ABS-CBN Broadcasting Corporation  is investing P1.5 billion to expand its local cable TV and broadband business in the second semester even as it reported an 8 percent improvement in profits in the first half of 2009 to P813 million.

In a press briefing Wednesday, ABS-CBN chief financial officer Ronaldo Valdueza said they are encouraged by the performance of Skycable and intends to expand its services nationwide.

He said they will invest P600 million more for the expansion of their broadband service in Metro Manila although they will eventually expand it to key cities in the country next year.

Valdueza said they have already started offering their high speed broadband services in Cebu, Davao and Baguio although the P600 million will be spent only in Metro Manila.

He noted that this is a good investment since the payback period is only 12 months and it provides a steady stream of recurring revenues.

Skycable is also investing P500 million for set-top boxes which will allow it to fight signal piracy and offer pre-paid services while another P400 million will be spent to acquire other equipment.

Valdueza said ABS-CBN’s higher first half earnings comes on the back of stronger consolidated revenue growth and a tight rein on spending for the first six months boosted ABS-CBN’s net income to P813 million in the first half of 2009, 8% higher year-on-year.

ABS-CBN’s consolidated revenues of P11.7 billion in the first six months of 2009 is 14% higher than consolidated revenues in the first half of 2008.

Consolidated airtime revenues from all platforms reached P6.72 billion for the first half of 2009, 6 percent better than it was in the same period last year.

Consolidated direct sales for the same period amounted to P4.97 billion, 28 percent more than in the same period last year. This includes Skycable’s revenue contribution to-date of P1.79 billion.

ABS-CBN’s financial results include the contributions of Skycable for the 1st and 2nd quarters of 2009 and the 2nd quarter of 2008. (JAL)