| THE Lopez-controlled media empire ABS-CBN Broadcasting Corp. could post more than 20-percent growth in cash earnings this year once after converting into equity the $30-million convertible notes it subscribed from Sky Vision Corp.
Sky Vision is the leading cable TV provider in the country.
“Our numbers today don’t reflect Sky Vision’s earnings before interest, taxes depreciation and amortization [EBITDA]. But towards the third quarter of this year, it would be incorporated as soon as the conversion price is finalized by an independent third- party appraiser,” ABS-CBN chairman Eugenio Lopez III said.
ABS-CBN would gain control of Sky Vision upon its conversion of the convertible notes. After the transaction, Central CATV would be the surviving company.
“While its final contribution into ABS-CBN will be determined by the valuation, this, together with the rapid growth in our Global Business, would further boost total company EBITDA,” Lopez said.
At the end of the first quarter, ABS-CBN’s EBITDA amounted to P1.12 billion, up 29 percent from the year-ago level.
ABS-CBN plans to have Sky Vision and ABS-CBN Global listed in the stock market by 2009.
“For Sky Vision, our plan is to list it here while for Global, we are eyeing [either] Singapore, London or Hong Kong as a possible venue,” Lopez said.
ABS-CBN is spending P2.5 billion this year. Around P1.5 billion would fund the maintenance and acquisition of new equipment, while P1 billion would finance its venture into digital television later this year.
The Digital TV project would initially be launched in Northern Luzon, Lopez said.
Income target
THIS year, ABS-CBN is targeting a net income of P1 billion, 35-percent higher than P741 million a year earlier.
“Since March, we’ve been hitting over P1 billion in sales, same for April and May,” Lopez said. “And two out of those three months, Channel 2 alone hit P1 billion, which we’ve never achieved in the past. And it is not like our ratings are significantly above our competitor. We’re just at par mostly for Mega Manila area. It just reflects that we can continue to sustain our growth even if we don’t dominate the ratings landscape as we had in the previous years.”
From January to March this year, ABS-CBN’s net income amounted to P280 million from P118 million a year earlier. Gross revenues, on the other hand, rose eight percent to P4.18 billion.
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