ABS-CBN sets P1.5-B expansion

Media giant ABS-CBN Broadcasting Corp. has allotted P1.5 billion for the expansion and upgrading of its facilities, including the capacity boosting of its multi-media subsidiaries. The project is set to be completed this year.

Meanwhile, the company's board of directors declared a cash dividend of 50 centavos per share -- estimated to amount to P390 million -- for stockholders on record as of April 14, to be paid on May 12.

ABS-CBN stocks closed P1 higher yesterday at P57.50 per share.

The P1.5-billion capital outlay, to be taken from the company's retained earnings last year, will be used to complete the building works and upgrading of the studio facilities at the main compound in Mother Ignacia and in the adjoining former Jusmag compound which now houses the cable channel ABS-CBN News Channel.

The country's dominant media entity operates the flagship VHF station Channel 2; leading UHF channel Studio 23; cable channel ABS-CBN News Channel (formerly SNN); online news provider ABS-CBN Online; radio stations DZMM (AM) and DWRR (FM); film outfit Star Cinema; and recording studio Star Records.

ABS-CBN is the main revenue contributor among the Lopez-owned Benpres group with about 45 percent of total revenues. In 1998, ABS-CBN earned P1.7 billion from its operations and is expected to add up 15 percent in profit growth last year.

Its earnings growth has been mainly driven by the continued surge in advertising revenues, growing by 18 percent to 20 percent annually.

Based on the independent AC Nielsen survey, Channel 2 garnered a full year audience share of 43 percent in Metro Manila last year. With the company in the forefront of new technology, it launched in 1998 website abs-cbn.com and spun off a news and current affairs division (abs-cbnnews.com) known as ABS-CBN News Online.