Lopez Group takes up 40% of ABS-CBN preferred shares

MANILA, Philippines - The Lopez Group of companies subscribed to a little over 40 percent of the one billion preferred shares issued by its media arm ABS-CBN Corp., the broadcast giant informed the Philippine Stock Exchange (PSE).

ABS-CBN corporate secretary Enrique Quiason told the PSE that Lopez Inc. subscribed to 414.79 million preferred shares that were not subscribed by the stockholders during the rights offering from Jan. 7 to Jan. 25.

The broadcast firm raised P200 million through the issuance of one billion preferred shares to existing shareholders to bankroll its foray into business lines as well as financing plans for so-called digital terrestrial television.

Quiason explained that the company yesterday issued one billion preferred shares with a par value of P0.20 per share in connection with its rights offer concluded last January.

Once issued, the preferred shares would represent 56.7 percent of the total outstanding shares of ABS-CBN.

The earnings of ABS-CBN fell 31 percent to P1.56 billion in the first nine months of the year from P2.24 billion in the same period last year. Removing the effects of the one-time P825 million gain from the sale of investments recognized in the first nine months of 2011, net income increased by 10 percent this year.

Revenues from advertising and consumer sales climbed 13 percent to P24 billion with advertising revenues accounting for 60 percent of total consolidated revenues while consumer sales made up the balance of 40 percent.

ABS-CBN is primarily involved in television and radio broadcasting, as well as in the production of television and radio programming for domestic and international audiences and other related businesses.

It produces a wide variety of engaging world-class entertainment programs in multiple genres, and balanced credible news programs that are aired on free-to-air TV via Channels 2 (VHF) and 23 (UHF), along with a regional network of TV and radio stations nationwide.

The company also provides news and entertainment programming for nine channels on cable TV and at the same time owns a film and music production and distribution outfit in the Philippines, and has interests in cable TV, mobile and Internet multimedia services, and glossy magazine publishing.