MANILA, Philippines — Globe Telecom Inc. booked P1.3 billion more after handing over additional towers to Phil-Tower Consortium Inc. (PhilTower) as part of an earlier deal, allowing the telecommunications giant to supplement capital for its expansion plans.
In a stock exchange filing on Wednesday, the Ayala-led company said it had turned over 90 more towers to PhilTower. To date, Globe has surrendered over 1,000 out of the 1,350 telecommunication assets it earlier sold to the independent tower firm.
The two companies in September 2022 signed a P20-billion sale and leaseback deal that would allow Globe to improve its balance sheet while improving its services.
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The deal was in line with the government’s common tower policy supporting colocation services. This means that independent tower companies will develop or operate these assets, which would then be shared by telecommunications players to expand wireless network coverage in the country.
The first batch consisting of 578 towers was turned over to PhilTower in February 2023 for a total of P5.8 billion.
Coming from a high base in 2022 due to a one-time gain, Globe saw its net income last year decline by 29 percent to P24.58 billion amid higher expenses.
READ: Globe income tumbles 29% despite record-high revenue
It plans to earmark for this year $1 billion in capital expenditures, which will be funded through internal cash flow and proceeds from tower sales, among others.
As of end-2023, Globe said it had cashed in P57.4 billion from its various tower deals with partners, apart from PhilTower.