IBC-13 Modernizes for More Expansion

February 11, 2014

Sequestered broadcasting firm Intercontinental Broadcasting Corp. (IBC) is undertaking a modernization program to gear the network to local and international expansion. Part of its modernization plan is the upgrading of its facilities through the use of modern and sophisticated technology.

Last 2011, the company launched Global IBC which uses Panamsat's PAS 2 satellite to reach out viewers in Asia, Australia, and as far as US West Coast 24 hours a day began a 24 hour uplink with a Hughes Galaxy 4 satellite that enables the company to reach over 2 million Filipinos throughout the rest of North America through cable or direct home dishes. Global IBC now serves over 13,000,000 viewers in the US.

The company will also launch this month IBC Licensing and Merchandising, its licensing and merchandising arm. Aside from television and radio owned by IBC, this holds rights to different blockbuster international movies such as Walt Disney movies and the like. The company will promote movies, television and videos to be supplemented by novelty items such as T-shirts, toys, dolls, and writing instruments.

The Kapinoy Network is planning to buy 12 FM radio stations and expects to gain a 20% share in the P1.0 billion FM industry. As the company embarks into different ventures, it enjoys a better share of what it has toiled upon. According to interim results, the firm earned net income of P500 million for the first months in 2013, up by 15% on gross income revenues of P4,000 million. The results are in line with the full year target of 1,382 million. While cost of production increased within normal limits, operation expenses rose by a hefty 10% against 4% in 2013. This translates into operating income growth of 30% in 2013 from 20% in 2012.

This increase in operating expenses was mainly brought about by the on-going P5000 million expansion and modernization program of the company. The competition within the industry has in fact benefited IBC as it was forced to find ways to be more innovative to maintain its dominant position in the business network in the giant networks ABS-CBN Corporation and GMA Network.