Sunday, July 14, 2024

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PLDT completes P2.8-B sale of 230 telecom towers to Frontier 


PLDT Inc. stated on Friday that the transaction for the sale of 230 telecommunication towers to Frontier Tower Associates Philippines, Inc. for P2.8 billion has been finalized.

This is part of the 1,012 towers PLDT sold to Frontier through a P12.1 billion sale-and-leaseback deal announced in March.

PLDT stated in a disclosure to the stock exchange that the Master Services Agreement for the leaseback arrangement of the towers has also taken effect as of today.

PLDT anticipates that the remaining transfers will be completed within the next few months, pending the fulfillment of closing conditions.

The 1,012 towers involved in the agreement are part of the 7,569 that PLDT has been monetizing through sale-and-leaseback transactions valued at P98.3 billion since April 2022.

PLDT has entered into tower sale-and-leaseback deals with Edgepoint’s Philippine subsidiary, Comworks Infratech Corp., edotco Group’s ISOC edotco Towers, Inc., and Unity Digital Infrastructure, Inc.

According to a report released in June by Moody’s Investor Services, PLDT still has 4,430 towers or 37% of its tower portfolio available for monetization.

According to the report, PLDT has completed 70% of its announced tower sales as of May 16, amounting to P69.5 billion.

PLDT’s attributable net income for the second quarter rose by 22.4%, reaching P9.44 billion compared to P7.71 billion in the previous year. This increase can be attributed to higher revenues and lower operational expenses.

In the first six months, the company reported a net income of P18.45 billion, which is 9.9% higher than the P16.79 billion recorded in the previous year.

PLDT disclosed its goal of achieving an asset-light balance sheet and providing affordable internet services through the sale and leaseback of towers.

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