January 07, 2014

GLO unit plans to offer pay-TV service

News portal interaksyon.com today reported that Altimax Broadcasting Co In has asked the regulator for a permit to operate pay-TV services in key urban areas nationwide, including Metro Manila, Cebu City, Davao City, Iloilo City, Cagayan de Oro City and five other cities. Altimax is controlled by Bethlehem Holdings Inc, a unit of Globe Telecom.

Our Take: We take note that Ayala Land Inc (ALI, Buy) has development projects or significant land bank in these cities. The emerging residential communities in these areas are logical markets for the pay-TV service if and when Altimax is granted the permit to operate. Operating a cable TV service should also open possibilities for new products for Globe Telecom such as cable broadband access.

This clearly demonstrates the positive results arising from the more aggressive stance of management within Ayala Corp (AC, Buy) and its units, enabling AC to create better synergies within its portfolio.– WealthSec