MADRID -- For the first time since 1997, when it launched its digital TV platform Canal Satelite Digital, Spanish film and TV conglom Sogecable has posted full year profits.
Earnings before interest and taxes stood at Pta548 million ($3.1 million) for 2000, compared to losses of $21.1 million a year earlier. Net revenues for the year were $821.5 million, up 15% from 1999.
Sogecable's results show the group continuing its steady march toward total profitability when it will totally wipe out startup costs for CSD.
Sub count jumps
The digital satcaster saw a dramatic increase in its subscriber count in January that took its total sub base beyond 1.1 million.
In financial terms, Sogecable now faces two challenges. One is to analyze the performance of the niche channels on CSD's basic package. Another is to try to reduce the cost of its payments for PPV rights to local soccer games. Like rival Via Digital, Sogecable has been forced to pay an arm and two legs for the matches. But only games featuring Real Madrid and Barcelona have proved truly popular.
Sogecable is a joint venture between managing shareholder the Prisa Group and Canal Plus in France, which hold 21% each.
Despite punishing most media companies, the Madrid stock market reacted well to Sogecable's yearly results, pushing up its share price by 2.4% during trading Friday.
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