MANILA, Philippines – The Lopez family-led ABS-CBN Corporation posted higher earnings in the first quarter of the year on the back of higher ad revenues and consumer sales, the company reported Thursday, May 7.
The company’s net income grew 5.8% to P569 million ($12.74 million) in the first quarter of the year from P538 million ($12.04 million) in the same period in 2014, said ABS-CBN chief financial officer Aldrin Cerrado.
The TV and studio business earnings grew 25.3% to P902 million ($20.19 million) in the first 3 months of the year from P720 million ($16.12 million) in the same period last year.
The net profit of its pay TV business plunged though to 58.5% from P41 million ($917,059.75) to P17 million ($380,655.06).
Also, the net loss of new business including ABS-CBN mobile grew by 57% from P223 million ($4.99 million) to P350 million ($7.83 million).
Cerrado said he is very pleased with the company’s performance in the first quarter.
“Advertising revenue growth has been robust and should accelerate over the coming months,” Cerrado said.
Revenues also inched up by 2.4% to P8.39 billion ($187.91 million) from P8.19 billion ($183.49 million).
Consumer sales also increased by 1.4% to P4.13 billion ($92.37 million) from P4.08 billion ($91.26 million), while ad revenues grew 3.5% to P4.25 billion ($95.05 million) from P4.11 billion ($91.92 million).
Cerrado said the company’s results also reflected its continued focus on increasing efficiencies in its operations, as cost and expenses rose by 2.8% to P7.62 billion ($170.43 million) in the first quarter of 2015 from P7.41 billion ($165.83 million) in the same period last year. This is due to reduced production costs by 3.4% to P2.65 billion ($59.32 million) from P2.74 billion ($61.34 million).
ABS-CBN’s total assets rose to P 68.3 billion ($1.53 billion) from P 67.2 billion ($1.50 billion) at the end 2014. Total equity stood at P 26.5 billion ($593.44 million) by end of the previous quarter.
ABS-CBN Group Chief Financial Officer Ron Valdueza said the company would continue to invest heavily as part of its shift to the digital TV.
The company already earmarked P8.5 billion ($190.35 million) for its capital expenditures this year.
About P3.15 billion ($70.54 million) would go to pay TV and digital initiative. Around P4.1 billion ($91.81 million) would be spent for maintenance and other expenses. A total of P1.2 billion ($26.87 million) was allotted for program rights.
“We have finally begun to move the country into the digital TV era. ABS-CBN TV Plus, which we launched in mid-February, is now being enjoyed by more than 300,000 households in Mega Manila, North Luzon and Cebu,” Valdueza said.
ABS-CBN TV Plus gives viewers digital signal on Channel 2 and ABS-CBN Sports + Action, plus 4 exclusive channels namely DZMM Teleradyo; Knowledge Channel; Yey; and Cinemo – a 24-hour movie channel.
Valdueza said that many households were able to watch the recent Pacquiao-Mayweather bout live through the pay-per-view option on their TV Plus boxes.
“We should reach a million households by yearend and expand our coverage to the Visayas-Mindanao area,” he added. – Rappler.com
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