LOPEZ-led media giant ABS-CBN Broadcasting Corp. said Central CATV will start contributing substantially to its revenue this year alongside global operations unit ABS-CBN Global.

In a briefing Tuesday, Vivian Tin, head for research and business analysis, told  reporters the two units will account for a third of the network’s revenues for 2008, as Central CATV’s financials will be consolidated into the books of ABS-CBN by the second quarter or upon the conversion of the network’s convertible notes into equity in the cable company. Central CATV carries the popular Sky Cable brand.

Last year, ABS-CBN announced plans to convert into equity the $30-million convertible notes it subscribed in June 2004 from Sky Vision Corp. ABS-CBN owns 10.2 percent of Sky Vision, the holding firm that owns 66.5 percent of Central CATV. The balance of 33.5-percent equity belongs to the PLDT group.

With the conversion, ABS-CBN will gain control of Sky Vision as its stake increases to as much as 75 percent. Central CATV will become the surviving company.

“The consolidation in itself is going to be significant growth in both net income and EBITDA [earnings before interest, taxes, depreciation and amortization]. And of course, we expect continuous growth from global. Although there is slowdown in the US economy, it has been our experience that there’s resiliency in terms of demand for entertainment, especially because they need to be in touch with the Philippines. So we don’t expect any notable impact from slowdown in the US economy in terms of subscription growth. We still expect subscription growth to be double digit,” Tin said.

At the end of 2007, the cable firm’s gross sales amounted to P3.5 billion while its net income grew to more than P100 million. ABS-CBN Global, on the other hand, increased its subscriber base by 22 percent with international viewers numbering to 1.7 million at the end of last year.

ABS-CBN, whose shares are traded on the Philippine Stock Exchange, also expects to post gains from the planned 15-percent raise in its rate card for advertisers this year.

The network posted a net profit of P1.27 billion in 2007, 71 percent higher from its 2006 income of P741 million. Consolidated revenues reached P19.9 billion, up 17 percent year-on-year driven by airtime revenues and sale of services.

Airtime revenues grew 28 percent to P13.6 billion on the back of higher advertising rates and higher volume. The company increased its advertising volume last year by 9 percent, even as the industry as a whole, saw a decline in volume.

This year, ABS-CBN is allotting P1.6 billion in capital spending for film rights acquisition and improvement of reception in the provinces.

LOPEZ-led media giant ABS-CBN Broadcasting Corp. said Central CATV will start contributing substantially to its revenue this year alongside global operations unit ABS-CBN Global.

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