ABS-CBN’s net income jumps 50% on strong ad revenues

MANILA, Philippines – Driven by strong advertising revenues, ABS-CBN Corporation is optimistic in reaching its earnings guidance of about P3.5 billion in 2016, after it saw its net income surge by 50% during the first 9 months of the year.

“We are confident that we will meet our earnings guidance of between P3.2 billion and P3.5 billion for 2016,” ABS-CBN chief financial officer (CFO) Aldrin Cerrado announced on Friday, October 28.

Boosted by “election spending and continued leadership in ratings of our primetime shows,” Cerrado said ABS-CBN’s net income for the January-September 2016 period went up to P2.85 billion, from P1.89 billion in the same period a year ago.

Its consolidated revenue, meanwhile, increased by 12% to P31.1 billion for the first 9 months of 2016, from P27.76 billion in 2015.

Its costs and expenses also went up by 8% to P26.97 billion in the January-September period this year, from 2015’s P24.98 billion.

Cerrado said ABS-CBN has an ongoing program to manage costs more efficiently. (READ: More political ads in 3rd presidential debate of ABS-CBN)

“We have been successful in controlling production costs and have been able to reduce expenses on a per program basis compared to last year,” the ABS-CBN official said.

The Lopez-led firm sold 1.6 million ABS-CBN TVplus boxes as of the end of September. 

Cerrado said ABS-CBN’s total assets also rose to P74.7 billion as of the end September 2016, from P70.4 billion as of end last year. 

Consumer business ‘strong’

ABS-CBN said its ventures outside TV and studio business have exhibited strong performances.  (READ: #PHVote: Businesses winning, losing in 2016 elections)

The company’s consumer business is generated from 3 types of businesses, namely: subscription, ticketed experiences, and durable goods.

Ron Valdueza, ABS-CBN’s Group CFO said: “Sky Cable has improved its profitability, assisted by cost control measures and the continued steep increase in its broadband subscriber base.”

Valdueza said the launch of Sky’s direct-to-home pay TV service nationwide under the brand SkyDirect last May has brought in over 70,000 subscribers. 

“By year-end, Sky’s total Pay TV and Broadband subscriber base should breach the 1 million mark,” he said. 

ABS-CBN said that its educational theme park Kidzania has welcomed over 200,000 visitors since the beginning of the year, while the O Shopping Channel has generated P612 million in sales of various products for the first nine months of 2016.

“With all these achievements, ABS-CBN is poised to deliver record earnings performance this year,” said Valdueza. – Rappler.com