ABS-CBN Corp., a leading media and entertainment network in the country, is set to spend P2 billion of its capital expenditure (capex) on the upgrade of its subsidiary SkyCable, the country’s largest cable television provider.
The amount will be spent on plant maintenance, deployment of digital set-top boxes and expansion of the company’s broadband coverage.
“Total capex for this year is P6 billion, including P2 billion for SkyCable,” ABS-CBN Group Chief Finance Officer Rolando Valdueza told reporters.
“The P2-billion capex is really going to be funded from internal cash. The bulk of it is going into plant maintenance, deployment of digital set-top boxes, and an expansion of our broadband coverage,” Valdueza said.
SkyCable continues to dominate the cable TV business with more subscribers than its closest competitor, the company said. Currently, Skycable has about 700,000 subscribers, including 180,000 it inherited when it acquired Destiny Cable.
ABS-CBN’s net income in 2013 showed a 25 percent increase to P2.028 billion from P1.618 billion in 2012 on higher advertising revenue that was further enhanced by election spending.
Net revenue for last year rose 15 percent to P33.4 billion from P28.9 billion the previous year.
Total assets increased to P57.99 billion in 2013 from P51.3 billion in 2012, while its equity base expanded to P25.9 billion from P19.4 billion. The Lopez-led company said it forged various strategic partnerships in 2013 consistent with its overall plan to bring quality content to its customers through various platforms.
For instance, The Filipino Channel’s (TFC) agreement with Orbit Showtime Network has allowed ABS-CBN to further broaden its reach to Filipinos in the Middle East, adding about 50,000 customers.