ABS-CBN signs P2B loan
abs-cbnNEWS.com | 09/30/2008 5:44 PM
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Television giant ABS-CBN Broadcasting Corp. signed a P2.0 billion loan—the second tranche of its P3.0 billion term loan facility jointly arranged by BPI Capital Corp. and SB Capital Investment Corp.
The firm said in a disclosure to the Philippine Stock Exchange that the facility's first tranche, amounting to P1.0 billion, was already signed last August 15, 2008.
Proceeds from the loan facility will be used to finance ABS-CBN's planned improvements in network transmission capabilities and upgrades in production equipment for this year and next.
The firm is allotting P1.6 billion for capital expenditures and acquisition of film rights this year.
Meanwhile, ABS-CBN jumped to the 43rd slot in the Securities and Exchange Commission's 2007 list of top 200 corporations from the 68th place in the previous year.
The firm's ranking improved its net profit in 2007 jumped by an annualized 71 percent.
The company – which has interests in radio, cable television, movie production and publishing – had a net profit of P1.27 billion and total sales of P19.89 billion in 2007.
In contrast, its chief rival GMA Network Inc. slipped to the 93rd place from 77th in 2006.
According to a report by the regulator, other Lopez companies also improved their ranking.
Power distributor Manila Electric Co. (Meralco) is now the Philippines' second largest company, next to Petron Corp., which got the top slot. Meralco ranked third in 2006.
Energy investment firm First Philippine Holdings Corp. was steady on the 16th place while conglomerate Benpres Holdings Corp. rose to the 42nd place from 50th in 2006. ABS-CBN is a unit of Benpres.
Telecommunications company Bayantel jumped to the 124th slot from the 154th slot in 2006.
For the first six months of the year, ABS-CBN recorded a recurring net income of P754 million, up 33 percent from the P567 million recurring net income in the same period of 2007.
Consolidated revenues, on the other hand, reached P10.2 billion, as ad minutes growth and ad rate increases more than made up for the non-recurring political advertising revenues generated in the comparable period last year.
ABS-CBN chief financial officer Rolando Valdueza said the media conglomerate is now aiming for a 15-percent gain in net income for the entire year to P1.5 billion, from P1.3 billion in 2007.
