Globe gets P5 billion from sale of towers

MANILA, Philippines — Telco-to-tech provider Globe Telecom Inc. raised almost P5 billion from the sale of towers in the first quarter, providing it with some of the capital needed to upgrade services and pay debts.

Globe said it generated a total of P4.91 billion from the transfer of towers to MIESCOR Infrastructure Development Corp. (MIDC), Frontier Tower Associates Philippines Inc., PhilTower Consortium Inc. and Unity Digital Infrastructure.

However, the amount remains far from the balance of P39 billion that Globe aims to collect from the tower buyers within the first half of the year.

Recently, Globe handed over a batch of 91 towers to Frontier Towers for P1.16 billion. The telco has so far turned over 2,305 of the 3,529 assets acquired by Frontier Towers.

Likewise, Globe has transferred 33 towers to Unity for P396 million. To date, Unity has received 282 of the 447 units that it bought from Globe.

Prior to this, Globe gained P1.85 billion from the transfer of 154 towers to MIDC, completing the turnover of 1,348 of the 2,180 towers purchased by the unit of Pangilinan-led Manila Electric Co.

In February, the telco also raked in P1.5 billion from the closing of another set of 100 towers with PhilTower, leaving it with 440 assets to hand over to PhilTower.

Globe said it plans to use the proceeds from its tower sale to finance capital expenditures and settle maturing debts, as it works on returning to a positive cash flow by 2025.

The telco ended 2023 collecting 60 percent, or P57.4 billion, of the P96.4 billion that it expects to raise from the tower sale it signed with independent operators. In line with this, Globe seeks to transfer the remaining towers to their respective buyers within the first semester.

For 2024, Globe has slashed its capex guidance by 22 percent to P55 billion, from P70.6 billion in 2023. The telco, popular for its connectivity and tech products, wants to achieve a certain level of cost efficiency to build up the health of its finances moving forward.

Meanwhile, Globe was named the strongest telco brand in the Philippines in the 2024 edition of Brand Finance’s Telecom 150.

The telco also secured a brand strength rating of AAA, meaning it has the capacity to outperform industry peers in terms of competitive advantage, customer loyalty and talent development.