ABS-CBN 9-mo earnings fall on lack of one-time gain
MANILA, Philippines - The absence of a one-time gain pulled down the earnings of media conglomerate ABS-CBN Corp. of the Lopez group in the first 9 months of 2012.
In a statement to the Philippine Stock Exchange on Thursday, November 15, ABS-CBN said its net income in January to September fell 31% to P1.55 billion from P2.24 billion last year.
Removing a one-time gain of P674 million from the sale of a stake in cable unit Skycable last year, ABS-CBN's core net income grew 10%.
The company saw a 13% increase in its 9-month consolidated revenues to P24 billion, boosted by higher advertising revenues and consumer sales.
Advertising revenues, which accounted for 60% of consolidated revenues, went up 8% to P14.5 billion from P13.4 billion last year.
On the other hand, consumer sales, which made up the balance of 40%, jumped 21% to P9.52 billion from P7.9 billion.
Higher production costs and operating expenses weighed on revenue growth, however.
ABS-CBN's production costs grew 10% in the first 9 months from a year ago to P7.63 billion, while operating expenses rose 14% to P19.44 billion. - Rappler.com