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Tuesday, July 23, 2024

Globe transfers 181 new cell towers worth P2.38b to Frontier

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Globe Telecom said Monday it transferred another 187 cell towers in a deal worth P2.38 billion to Frontier Towers Associates Philippines Inc.

Globe said it had closed 2,492 towers 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.

Globe agreed to sell then leaseback all its 5,709 telecommunications tower and relative passive infrastructure in two deals worth a total of P71 billion in August 2022.

It said of the total, 2,180 towers would be sold to MIDC for P26 billion, while the remaining 3,529 towers would be sold to Frontier Towers.

Globe earlier reported a net income of P6.8 billion from January to March, down by 7 percent from P7.3 billion in the same period last year.

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

Globe’s core net income soared to P5.8 billion in the first quarter, up 13 percent compared to the same period last year.

Consolidated gross service revenues grew P41.1 billion in the first three months, despite the decline in home broadband and non-telco services.

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