ABS-CBN allots P6 B for capex

MANILA, Philippines - Mutlimedia giant ABS-CBN Corp. has earmarked P6 billion for its capital expenditures to bankroll the expansion program of its broadcast unit as well as its pay-TV business this year.

ABS-CBN group chief financial officer Rolando Valdueza said bulk of the amount or P4 billion would be utilized by ABS-CBN, while the remaining P2 billion would be used by SkyCable.

Valdueza said this year’s capital expenditures would be funded through a combination of borrowings and equity.

“Total capex for this year is P6 billion, of which P4 billion is for the ABS-CBN Group and P2 billion is for SkyCable. It will be funded through the usual,” he said in a press conference after the company’s Annual Stockholders’ Meeting Budget for the ABS-CBN Group would be used for production forward planning including production canning or advanced production of television programs and movies as well as construction of sound stages.

On the other hand, ABS-CBN Convergence Inc. and SkyCable president Carlo Katigbak said the P2 billion capital expenditures of SkyCable would go to plant maintenance, deployment of digital set-top boxes, and an expansion of broadband coverage.

The company is looking at growing its subscriber base by 12 to 15-percent to about one million this year from the current level of 800,000 subscribers for its pay-TV business.

It is also set to grow its broadband subscriber base by as much as 50 percent form the current level of 80,000 subscribers.

Earnings of ABS-CBN jumped 25 percent to P2.03 billion last year from P1.62 billion in 2012 as revenues rose 15 percent to P33.4 billion from P28.9 billion due to political advertisements.

ABS-CBN chairman Eugenio Lopez III told reporters that the listed firm has evolved.

“We overcame the boom-bust approach. Usually, the broadcast companies only make money in an election year. And it looks like this year, our ambition is to have the same net income target we had in 2013, which was an election year, showing that our investments in various businesses are reaping the profits that enabled us to go beyond simply a company that does well on election year,” Lopez explained.