Globe transfers more towers worth P2.38B

GLOBE Telecom Inc. on Monday said it had transferred 187 cell towers to Frontier Towers worth P2.38 billion.

Cumulatively, Globe has closed 2,492 — worth P31.64 billion — out of 3,529 towers to be acquired by Frontier Towers.

"The transaction will result in availability of funds for Globe to support future capital expenditures, debt repayments and debt avoidance, with the expectation to improve the balance sheet health of the company," the company said in a statement.

In August 2022, Globe agreed to sell and then lease back all its 5,709 telecommunications towers and relative passive infrastructure in two deals worth P71 billion.

Of the total, 2,180 towers will be sold to MIDC for P26 billion, while the remaining 3,529 towers will go to Frontier Tower Associates Philippines Inc. for P45 billion.

Globe earlier reported a net income of P6.8 billion in the first quarter, down by 7 percent from P7.3 billion last year.

Excluding the one-time gain from the tower sale, normalized net income would have been at P5.8 billion, a 13 percent increase compared to the previous year.

Core net income was said to have climbed to P5.8 billion, up 13 percent compared to the same period last year.

The company's consolidated gross service revenues grew by P41.1 billion, despite the decline in home broadband and non-telco services.

On Monday, Globe's share price fell by P12 to P2,088 apiece.