Parasat Cable TV Inc., the forerunner of cable TV in Mindanao based in Cagayan de Oro City, recently closed a deal with Yujuico family-owned CYO International Inc.
Parasat, led by its President and Chief Executive Officer Engr. Elpidio M. Paras, struck a deal to purchase CYO’s 98-channel all-digital Challenger Platform, which will be used in transitioning from an analog to digital TV service.
Parasat Cable TV sells cable TV services to the entire city and two municipalities. It also has branches in the cities of Malaybalay and San Carlos in Negros Occidental. It has also formed partnerships with other cable operators in Gingoog City and the municipalities of Balingasag, Don Carlos and Valencia. It is continuously expanding its coverage to the east and west sides of Misamis Oriental.
Parasat’s latest report to the SEC said the cable TV provider increased revenue income by just above a percent to P32.17 million in 2007 from nearly P32 million in 2006. Still, its net income rose by 97 percent to nearly P0.8 million in 2007 from P0.4 million a year before.
Parasat sells services at P365 a month up to P675 a month for access to up to 74 channels. The company said it plans to digitize transmission soon.
CYO will import the equipment from San Carlos, California-based Transparent Video Systems (TVS) Inc., which announced the deal in a statement released last week, TVS said it selected CYO as its distributor to reach “a market that is severely underserved due to the high cost of competitive equipment.”
“With the help and support of CYO International, 100’s of the small- to medium-sized cable operators will have the ability to compete more aggressively,” TVS said.
TVS added that while the 98 units is only CYO’s initial order, these will be the first deployment of TVS equipment in the Philippines.
CYO, which sells community access TV (CATV) equipment and satellite dishes, posted a 380-percent increase in sales two years ago to P29 million from just P6 million in 2005.
It also posted its first profit in 2007 from subsequent losses in 2005 and 2004, according to documents it submitted to the Securities and Exchange Commission (SEC).
Home to 553,966 people, Cagayan de Oro City, Misamis Oriental is also considered the shopping capital of Northern Mindanao.
CYO is majority owned by its president Cynthia Y. Yujuico which owns 18,750 of the company’s total 120,000 shares.
With capital stock of P3.75 million, CYO has a total workforce of 28 people (9 officers and 19 rank-and-file employees).
Parasat’s success enabled the company to venture into the restaurant business (PJoe’s Diner), coffee shop (Coffee Works), internet cafe (Webworks), salon and spa (Vanity Works and Ban Sabai), call center/BPO ( Arriba Telecontact and Paramedix Inc.) and English proficiency training (Versatel), among others.