Globe Telecom Inc. expects to complete by yearend the remaining 12 percent sale and leaseback deal amounting to over P5 billion by yearend.
As of July, Globe said it has generated P85.2 billion in gross proceeds after the turnover to tower companies of 88 percent of its towers in the portfolio.
Rizza Maniego-Eala, Globe chief finance officer, is confident about the timeline for the completion of the sale.
“We are aiming to complete 100 percent of our tower sale by this year. However, even if we only reach about 92 percent by December, we will still be on track, considering that the fourth tranche of our tower sale came six months after the first three transactions,” Maniego-Eala said in a statement.
The tower sale, which started in 2022, has seen significant progress throughout 2024, Globe said. This is expected to generate P91 billion in proceeds from the sale of 7,506 towers, which is considered as the biggest tower sale in the country.
Globe said the significant financial inflow will support its strategic initiatives and further strengthen its financial position.
As part of its strategy to optimize capital deployment, Globe has reduced its capital expenditure (capex) investment six months into the year by 25 percent, aligned with its goal to achieve positive cash flow by 2025.
With the tower sale almost complete, the company said its financial outlook remains optimistic.
“Our free cash flow after interest payments for the second quarter of 2024 already entered positive territory, which included proceeds from our tower sale initiative,” said Maniego-Eala.
“We expect the momentum coming from strong operating cash flows to continue through to next year, driven by both top-line growth and our efforts on cost and investment optimization. This positions us to continue posting free cash flow positive results in 2025, even without one-offs,” she added
