Sky Vision sees major turnaround this year

Sky Vision Corp., the country’s largest cable television company under the Sky Cable brand, expects to post a major turnaround in its financial performance this year with earnings seen to hit P104.9 million, from a P50.5-million net loss incurred a year ago, on the back of a growing subscriber base.

Sky Vision head Carlo Katigbak said revenues are likewise forecast to grow 12.5 percent to P3.6 billion from P3.2 billion in 2006 while EBITDA (earnings before interest, taxes, depreciation and amortization) is seen to rise 16.7 percent to P900.3 million from P771.4 million.

He said Sky Vision expects to end the year with an estimated subscriber base of 458,100 as the company seeks to expand its reach in preparation for a planned initial public offering (IPO).

He said the company plans to offer more channels, expand service coverage area and roll out pre-paid services for some of its channels to further grow its business. Sky Vision would need P1 billion to fund these initiatives.

ABS-CBN Broadcasting Corp. chairman and chief executive officer Eugenio Lopez III said Sky Vision is eyeing to raise P3 billion from the maiden offering of its shares to the public.

Sky Vision was a unit of the Lopez-owned Benpres Holdings Corp. before its stockholders approved the transfer of shares to unlisted holding firm Lopez Inc.

ABS-CBN expects a earnings boost this year after the completion of the conversion into equity of its $30-million advances to Sky Vision which was made in June 2004.

ABS-CBN, which owns 10.2 percent of Sky Vision, has acquired P1.8 billion worth of Sky Vision’s liabilities in cash and debt.

The move was in line with efforts to restructure the cable firm’s debt to “allow it focus on its business and capitalize on the market opportunity that exists in the Philippine pay TV industry.”