ABS-CBN net income down 20% to P2.26 billion in 1st 9 months

Rappler.com
ABS-CBN net income down 20% to P2.26 billion in 1st 9 months
But the media conglomerate's net income for the 3rd quarter of the year stands at P1.01 billion, up 38% from the same quarter last year

MANILA, Philippines – Lopez-led media conglomerate ABS-CBN Corporation saw its net income drop by 20% year-on-year through the 1st 9 months of 2017 in the absence of national elections to boost advertising sales.

In a disclosure to the Philippine Stock Exchange on Friday, November 10, ABS-CBN reported a net income of P2.26 billion for the January to September period of the year, compared to the P2.84 billion in the same period last year.

The media conglomerate’s net income for the 3rd quarter of 2017, however, stood at P1.01 billion, up 38% from the same quarter last year which was also not boosted by elections.

“Advertising revenues picked up during the 3rd quarter and we are optimistic that we will be able to sustain the momentum until the end of the year to hit our full-year net income target of between P2.7 billion [and] P3 billion,” said ABS-CBN chief financial officer Aldrin Cerrado in a statement.

Year-to-date, the firm’s consolidated revenue stands at P29.5 billion, with advertising revenue accounting for P15.3 billion, down by 3% from the P15.8 billion net of election-related spending which was registered during the same period last year.

ABS-CBN noted, however, that this was tempered by an 11% increase in consumer sales to P14.2 billion over the same period, driven by demand for ABS-CBN TVplus digital boxes and an increase in Sky Cable’s Direct-to-Home (DTH) and broadband subscription revenues.

For the period, Sky Cable’s revenues grew by 7% to P6.8 billion from P6.4 billion over the same period last year, attributed to the growing number of its broadband and DTH subscribers.

Star Cinema, meanwhile, generated close to P1.5 billion in gross receipts from movies produced from January to September. It highlighted that one of its films, Finally Found Someone, brought in more than P300 million in ticket sales from its Philippine run and international screenings.

Kidzania, ABS-CBN’s educational theme park, earned P324 million in revenues from over 224,000 visitors since the beginning of the year. ABS-CBN said it expects more visitors in the coming months as the holiday season approaches.

The firm also noted that total costs and expenses implemented were flat at P26.8 billion due to cost control measures since 2017 began.

As of end-September, ABS-CBN’s total assets amounted to P72.9 billion, while equity stood at P33 billion. – Rapper.com

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