ABS-CBN reports 7%-hike in Q1 net earnings

MANILA, Philippines – Multimedia giant ABS-CBN Corporation has reported a 7% increase in net income in the first quarter of 2014 compared to the same period in 2013.

ABS-CBN chief financial officer Aldrin Cerrado said the company’s net income amounted to P538 million from January to March in 2014 – P35 million higher compared to its P503 million earnings in the same period in 2013. 

“We are off to a good start in 2014. I am particularly pleased that we were able to grow our net income by 7% considering that last year’s results included election-related revenues,” Cerrado said.

He said the company’s revenues rose by 3.4% to P8.2 billion from P7.9 billion in the previous year, due to the strong performance of its film business, global distribution, and pay-TV networks.

Consumer sales jumped 18.2% to P4.2 billion from P3.56 billion during the comparative period,  while ad revenues went down by 8.9% to P3.98 billion from P4.37 billion.

The share of consumer sales to total revenues increased to 51% from 45%, while the share of ad revenues declined to 49% from 55%.

Revenues from its global operations increased by  22.1% to P1.51 billion in the first quarter, due to the international release of Star Cinema films and successful events such as ASAP Dubai.

Revenues of the broadcast business increased by 0.6% to P4.18 billion, while revenues from films and music jumped by 25.2% to P660 million.

Revenues of SkyCable Corporation grew 8.3% to P1.84 billion, from P1.7 billion with the cable business growing by 5% and its broadband business by 29%.

The company also reported that the growth of costs and expenses of ABS-CBN went up by 2.8% to P7.41 billion from P7.21 billion.

ABS-CBN Corporate Services Group 2 and Group chief financial officer Ronaldo Valdueza said company is expected to deliver a “strong” financial performance in 2014.

 “I am confident that our company will deliver strong results this year. We are undertaking various initiatives to generate revenues beyond advertising, as well as control our costs, and I believe we will reap the rewards from these efforts in the coming years,” Valdueza said.

 He said the company’s O Shopping channel would likely break even this year while the educational theme park KidZania is slated to open at Fort Bonifacio, Global City in the first quarter of 2015. – Rappler.com