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ABS-CBN
Broadcasting Corp. secured a P1.4-billion loan facility
with Banco De Oro-EPCI Inc., which was used to retire a
$31-milion dollar debt.
In a
disclosure to the stock exchange, the company said the
peso loan facility carries a five-year maturity period.
Miguel
Jose T. Navarrete, vice president and chief financial
officer of ABS-CBN, told the BusinessMirror the company
took the opportunity to tap the facility because of the
prevailing favorable market conditions such as the
strong peso and the low interest rates.
“This is
beneficial moving forward because we don’t have to fear
possible currency fluctuations,” he said.
Also,
with the stable maturity rate, ABS-CBN will be able to
further improve its cash-flow position, which will allow
them to support their investment needs.
ABS-CBN
ended the first nine months with a net income of P1.1
billion, 100-percent higher than the P551 million it
earned in 2006.
The
growth was bolstered by an ongoing improvement in its
advertising business and the rising contribution of
subscription-based business.
Chairman
and chief executive Eugenio Lopez III said higher
revenues the company posted during the period also
influenced the net profit, amounting to P14.5 billion
versus P12.7 billion a year earlier.
“The
revenues were driven by higher airtime revenues and sale
of services. Airtime revenues grew a robust 23 percent
to P9.9 billion on the back of improved ratings and
higher advertising volume,” said Lopez.
He said
the company already exceeded the P1-billion net income
target for the full year of 2007.
“I think
a net profit of P1.4 billion is achievable given the
levels that we are at now,” he said. |
