PHILIPPINES, MAY 13, 2011 – Singaporean firm STT Communications Ltd. (STTC), a leading information communications group in Singapore, has bought a 40% economic stake in Sky Cable through its local subsidiary Sampaquita Communications Pte. Ltd.
The STTC investment, worth P3.86 billion, it was announced in yesterday’s press briefing. STTC is a subsidiary of private investment firm ST Telemedia within Temasek Holdings, the nvestment company of the Singaporean government.
The Lopez Group of Companies has virtually all of the remaining economic interest and 99% voting control over Sky Cable, a subsidiary of ABS-CBN Corporation.
ABS-CBN Chairman and CEO Gabby Lopez said in a statement: “Sky Cable will be able to leverage on the technical expertise of STTC and to continue providing its customers with innovative, world class services as it expands its Pay TV and high speed broadband service offerings.”
In an earlier briefing, ABS-CBN announced lower profits in the first quarter of 2011 versus the same period last year, although P674 million of the Sky Cable sale fell within the quarter. Last year’s higher profits are attributed to election-related advertising. First quarter advertising revenues amounted to over P4.012 billion, a 21% decrease from 2010.
ABS-CBN Chief Financial Officer Rolando Valdueza remains optimistic that the company will hit this year’s target of P3.1 to P3.2 billion.