ABS-CBN allots P8-B capex for 2017

ABS-CBN Corp. set its capital expenditures this year at P8 billion, mostly to fund its investments to expand its broadband infrastructure.

“We’re still looking at that vicinity of about P8-billion in terms of capex,” ABS-CBN Chief Financial Officer Aldrin M. Cerrado told reporters in a recent interview. “[It will] used for the same allocation as last year. We’re still improving on our infrastructure for broadband which is the biggest grower in terms of revenue and subscribers for the cable, satellite and broadband business,” he added.

This year’s capex is lower than the P8.8 billion allocated by the Lopez-led media and entertainment giant in 2016. Of the amount, P7.7 billion was used.

ABS-CBN spent the bulk of its capex for digital initiatives and maintenance, Pay TV Networks, and program rights. Pay TV Networks refers to its cable and broadband businesses under SkyCable. Mr. Cerrado said then that the unused capex was largely from Pay TV Networks due to the delays in the roll out of its SkyCable’s direct-to-home pay TV service under SkyDirect.

Asked about fund-raising plans this year, Mr. Cerrado said there’s none at the moment since the amount unutilized in 2016 was carried over to this year’s budget.

ABS-CBN recorded a P3.5-billion net income in 2016, up 39% from the P2.5 billion seen in 2015 as election-related advertising drove revenues higher.

In 2016, advertising revenues, boosted by election-related spending, rose 11% to P23.65 billion from P21.26 billion while revenue from its consumer business jumped 6% to P17.98 billion

Shares in ABS-CBN ended at P46.50 each on Thursday, down 0.11% from its previous finish of P46.55 apiece. —