Globe has secured P5B from the sale of its towers

Globe Telecom Inc., transitioning from a telecom to a tech provider, has garnered nearly P5 billion from tower sales in the first quarter, boosting its capital reserves for service enhancements and debt repayments.

The sale involved the transfer of towers to MIESCOR Infrastructure Development Corp. (MIDC), Frontier Tower Associates Philippines Inc., PhilTower Consortium Inc., and Unity Digital Infrastructure, netting a total of P4.91 billion. However, this amount falls short of the targeted P39 billion Globe aims to achieve from tower sales in the first half of the year.

Recently, Globe handed over 91 towers to Frontier Towers for P1.16 billion, part of the 2,305 towers transferred out of the 3,529 assets acquired by Frontier Towers. Similarly, 33 towers were transferred to Unity for P396 million, with Unity receiving 282 of the 447 units purchased from Globe.

Previously, Globe gained P1.85 billion from the transfer of 154 towers to MIDC, completing the turnover of 1,348 towers out of the 2,180 acquired by the Manila Electric Co. subsidiary. Additionally, in February, the closure of 100 towers with PhilTower resulted in a P1.5 billion transaction, with 440 assets remaining to be handed over.

Proceeds from the tower sales are earmarked for capital expenditures and debt settlements as Globe aims to restore positive cash flow by 2025. In 2023, it collected 60 percent, or P57.4 billion, of the expected P96.4 billion from tower sales with independent operators. Globe aims to conclude the remaining tower transfers to respective buyers within the first half of 2024.

The company has trimmed its 2024 capital expenditure guidance by 22 percent to P55 billion from P70.6 billion in 2023, striving for cost efficiency to fortify its financial health. Renowned for its connectivity and tech offerings, Globe was recognized as the strongest telco brand in the Philippines in the 2024 edition of Brand Finance’s Telecom 150, achieving a AAA brand strength rating indicative of its competitive advantage, customer loyalty, and talent development prowess.

Business News: Globe has secured P5B from the sale of its towers