The Philippines’ biggest media and entertainment network ABS-CBN Corp has allocated PHP6 billion (USD115 million) for capital expenditure projects in 2019, to further develop its digital transformation, expand its broadband business and develop its programme rights acquisition strategy. According to CFO Aldrin Cerrado, the sum is broadly in line with past CAPEX, but in the current year the amount allotted for digital services will be higher, he said. ‘Most of the consumers of the Philippines have migrated from analogue to digital and big digital companies are the ones generating advertising revenues, while in the Philippines that may not be true yet, we want to be in the position,’ he confirmed.
ABS-CBN Corp reported a net income of PHP1.9 billion in FY 2018, down 40% from PHP3.16 billion in FY 2017, due to ‘weak advertising sales’, as advertising revenue fell 3.4% to PHP20.38 billion from PHP21.09 billion in 2017 on fewer advertising placements. The group’s Sky Cable Corp unit saw its revenue decrease 2.1% year-on-year as the unit experienced a 69,000 net fall in cable subscribers. However, Sky’s overall subscriber count rose by 489,000 in 2018, significantly attributable to direct-to-home (DTH) subscriptions.