ABS-CBN chief financial officer Randolph Estrellado said the company is considering expanding its operations in Europe as part of efforts to tap the large market of Filipino workers abroad and to augment the TV network’s income.
Estrellado said ABS-CBN will form a new international company that will serve as the vehicle for its planned venture.
He said the broadcasting giant is also studying the possibility of setting up a broadcast station in Canada to further widen its coverage. There is a problem though on the programming content as the Canadian government wants 40 percent of the shows to be comprise of Canadian programs.
ABS-CBN Global, the company’s international subsidiary which delivers the best Philippine information and entertainment from ABS-CBN, has 160,000 subscribers. Of the total, 120,000 are from the US, 25,000 from the Middle East while the rest are from Hong Kong, Singapore and Australia.
Esrellado said ABS-CBN Global’s plans to undertake an initial public offering will have to be deferred until the company meets the required revenue targets set by the Singapore Stock Exchange.
In line with efforts to streamline operations and strengthen its balance sheet, ABS-CBN closed down six of its subsidiaries that were deemed not critical to the success of the group’s main business.
The closure of ABS-CBN Consumer Products, Shopping Network Inc., Cinemagica, ABS-CBN Hongkong Club, ABS-CBN Europe Societa Per Azioni, and Pinoy Auctions resulted in a one-time charge of P272.31 million to the broadcasting giant’s bottomline for 2002.
Despite these non-recurring charges, ABS-CBN reported a net income of P166 million last year as against P1.38 billion in 2001. Excluding losses from discontinued operations, net income for 2002 would have amounted to P438 million, down 68 percent from the year ago level.
Consolidated gross revenues, on the other hand, were flat at P9.91 billion.