Globe’s Tower Sale and Leaseback Deal with Unity Digital Nears Completion

Globe Telecom Inc. is nearing the conclusion of its ₱5.4-billion tower sale and leaseback agreement with Unity Digital Infrastructure, an Aboitiz-backed firm, following another closing round that brought in ₱228 million.

Progress of the Deal

In its latest disclosure, Globe announced the sixth closing of the deal, transferring an additional 19 towers to Unity. To date, the company has turned over 326 of the 447 towers included in the May 2023 agreement.

This transaction is part of a broader divestment strategy, with Globe having sold a total of 7,506 tower assets for ₱96.4 billion across multiple deals with independent tower companies.

Supporting Tower-Sharing Initiatives

The sale aligns with the government’s tower-sharing initiative, designed to improve nationwide connectivity. Tower-sharing allows multiple operators to lease infrastructure from independent tower companies, reducing costs and accelerating expansion without building new facilities.

A 2022 study by Edotco Group and Roland Berger estimated that Philippine telco operators could save up to $1.15 billion in capital and operational expenditures through tower-sharing by 2025.

Funding Expansion and Reducing Debt

Proceeds from the sale are being utilized to fund Globe’s expansion and reduce its debt. The company has set a $1 billion capital expenditure target for 2024, which is expected to drop below $1 billion by 2025.

Between January and September, Globe spent ₱41 billion on infrastructure projects, which included:

• Building 684 new cell sites.
• Upgrading 2,723 existing mobile sites.
• Deploying 378 new 5G sites, expanding 5G coverage to 98.51% in Metro Manila and 94.91% in key cities in the Visayas and Mindanao.

Financial Performance

Globe reported a 6% increase in net income for the first nine months of 2024, reaching ₱20.6 billion. This was driven by a 9% rise in mobile data revenues to ₱72.9 billion, contributing to total revenues of ₱124 billion.

Future Outlook

The deal with Unity Digital Infrastructure is expected to close soon, reinforcing Globe’s efforts to enhance connectivity while maintaining financial stability through strategic divestments and infrastructure improvements.