MANILA, Philippines – ABS-CBN Corporation almost doubled its net income in the first half of the year as a record result of stronger regular and election-related advertising.
The listed media and entertainment firm said its net income during the first 6 months of 2016 went up by 76% to P2.1 billion, from P1.2 billion a year ago. (READ: More political ads in 3rd presidential debate of ABS-CBN)
“The improvement in our ratings, coupled with the newly implemented cost per individual rating point pricing (CPIRP) scheme, contributed to the increase in our advertising revenues,” ABS-CBN chief finance officer Aldrin Cerrado said in a statement.
CPIRP is where rates vary each day based on the actual number of people reached by a TV show. ABS-CBN implemented this new advertising pricing scheme last year.
The Lopez-led company said its consolidated revenue went up by 19% to P20.9 billion in the first half of 2016, from P17.67 billion a year ago. (READ: #PHVote: Businesses winning, losing in 2016 elections)
As of end-June, ABS-CBN sold over 1.3 million digital terrestrial television (DTT) boxes.
Meanwhile, its broadband business Sky Cable Corporation saw its subscriber base increase by 47% to over 169,000 since June last year.
Its consumer business O Shopping Channel “is now generating over P2.2 million in daily sales,” ABS-CBN Group chief finance officer Ron Valdueza said.
Valdueza added that ABS-CBN is “confident” that it will hit its profit guidance of P3.2 billion to P3.5 billion for 2016.
“We recognize that the industry we are operating in is changing rapidly and we continue to make significant investments towards digital transformation and innovation,” the network executive said.
With these developments, ABS-CBN’s total assets rose to P72.5 billion in the first half of the year, a 3% increase from last year. – Rappler.com