ABS-CBN allots P3 B for DTH, broadband biz

MANILA, Philippines -  ABS-CBN Corp. is planning to spend over P3 billion for its direct-to-home (DTH) and broadband businesses this year.

ABS-CBN chief financial officer Aldrin Cerrado told reporters the company is looking to spend around P3.3 billion for the DTH pay TV service as well as the broadband business this year.

The company is looking to invest in the DTH and broadband businesses to continue to increase the number of subscribers in the two segments and enable both to continue to contribute to the company’s revenues.

Revenue of Sky Cable Corp., the cable TV and broadband service provider of ABS-CBN, grew 11 percent to P2.30 billion in the first quarter from P2.07 billion in the same period last year.

ABS-CBN Group chief financial officer Ron Valdueza attributed the increase in revenue to the growing broadband and DTH subscriber count.

As of end-March, Sky had 672,000 cable subscribers, 161,000 DTH subscribers and 205,000 broadband subscribers.

“The strong growth in our broadband subscriber base, which has doubled in two years, should continue as we invest in expanding our network,” Valdueza said.

Earlier, ABS-CBN said it has set the capital expenditures at P8 billion this year.

As of the first quarter, ABS-CBN has spent P1.7 billion of the programmed capex for the year.

ABS-CBN’s net earnings reached P314.40 million in the first quarter, down 59 percent from P760.63 million in the same period last year.

Despite the year-on-year decrease in net income in the first quarter, ABS-CBN remains confident it could achieve the P3 billion net profit guidance this year.

Last year, ABS-CBN’s net income amounted to P3.53 billion, up 39 percent from the P2.55 billion in 2015.