Globe raises cash from first phase of tower deal

MANILA  -Globe Telecom Inc. gained P1.4 billion from the first phase of its tower deal with Aboitiz-owned Unity Digital Infrastructure two months after signing its fourth sale and lease-back transaction.

In a disclosure on Tuesday, the telco giant said 115 of the 447 towers sold—comprising 94 percent ground-based towers and 6 percent rooftop towers in Luzon—were already transferred to Unity.

The entire transaction is valued at P5.4 billion. In total, the Ayala-led company completed 51 percent of tower deals, raising P49.3 billion. It has turned over 3,826 of the 7,506 tower assets sold.

“Our deal with Unity and corresponding first closing of tower sale today are aligned with our efforts to enhance customer experience and to develop operational agility and efficient calibration of resources,” Globe chief finance officer Rizal Maniego-Eala said.

“Unity’s partnership with Globe is a testament to our commitment in bridging the digital gap in our country and promoting digital inclusion,” Aboitiz InfraCapital president and CEO Cosette Canilao said.

Aboitiz has been ramping up its investments in the digital sector with the tower acquisition, in addition to entry into data center space.

In the first quarter, Globe saw its net income decline by 47 percent to P7.25 billion from P13.65 billion in the previous year due to absence of one-off gains arising from the sale of its stake in data center business.

Total revenues for the period climbed by 3 percent to P45.03 billion from P43.56 billion a year ago.

Globe spent P17.6 billion in capital expenditures for data infrastructure in the first quarter.

—Tyrone Jasper C. Piad INQ