SkyCable looks to IPO in 2008

Manila - The Lopez group is taking leading cable TV operator SkyCable public next year, aiming to raise more than P3 billion (US$69.3 million), to fund digital video, new content, broadband and VOIP expansion, and service debt and restructuring.

The company expects to finish 2007 with 458,130 customers, about half the legitimate market for pay-TV in the Philippines.

The significant growth driver will come from combating piracy, accelerating digital migration and growing ARPU, says Media Partners Asia, noting the firm is benefiting from renegotiating programming agreements and a weak US dollar, as most its key program contracts are denominated in US dollars.

Chief Operating Officer Carlo Katigbak also attributes the company’s turnaround after a net loss last year to a crackdown on illegal connections, higher fees and a decline in monthly churn. In the past two years, SkyCable was prey to 200,000 illegal connections but it has managed to disconnect 150,000 and convert 21% to legal subs.

Separately, the Lopez-owned ABS-CBN is planning an IPO for its international broadcasting unit ABS-CBN Global, which will likely list in Singapore by 2009.