Globe is set to complete its tower sale and leaseback deal by the end of 2024, with 88% of its portfolio already transferred.
This deal has generated P85.2 billion in proceeds, which will support the company’s financial strategy. Globe aims to finalize the remaining 12% by year’s end
“Even if we only reach about 92% 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,” said Rizza Maniego-Eala, chief finance officer of Globe.
As part of its financial goals, Globe has reduced capital expenditures (capex) by 25% in the first half of 2024. This aligns with its objective to achieve positive cash flow by 2025. Globe’s recent transfers include 48 towers to PhilTower for Php 710 million and 1,037 towers to Frontier Towers for P13.17 billion.
Globe’s free cash flow turned positive in the second quarter of 2024, including proceeds from the tower sale. Maniego-Eala expects this momentum to continue, backed by operating cash flow and cost optimization.
In the first half of 2024, Globe invested P23.8 billion in capex, 34% of its revenue, down from 44% in 2023. The company is on track to hit its capex-to-revenue target of 30-35%, positioning itself for sustainable growth and positive cash flow by 2025.