Manila, Philippines (March 20, 2017) – ABS-CBN’s subsidiary Sky Cable Corp. gets more than 950,000 pay television subscribers as of December 2016, only a little short with its 1 million target. On the overall, growth in subscribers was driven by its new direct-to-home (DTH) satellite service – SkyDirect.

The country’s leading media company made the disclosure during the 14th Credit Lyonnais Securities Asia (CLSA) Ltd. ASEAN Forum held in Bangkok, Thailand from March 8-10, 2017.

As of year-end 2016, SkyCable has over 844,000 subscribers composed of 708,000 wired cable customers and cable plus broadband or “Sky Bundle” with 136,000 subscribers.

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Its new direct-to-home (DTH) satellite business, launched nationwide last May 2016, already got 112,000 subscribers. It already surpassed its target of 49,500 subscribers in the first year of operations.

Estimated average revenue per user (ARPU) for SkyCable (wired) remains decent at Php 628. Sky offers prepaid and postpaid plans starting at Php 299 and up to Php 1,999. Meanwhile, ARPU from Sky Direct is on the lower tier at Php 128 with plans as low Php 99 to Php 450 a month.

These figures exclude purely internet subscribers of Sky Broadband. Broadband subscribers jumped to 207,000 with a record 45 percent growth as of year-end 2016 and enjoys a high ARPU of Php 1,172. Broadband packages range from Plan 999 to 2,899.

Combining Sky Broadband subscribers would bring Sky’s total subscriber base to over one million.

Pay TV business of ABS-CBN Corporation in a presentation to CLSA Investors Forum 2017 held in Thailand. Photo courtesy of ABS-CBN.

1M Target

ABS-CBN plans to achieve 1 million users and is optimistic that with the launch of SkyDirect DTH, it will be able to regain its lead in the cable industry in terms of subscriber base, which is currently dominated by PLDT Inc. unit Cignal TV with over 1.2 million subscribers.

SkyDirect DTH allows the company to expand its services to more than 250 cities and municipalities nationwide, from only 19 cities across the country where it provides wired cable TV services.

Sky Direct operates via SES-9 satellite. Photo courtesy of Sky Direct Facebook page.

SkyCable is the only pay TV firm in the country that offers both cable and satellite pay TV services.

SkyCable signed a multi-year, multi-transponder agreement with leading satellite provided SES. Sky Direct broadcast its DTH satellite TV channels via new SES-9 satellite at 108.2 degrees East.

In the first nine months of the year, SkyCable posted Php 6.4 billion revenues, up six percent from Php 6.01 billion in the same period last year.

The company signed a deal with global satellite operator SES to rollout DTH satellite services in 250 cities and municipalities nationwide in the second half of the year.

SkyCable is part of ABS-CBN’s growing consumer sales business, which generates annual revenues of around P17 billion or 45 percent of the company’s total.

As of September 2016, SkyCable’s contribution is 20 percent of the entire revenue mix. Advertising revenues remain to be ABS-CBN’s bread and butter at 59 percent of the company’s overall as of September 2016.

Sky contributes 20% of the total revenue mix for ABS-CBN Corporation. Photo courtesy of ABS-CBN.

ABS-CBN had said it is allocating around P2 billion for capital expenditure in 2016 to finance the investment in DTH satellite services.

The company is competing with five other DTH operators namely PLDT subsidiary Mediacape Inc. (Cignal TV), First United Broadcasting Corp. (Global Satellite or GSat) and pioneer DTH provider Philippine Multi-Media Systems Inc. (Dream Satellite).

Investors’ Briefing

ABS-CBN Corp. posted a net income of P2.85 billion in the first nine months of 2016, up 50 percent during the comparable period last year.

ABS-CBN Corp. will be having its analysts’ and investors’ briefing on March 20, 2017, 3:30 pm, at Makati Shangri-La for the full year 2016 operating results of the company.

The company is listed in the Philippine Stock Exchange (PSE) with the stock symbol ABS.

CLSA

CLSA Investor Forums offer corporations highly targeted access to global fund managers through one-on-one, group private meetings and presentations.

Global leaders and industry specialists use CLSA Investor Forums as a platform to examine the economic, political, financial, environmental and technological trends impacting global markets.

In the past, keynote speakers have included Tony Blair, Bill Clinton, George Clooney, Bob Geldof, Al Gore, Alan Greenspan, Jose Ramos-Horta, Lee Kuan Yew, Sarah Palin and Edward Snowden to name a few. [techthetruth]


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