the youth that will further aid them in their financial journey. That ends my presentation. I'd now like to turn it over to Cholo for his portion.
Thank you, Martha. Good morning, everyone. We're excited to announce the consolidation of KonsultaMD with HealthNow and AIDE. This consolidation creates the largest health play, health tech play in the Philippines. Here and now, KonsultaMD dominates the share of voice, being the most visible brand in the market. It's available in over 50,000 outlets nationwide and is leading on social media with over 53 million views on TikTok. KonsultaMD is promoted by over 600 KOLs and celebrities. KonsultaMD owns the mental health space in the Philippines, launching the very first mental health concert last October 2021. HealthNow and AIDE are associated with medicine delivery and home care, but their strengths are rooted in the proprietary technology and relationships with almost 3,000 healthcare providers across 48 specializations across the country.
What each company brings to the table is complementary in terms of services, capabilities, and talent, which will allow us to accelerate our position in the market as the biggest health tech player in the Philippines. With the consolidation, we're excited to provide a more complete and seamless digital experience to everyone. This will be clearly seen with the super app that we're targeting to launch in quarter one, 2023. This concludes my portion of the presentation, and I now turn you over to Carlo to discuss Globe's recent transactions.
Thank you, Cholo. As mentioned, as you see in our press release, Globe intends to sell over 7,000 towers in what potentially will be the largest tower sale and leaseback transaction in the country to date. The 7,000 towers are composed of 79% ground-based towers and 21% rooftop towers, and are spread across the country, with 66% of the towers being sold in Luzon, 19% in Visayas and the balance in Mindanao. These tower assets have been grouped into three unique, distinct portfolios, which each being assigned to a specific tower company. Proceeds will be used to fund further capital expenditures, as well as the debt servicing requirements of the company through 2023.
As we've always said in the past, we have always supported the government's initiative with regards to their tower sharing policy. We have also expressed our intent to monetize our passive infrastructure, and this transaction allows us to do both. The transaction also enables us to be more efficient in terms of raising capital while also redeploying the capital from passive assets into active equipment. Additionally, this will strengthen our balance sheet and provide added flexibility as we seek to expand the digital ecosystem further. The chosen tower companies will also provide needed local and international experience and expertise on this front, in terms of telco infrastructure, engineering, construction, in order to further our operational efficiencies.
With this, we also affirm Globe's commitment to UN SDG 9, which highlights the role of infrastructure and innovation as crucial drivers of economic growth and development, while also supporting Globe's mission to deliver first world network, #1stWorldNetwork to Filipinos. As a first milestone and a major milestone yesterday, Globe and MIDC signed the tower sale and leaseback agreement for the first portfolio, consisting of 2,180 towers in Luzon, with total proceeds of over PHP 26 billion. MIDC is a joint venture between MIESCOR, Meralco subsidiary with deep experience in engineering, construction, and facilities maintenance, and Global Infrastructure Fund Stonepeak. The towers are to be leased back to Globe at a monthly lease rate of PHP 100,000 per month, with an initial lease term of 15 years.
The target first closing for this portfolio will occur sometime in September 2022, and with Globe expecting a pre-tax gain of over PHP 10 billion to be reported and recognized, according to the timing of the transaction, subsequent transaction closings. Additionally, Globe and Frontier Tower Associates Philippines signed the tower sale and leaseback agreement as well yesterday for the second portfolio, consisting of 3,529 towers nationwide, with total proceeds of PHP 45 billion. FTAP, as they're more properly known in the industry, is owned by Pinnacle Towers, which is backed by global investment firm KKR.
The target first closing of this portfolio will occur in late third quarter or early fourth quarter this year, with Globe expecting pre-tax gain of over PHP 15 billion to be reported and recognized according to the timing of the subsequent closings. Additionally, as we mentioned, we do have one more portfolio, and Globe is in advanced discussions with another third-party tower company, for the sale and leaseback of that portfolio, which consists of roughly 1,350 towers in Visayas and Mindanao. The signing of that portfolio and transactions will occur at the tail end of the third quarter or early fourth quarter, with the target first close as well, in the fourth quarter.
Lastly, before we move on to our financials, as an update to the stock rights offer that we announced in June, the process for the offer is ongoing, and we continue to assess market conditions and work on getting necessary regulatory approvals. To summarize, Globe expects to raise around PHP 32 billion up to PHP 32 billion pesos through the rights offer, with the shares on offer to be issued out of the increase in the company's authorized stock, which was approved by the Globe board and shareholders on April 2022.
The increase in capital stock, the SRO and the subsequent listing of the shares on the Philippine Stock Exchange are subject to the relevant approvals. This concludes my portion, and I now turn you over to Riza to discuss the company's financial highlights in more detail.
Thank you, Carlo, and good morning to everyone on the call. To summarize the earlier points, gross service revenue for the first half came in at a record high of PHP 79 billion, 4% higher year-on-year. Coupled with the operating expenses which remained flat year-on-year, EBITDA improved by 8% to PHP 41 billion or 51% of service revenues. Reported net income stood close to PHP 20 billion for the period, driven by the one-time gain related to the partial sale of our DC assets last March. Stripping out this one-time gain, normalized net income still improved by 4% year-on-year and 17% quarter-on-quarter. Normalized core net income also improved by 1% year-on-year and 16% quarter-on-quarter.
Looking at our costs on my next slide, total marketing and subsidy costs declined by PHP 1.3 billion, fully offsetting the slight increase in our other OpEx items. Staff costs for the first half grew by PHP 400 million or 5% year-on-year. Network cost is up PHP 47 million versus last year from increase in utilities, repairs and maintenance charges, and administrative expenses. This was offset by a decline in lease expenses due to the short-term lease contracts that were reassessed and reclassified as capitalized leases. Provisions grew by PHP 480 million or 20% from higher trade provisions, while service and other expenses grew PHP 180 million or 2% from higher merchant discounts and bank charges, countered by lower cloud advisory fees and other contracted services. Onto the balance sheet.
This remains healthy, especially after the transaction that Carlo just mentioned. As of the first half, on the back of sound capital management and improving EBITDA, our gross debt level is currently at PHP 240 billion, while unrestricted cash level is at PHP 12 billion. In terms of our ratios, gross debt to equity and gross debt to EBITDA are at 1.9x and 2.6x, respectively. Debt service coverage ratio is at 4.1x, a slight decline versus end 2021, but still well within the minimal capital requirement and/or our credit ratios. We expect our recent capital raising efforts to aid in maintaining the health of our balance sheet, while also providing the company more flexibility.
On this last slide of mine, I would like to reiterate our guidance for the year with revenue at mid-single digit growth. For our EBITDA margin, it will be still at 50%, so our guidance will not change. In terms of CapEx, guidance is still at $1.7 billion. We note that the peso figure may increase due to the volatility of the FX rate. Whether or not the peso figure exceeds guidance, we believe that the full year 2022 will represent peak CapEx for the company.
We are not prepared to give further guidance beyond 2022 CapEx, but reiterating that from our perspective, this will be peak spending after we had actually maximized the opportunities around ramping builds with despite the pandemic, with easing of permitting and the fact that we've been able to scale all our vendors to actually speed up the builds over the past two years. This ends my portion of the presentation. Before we open the floor for questions, I'd like to give the stage back to our CEO, Ernest.
Yeah. Thank you. Thank you, Riza. Just to summarize the results that we just reported to you. Just like to highlight that these results were done amidst a very challenging economic landscape of the country. Issues of inflation, issues of food security, and mobility continue to be around us now, and COVID is still in the environment. The revenues that we presented to you, they are an all-time high for the quarter. The growth, as you know, was driven by sustained improvement in our mobile and corporate data services and is now supplemented by non-telco services, which I will speak about a little bit later.
The EBITDA is also a record high, you know, PHP 21 billion for the second quarter and PHP 41 billion for the first half of 2022, maintaining EBITDA margins at 51%. The net income first half is, you know, close to PHP 20 billion, as Riza mentioned, a lot of it due to the one-time gain of our DC assets, data center assets, which by the way, if you recall, is with ST Telemedia Global Data Centres and plans for those will be released to the public shortly. Given these results, our board of directors has approved a third quarterly cash dividend of PHP 27 per share.
You know, we would also like to update the market with some of Globe's recent activities and that I think Cholo spoke about this, which is KonsultaMD, HealthNow, and AIDE have announced that they're coming together to bring about the leading player in health tech in the Philippines, you know. Carlo spoke about the sale of 7,000 of our towers in the largest ever sale leaseback transaction in the Philippines and with more to come, hopefully, by the time we speak to you in the third quarter about third quarter results. You know, Carlo also spoke about the SRO, where Globe expects to raise up to PHP 32 billion and again, we will issue further details about this as we go along.
Now I'd like to discuss also the strategic shift to go beyond telco and how it's benefited the overall Globe Group. Non-telco revenues have now grown 118% year-on-year to almost PHP 2 billion and now contributes 2.4% of our gross service revenue. This is driven by growth across all our subsidiaries on the revenue side with ECPay and Asticom contributing the most, followed by AdSpark and Yondu. Our joint ventures and affiliates are likewise contributing to our bottom line, with our net share in equity earnings growing by 17% to PHP 0.9 billion and contributing 3.8% of our income before tax.
Our share in Mynt in particular continues to improve as GCash remains and is strengthening its position as the number one finance app in the country. While some subsidiaries and affiliates are already visibly contributing to the group's performance, it doesn't end there. Fueled by our vision of seeing a Philippines that is admired, we are constantly looking for new ways to enrich and empower the lives of the Filipinos through digitalization. This could be through business solutions like loyalty and e-commerce platforms like Rush, data-driven products and solutions provider like Inquiro or Kickstart's recent investment in all-in-one restaurant management system, Mosaic Solutions. It could also be through EdTech, like online tutorial platform EdVenture or IT tech bootcamp KodeGo. Whether through fintech, agtech, healthtech, e-commerce or entertainment, we strive to bring value to the overall ecosystem.
I now turn you over to Jose Mari. I think we're now gonna start our Q&A portion.
Thank you, Ernest. Before we begin with the Q&A session, we'd like to introduce the full management panel for this morning's briefing. First, we have Mr. Ernest Cu, our President, Chief Executive Officer. Miss Riza Maniego-Yala, Chief Financial Officer. Isa Guevara-Cabrera, our Chief Commercial Officer. Attorney Froilan Castelo, General Counsel. Mr. Joel Agustin, Head of Network Planning and Engineering. Sir Darius Delgado, Vice President of Consumer Mobile Business. Miss Martha Sazon, President and CEO of Mynt. Mr. Cholo Tagaysay, CEO of KonsultaMD. And of course, Mr. Juan Carlo Puno, Vice President of Financial Planning Analysis. We now begin the question and answer session. Our first set of questions come from Husseini of UBS, and I think this is for Carlo. The question reads, what is the leaseback rate of the towers, and are there any escalator clauses built in?
Thanks, Joms. The lease rates are actually posted in, I believe, slide 20 and 21. The escalation rates are at 3%, consistent with precedent.
Okay. Thank you. There's also a follow-up question on towers again, Carlo. With the tower sales proceeds, what would be the company's net debt to EBITDA position?
The proceeds of the towers, as I've mentioned, would come in tranches depending on when subsequent closings happen. The full impact of the proceeds will be felt on the final close. Our expectation is that net debt to EBITDA after all proceeds have come in will be around the 2x level, which is in line with industry.
Thank you for that. The next question I believe is for Darius. The question is, mobile revenues were up 1% Q-on-Q versus 3% for your competitor. Why a slower mobile-linked rebound for Globe in this case?
Good morning, and thanks for that question. While we seemingly grew slower than competition in Q2, it's mainly because we had a great run or momentum starting in Q1, surpassing even our seasonally high numbers in Q4 of 2021. Moreover, we even posted higher than Q1 performance in Q2 on the back of all of our brands firing at all cylinders across channels versus Smart and PLDT's Q1 and Q2 numbers, which are even lower than their Q4 performance last year, as you would note. Lastly, we believe that mobile is basically a momentum game where our momentum started earlier than that of competition, such that by Q2, as also mentioned by Ernest, we are already at pre-pandemic revenue levels.
Thank you, Darius. The next question comes from Gilbert Lopez of Macquarie. I think this question is for Issa. What accounted for the unprecedented yearly and sequential drop in fixed wireless broadband that was not close to being made up for the yearly and sequential growth in wired broadband?
Thank you, Jose Mari, and thank you, Gilbert, for that question. As you may remember, in the beginning of the pandemic, our home prepaid Wi-Fi or our wireless broadband business actually had a massive uptick, as during the early days of the pandemic, customers bought it and needed it as their immediate connectivity. Also at the same time, at some point using it as well as an interim connection as the fiber rollout was happening and as people were starting to subscribe to fiber, as they learned that the pandemic was actually going to be for a much longer period than expected. Now that we are back to the new normal, what we are actually seeing is that, you know, the people have already acquired their fiber and they have chosen actually a far more stable connectivity vis-à-vis a wireless solution.
With the normalization, mobility is coming back. What we're seeing is, you know, the business will now start really normalizing more towards the fiber and at the same time towards the mobile business. Clearly, with the results that has been shared specific to our fiber business, we are seeing a massive growth. In fact, we are one of the leading growth drivers in the fiber side of the broadband business. Clearly it's just Globe pivoting to what the customer wants and always being ready to answer their needs.
Okay. Thank you for that, Issa. The next set of questions come from Arthur Pineda of Citi. The first question I believe is for Carlo regarding towers again. Can we get clarity on the terms and impact of the tower sale? What are the leaseback terms and pricing, and what were the costs and depreciation linked to these towers?
Thanks, Arthur. Thanks, Joms. I think the leaseback terms and pricing are in my portion of the presentation. For the more granular details, I think we can connect with him offline. Thank you, Jom.
Okay. Thanks for that, Carlo. The follow-up question is also on towers. What is the motivation for selling the towers as the lease liabilities potentially match or exceed the cash to be raised? Does this move actually serve to improve the balance sheet gearing?
Yeah. I believe we've mentioned in the presentation that asset monetization is actually a key lever for our capital raising. At these prices, I think at the purchase price that we got, as well as the lease terms, the effective cost of this transaction is actually much more favorable than a similar instrument. It does improve our gearing ratios. As I mentioned in the previous question, the expectation is that our net debt to EBITDA will actually bring us closer to industry levels once we receive all of the proceeds.
Okay. Thanks, Carlo. The next set of questions again from Husseini of UBS. I believe this is for Darius. How would you characterize the mobile competition in the market? Active but rational or elevated? What is the bigger risk to growth, third competitor or macro factors?
Again, thanks for that question, Husseini. Just for overall context in terms of competitive intensity, we see competition further drive pricing. Smart for one, while continuing to own Unli, has moved to the high GB open access space versus content specific GBs like they used before. TNT hikes value affordability with recent comms centered on low denom 10 peso offers. While DITO, on the other hand, has likewise moved to lower price short validity data offers after they kept within high denom and long validity plans for a long time with the intent to monetize their investments. During this period, however, we did not do any price adjustments as we wanted to deliver better services to our customers, going beyond just connectivity offers, which we think are plain vanilla now. We do all this with the consciousness of protecting total mobile industry value as well.
I think for the most part then, the mobile market is relatively in between rational and price competitive or intensive. Net, net, I would say it's slightly elevated because of such competitive moves. That said, however, most of our performance is actually impacted by macroeconomic factors such as inflation more than competition. Our mobile brands remain strong in the market, and we're here for the long haul.
Indeed. Thank you, Darius. Next question is regarding broadband, and I believe this is for Issa. When should we expect to see growth normalization in fixed broadband segment of Globe? Globe is losing a bigger portion of home prepaid Wi-Fi subscribers than adding fiber subs.
Thanks, Jose Mari. As mentioned earlier, our fiber subscriber base and revenue have actually grown 2x year-on-year. While the broadband market continues to be underserved today, a large segment of the customers that is predominantly prepaid are actually looking for better speeds and more reliable connection, but perhaps not on a postpaid basis. As such, and as mentioned by Ernest in the presentation, we have launched a first in the market, prepaid fiber to cater to the growing segment of the digital Filipinos.
Thanks, Isa. The next question is, I believe this is for Riza. The question reads: Costs were exceptionally stable, despite inflationary concerns. Were there any exceptional bookings in the second quarter leading to a slower cost increase?
No, there were no exceptional OpEx bookings in the second quarter. What has been helping keep our costs at bay is our continued rationalization efforts this year, particularly on our IT platforms and some of our renegotiated managed services costs.
Thank you for that, Riza. The next set of questions come from Gio Dela Rosa of Regis. The first question pertains to towers, and I believe this is again for Carlo. The question is: How will the announced tower sale and lease back deals affect continuing earnings and EBITDA?
Gio, if you recall, we actually implemented IFRS 16 already in the past, and therefore, we've already moved a lot of the land leases from OpEx down to below EBITDA. The only movement would really be some network costs that will fall off because those will be handled by the tower costs. These are counteracted by the booking of O&M costs or the O&M portion of the lease rate, which is the escalating portion of the lease rate. In terms of the impact to the bottom line, it will be highly dependent on the co-location that these towers actually get because there is a fairly sizable step-down in the lease rates when these towers actually become multi-tenant.
Thanks, Carlo. The second question from Gio again, I guess is for you to answer. Should we expect the tower sale to affect rather the plans for the rights issue?
Well, I think I touched on this as well. We are continuing our efforts in terms of getting regulatory approvals as well as market assessments in terms of its conditions. We will update the market if and when there are any developments on this front. For now, we are continuing that effort.
Okay. Thanks, Carlo. There is a follow-up question from Arthur Pineda of Citi. I think this is for Issa. The question is: When can we see a significant acceleration in fixed broadband momentum? It appears that the subscriber take-up remains tempered even with nearly 1 billion ports built in the first half.
I'd encourage all of you actually to look at all the disclosures of the companies. If you look at the subscriber acquisitions, at the same time, our fiber revenues, you'll see that the growth is there. It's 2x year-on-year, unprecedented for us on the fiber side of the business. You can compare it to our competitors as well on a pace basis. We are very confident that our efforts on fiber is actually allowing us to be very, very efficient, not only in utilizing our existing capacities, but at the same time in ensuring that we actually serve the underserved in the broadband space. Clearly, still massive opportunities in connecting the Filipinos via a, you know, stable fiber connection. Clearly Globe will be at it and very exciting times still ahead.
Because this time, we are coming into the market with what is needed, which is a prepaid solution, to a highly stable fiber product.
Thank you, Issa. The next question comes from Rachel Rodriguez of Maybank, and I believe this is for you as well. How much do prepaid fiber clients need to shell out for the modem and connection to their homes?
Customers, be it Globe or non-Globe customers, only need to purchase a promo. No need to buy a modem, mind you. Clearly that barrier to entry to many of our Filipinos who are in the DE market will not have to shell out that massive initial investment for a modem. They just need to connect to the TMBayan Fiber WiFi portal to access connectivity at any nearby hub, be it a sari-sari store or in select convergence areas. Go to your Wi-Fi device setting, look for TM Tambayan WiFi, input your mobile number. You don't have to be a Globe customer. Verify the access using the OTP received via SMS. Off you go. For as low as PHP 5 for a minimum of one hour internet access, unlimited within that one hour.
For PHP 20, you can enjoy 12 hours of high speed fiber connection as well. Clearly a very inclusive offer, and once again, a first from Globe.
Thank you, Issa. A first indeed. The next question is, I believe, for Riza. Rachel's asking: May I ask what drove the higher other income? Are these from Globe's non-telco businesses?
Well, if we look at Note 14 on our disclosed financial statements, the PHP 400 million increase is due to our insurance claims related to Typhoon Odette.
Okay. Thank you, Riza. The next set of questions come from Carlos Bacu DeLeon of Paul Financial. The first question is for Carlo again. Is there any plan to provide special dividends using the proceeds from the tower sale?
Thanks, Carlos. Use of proceeds for the tower sale, I think we disclosed will be approximately spent 75% on CapEx and 25% on 2023 debt maturities. Dividend discussions are discussed quarterly as we continue to stay. Any relevant changes will be decided by our board.
Thank you, Carlo. The next question from Carlos I believe pertains to broadband, and I believe we'll just take this offline since the answer involves several components to it. It'll take too much time for the Q&A we're in. We have a hard stop at 11:25 A.M. actually. Apologies for that. Actually it's already 11:25 A.M. Again, we appreciate the questions sent by the analysts to the investor relations team at globe.com.ph email. We'll just get back to you via email to answer the remaining questions. At this point, again, we would like to call Ernest for his final remarks.
Thanks, Jose Mari. I just wanna close out by thanking everyone for attending today's briefing. As I mentioned in my summary, things are looking up, looking good, for Globe. We do have our challenges again in our fixed wireless product. You know, as we, you know, slow down the subscribers in that particular segment, the decline is going to slow down already. We will bottom out, but what's good is that you see us doing very well in the fiber segment and gaining market share, gaining a lot of subscribers and now have a substantial revenue base coming from fiber. The headline of that business is really that the post-paid segment is continuing to be mature. I think you've seen.
You're starting to see that already in the results of the other fiber players in the market that acquisition is proving to be challenging. Credits are beginning to be suspect in terms of quality. You know, it's time now to serve the market with a product that really serves majority of our population, which is the prepaid segment. Globe is going to be continuing to develop this. I think you'll hear more from us as well about the tower sale, which has drawn a lot of attention and interest from the analyst community. I offer up the IR team to you guys to get more details about the sale, but to the extent that we can disclose particulars.
We're also very thankful to the bidders, who came out and did this very quick process. You know, some processes will take close to a year or two even in terms of selling, and we were able to do it in three or four months. Again, kudos to the team led by Riza and Carlo, who handled all of this. I guess we'll see you guys again in the next quarter, and hopefully more news from us. Again, we'll showcase one more of our new businesses to you guys at that time. Thank you.
Thank you again, Ernest. On that note, we conclude the virtual second quarter 2022 analyst briefing of Globe Telecom. We should thank you again for all of you who joined the call. We hope you'll join us again for our third quarter analyst briefing in early November 2022. Again, we wish everyone a pleasant Globe morning. Stay safe, everyone.
Thank you, everyone.
Thank you.
Thank you.
Thank you.