ABS-CBN chief financial officer Randy Estrellado said the company is now reviewing different business models on how to go about the planned initial public offering (IPO) of ABS-Global. "We hope to have it listed in two or three years," he said.
Estrellado said that by that time, ABS Global, which distributes ABS-CBN-produced programs abroad, would have met the requirements of Singapore’s equities market.
The Singapore Stock Exchange requires a minimum profit for entities intending to go public. Last year, ABS-CBN Global’s net sales amounted to P2.37 billion or 65 percent of ABS-CBN’s total net sales and services.
Bulk of ABS-CBN Global’s revenues came from subscription revenues of its cable and direct-to-home service with an estimated viewership base of 1.3 million by end-2003, up 24 percent from a year ago. Of its total viewers, around 53 percent are located in North America.
ABS-CBN Global’s contribution to ABS-CBN’s income boosted the network’s 2002 revenues, which increased by 12 percent from P9.91 billion to P11.06 billion. Other subsidiaries which pushed the broadcast firm’s revenues were ABS-CBN Film Productions Inc., Creative Programs, Inc., ABS-CBN Publishing, and Star Records.
ABS-CBN officials earlier said proceeds from the IPO would be used to further beef up international operations and possibly acquire a broadcast network in Asia.
ABS-CBN’s investments abroad involve satellite and direct-to-home operations. It offers all-Filipino programming through The Filipino Channel (TFC), the first and only 24- hour cable and satellite service.
To further strengthen operations abroad, ABS-CBN is looking at expanding its presence in Canada and Australia given the high concentration of Filipinos in those two countries. It also intends to expand its cable services in Asia, particularly in Hong Kong, Singapore and Taiwan.
The firm’s top priority, however, is Europe where ABS-CBN had just set up a cable and direct-to-home satellite last December. – Zinnia dela Peña