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MANILA, Philippines – Media conglomerate ABS-CBN Corporation remains confident that it would hit its projected P2-billion ($44.55 million*) yearend revenue target amid a continuing decline in earnings.
ABS-CBN’s chief financial officer Aldrin M. Cerrado said the strong performance of its local and international pay television will make up for the absence of election-related advertisements.
“I remain confident that we will meet our full-year financial targets,” Cerrado told reporters at the sidelines of the company’s analyst briefing on Tuesday, November 11.
From January to September, the Lopez-owned firm booked a net income loss at negative 13.9% from P216 million ($4.81 million) in 2013 to P186 million ($4.14 million) in 2014.
ABS-CBN operates 3 business segments: TV and studio (free to air channel ABS-CBN, The Filipino Channel, Star Cinema, Creative Programs Inc, and ABS-CBN Sports+Action); pay TV (Sky Cable and Destiny Cable); and new businesses (ABS-CBN mobile, Shopping, Kidzania, and Digital TV).
Its core business – TV and studio production – is the lone gainer this year at P2.19 billion ($48.79 million) from P1.77 billion ($39.36 million) in 2013.
Sky Cable, which operates under the network’s pay TV business segment, reported revenue increase of 12.2% from P5.15 billion ($114.74 million) in the previous year to P5.78 billion in the first 3 quarters of 2014.
New ventures, including ABS-CBN mobile and educational theme park Kidzania which will open in 2015, meanwhile, booked a -28% growth in revenues at P288 million ($6.42 million) this year from P400 million ($8.91 million) in 2013.
ABS-CBN recorded P25.07 billion ($558.46 million) of total revenues, a 1.3% decline when compared to its 2013 earnings of P25.38 billion ($565.45 million) which included sales from election campaign advertisements.
Removing election-related advertisements in the same period last year, however, would show an uptick in ABS-CBN’s balance sheet in 2014: from P24.10 billion ($536.88 million) in 2013 to P25.06 billion ($557.20 million) this year.
Cerrado said the company will also rely on advertising revenues which, is eyed to grow from 5% to 7%.
“You will see a lot of new platforms that can deliver a content that could have to get some advertising revenue components, digital space – those are the things that are possible,” Cerrado said.
This year, ABS-CBN spent P1.66 billion ($37.07 million) on digital TV and maintenance; P2.62 billion ($58.43 million) for pay TV; and P1.04 billion ($23.26 million) for program rights out of its P6.62 billion ($147.36 million).
The Lopez-led company is yet to finalize the figures for next year’s capital expenditures (CAPEX).
ABS-CBN’s trading price at the Philippine Stock Exchange on Tuesday closed at P45.80 ($1.02) per share, only P0.20 ($0.004) less from its 52-week high of P46 ($1.02) per share. It opened with a trading price at P44.80 ($1.00) per share.
The network continues to dominate audience shares at 44% total daily viewership, followed by GMA at 34%, TV at 10%, according to Kantar Media’s January-September 2014 survey. – Rappler.com
*$1=P44.80
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