Globe Telecom Inc. said on Monday it has exceeded its tower sale targets with gross proceeds reaching close to P100 billion.
Rizza Maniego-Eala, the company’s CFO, said Globe’s tower sale transactions — signed with various tower companies—reached P96.32 billion, representing the sale of 7,509 towers.
Initially, Globe wanted to sell only 7,000 of its tower assets. Its recent transaction with Unity Digital Infrastructure Inc., which involved the sale of 447 towers, enabled Globe to exceed its target.
“At the moment I think we have upped our tower sale. We will see if there are any more opportunistic transactions for the balance year but the fact that we’re at 7,509 is already over our target,” she said.
To date, Globe has successfully transferred 44 percent or 3,120 assets out of the 7,059 acquired by tower companies, yielding approximately P40.5 billion.
Proceeds of the divestment program will be used to bankroll Globe’s capital investments. It will likewise help in freeing up cash flow for the telco.
Upon receipt of all tower sale proceeds, Globe expects its gross debt to earnings before interest, tax, depreciation, and amortization (Ebitda) ratio to be around 2.2x, aligning with pre-pandemic levels.
Aside from Unity, Globe has also signed deals with Phil-Tower Consortium Inc., Miescor Infrastructure Development Corp. (MIDC), and Frontier Tower Associates Philippines.
Eala said Globe plans to “keep its strategically important towers for its operations.”
By focusing on these towers, she said the company aims to enhance its operational efficiency and ensure reliable services for its customers, strengthening its overall performance.
Globe expects its core business to post “mid-single digit” growth this year, “despite the major macroeconomic headwinds” that it forecasts in 2023.
In the first quarter, Globe saw its net income decline by 47 percent to P7.3 billion from P13.7 billion, largely because of the one-time gain it posted the year prior from the sale of its data center.