Sky Perfect Communications Inc. said Thursday it may eliminate all of its accumulated losses, which stand at some 120 billion yen, by the end of March 2004.
The firm plans to accomplish this by reducing its capital and tapping into part of its additional paid-in capital.
The operator of satellite broadcaster Sky PerfecTV said it may also move its stocks from the Mothers market, a bourse for startups housed at the Tokyo Stock Exchange, on to the first section of the TSE.
The company said it has yet to decide when to apply for this listing change.
The firm will start generating profits at the group pretax level during fiscal 2003, company sources said.
Sky Perfect has been under pressure due to the heavy costs of acquiring the broadcasting rights for last summer's World Cup soccer finals. This strategy allowed Sky Perfect customers to watch the games for free.
But now that the number of individual subscribers to its services has topped the break-even mark of 3 million, it is likely that the firm will generate a group pretax profit for the current business year.