Sogecable, the audio-visual group controlled by Telephone Haste and, looks for alternatives to compensate the stagnation of its main business: the pay television.
The company has on sale put its rights of soccer emission and cinema, the main contents of its programming, with the aim of increasing its income. Sogecable has given entrance to Mediapro, with a participation of 25%, in the Audio-visual shareholders of Sport, the holding company of sport rights controlled by the group. In addition, it has abierto the rights of soccer in payment by vision to his rivals and now studies to also share Channel +, the channel stars of his platform of pay television.
In the last quarterly, Digital+ caught 4,200 subscribers, as soon as 10% of the discharges in pay television of the market. Imagenio, the television by ADSL of Telephone, caught 40%, whereas Ono and the rest of cable operators distributed to 50% rest.
With these results, Sogecable confirms the stagnation of its platform. Two year and a half after the fusion between Satelite channel and Via Digitalis, that gave rise to present Digitalis +, the audio-visual group has not managed to both surpass the threshold of million clients which they added, before the fusion, the two companies. The quota of market of Sogecable in pay television has happened of 71% that it had in 2003 to 58% whereupon it closed the first trimester of 2006, before the push of Imagenio and its cable rivals.
In addition, the monthly average income by subscriber (arpu), keys in a mature market like the one of the pay television, have fallen in the last quarterly until the 42.4 Euros, against the 47.2 Euros Euros of the previous trimester. This reduction is explained partly by the absence of Liga of soccer in June, that reduced arpu of the services of payment by vision to half, up to 4.1 Euros by subscriber. Nevertheless, when comparing the income with the same trimester, the results are similar. In a year the entrance has fallen in 5,5 Euros by subscriber.
In order to compensate this circumstance, Sogecable looks for income extra with the commercialization of audio-visual rights third parties. The sale of the emission of Liga of abierto soccer in to Sixth will report to the audio-visual group annual income superiors to the 110 million Euros, corresponding to 75% that it controls in Audio-visual Sport. In addition, the company has yielded to its competitors the rights of the parties of Liga in the modality of payment by vision, that initially only emitted Digitalis +.
After presenting/displaying the results of the second trimester, the past July, the chief of a main directorate of Sogecable, Carlos Abbot, recognized for the first time, according to gathered Bloomberg, the possibility of selling to other platforms Channel +, the package of contents premium of the group, that until now are emitted exclusively in Digital+.
With the income that it obtains by these cessions, Sogecable hopes to compensate the weakness of its platform of television, that now contributes a 86% of the total sales of the group, while it finds resources to do against the strong investments of Four, its new channel in open.
With few months in the market, Four contribute 14% of the income, but it represents 22% of the operating expenseses of the group. With a debt superior to the billions of Euros, the box generation turns out key to maintain a so intensive business in investment as the one of the television in open.
During the first semester of the year, Sogecable registered losses of 15.7 million Euros, against the benefit of 2.7 million the same period of the 2005, due to the impact in the accounts of the launching of the Four and expenses by the broadcasting of the World-wide one of Soccer. The net income of the company ascended to 856.53 million Euros, a 10.43% more than in the previous exercise, whereas the operating expenseses increased a 24.5%, up to 744 million Euros.