ABS-CBN posts Jan-June income of P927-M, down 45%

Rappler.com

This is AI generated summarization, which may have errors. For context, always refer to the full article.

Higher production costs and modest advertising revenues cut the consolidated net income of the country's largest media group, ABS-CBN Corp., by 45% in the first 6 months

LOWER. Profits for the 1st half of 2012 continue to erode. This and other graphics below were taken from the August 13 press and analysts' briefing materials.

MANILA, Philippines – Higher production costs and modest advertising revenues cut the consolidated net income of the country’s largest media group, ABS-CBN Corp., by 45% in the first 6 months. 

In a statement on Monday, August 13, it reported consolidated profits of P927 million during the period from P1.677 billion a year ago.

Even when the one-time gain of P674 million in realized gains from the sale of a stake in cable unit Skycable in March 2011 is excluded, the recurring net income of the group still showed an 8% decrease.

The group has been reporting dismal financial performance. Its consolidated and recurring net incomes in the first quarter respectively showed 69% decrease and paltry 1% gain. In 2011, it incurred respective 56% and 25% drops.

Revenues: up 9%

ABS-CBN reported a 9% increase in its 6-month total revenues of P15.3 billion from key sources: advertising and consumer sales, which include subscriptions to ABS-CBN’s international channels..



Advertising revenues reached P9.2 billion, up 5%, while consumer sales hit P6.1 billion, up 17%.

Sky Cable contributed P2.5 billion in revenues, reflecting a 22% increase. The acquisition of former rival Destiny Cable partly brought about this double-digit growth.

Meantime, revenues from ABS-CBN Global was flat with a 1% increase in total viewers compared to the previous year.

Subscriber growth in Canada showed a double-digit growth, while the rest reflected single-digits. Subscriber numbers in Japan and Europe declined.
 
Expenses: up 12%

Overall costs increased faster than the modest top-line growth.



The group spent a total of P12.5 billion, reflecting a 12% increase that was due to higher production costs, cost of sales and services, and general and administrative expenses.

Of this, P2.4 billion was spent for capital expenditure and film and program rights acquisition in the first 6 months – 14% higher than the level of spending for the same period in 2011.

Its unit ABS-CBN Film Productions, Inc. released 8 films during the period. Of these, 4 were blockbusters.

Enteng ng Ina Mo, Segunda Mano, Unofficially Yours and Kimmy Dora and the Temple of Kiyeme earned over P100 million in box office receipts, ABS-CBN reported.



One-time gain

The parent firm realized P674 million from the sale of Philippine Depository Receipts (PDRs) of cable unit Skycable in March 2011.

That was when the Lopez group, which controls Skycable, gained P3.9 billion when it sold a non-voting 40% stake and convertible bonds to STT Communications Ltd, a unit of Singapore’s Temasek Holdings.

PDRs are equity instruments that transfer economic rights over an asset, such as dividends, without transferring voting interest. – Rappler.com

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Loading
Download the Rappler App!