MANILA, Philippines - ABS-CBN Corp. has set a profit target of P1.8 billion to P2 billion for this year, as the broadcasting giant expands to digital TV, mobile phone business and theme parks.
ABS-CBN says profit will beat analysts' expectations in part because of strong movie revenue, saying Star Cinema gave it a very strong January.
This year's profit guidance is steady from last year's P2 billion, which ABS-CBN group chief finance officer Ron Valdueza says would beat analyst estimates.
On Monday, ABS-CBN listed on the Philippine Dealing and Exchange Corp. P6 billion worth of retail bonds it issued two weeks ago.
"I consider this a milestone for our company. Through this transaction, we were able to raise P6 billion but I think the importance of this bond goes beyond simply raising the target amount. The issue was oversubscribed and we could have probably raised the authorized amount of P10 billion if we opted to," ABS-CBN chairman Gabby Lopez said during the listing ceremony.
"We have set a benchmark for this issue and successfully accessed the market that could become an important source of financing for our future endeavors. We will probably be back before 2021, probably to pay off this one. This transaction should raise our profile before the investing community and hopefully lower our funding costs later on," he added.
ABS-CBN said it will use the fresh capital to expand its digital terrestrial TV capacity, build its stock of TV programs and movies and construct sound stages. It is also building a children's theme park called "Kidzania."