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Thursday, March 28, 2024

ABS-CBN’s profit rises 34%

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ABS-CBN Corp. said Thursday net income rose 34 percent in the first quarter of the year, boosted by higher advertising revenues from the 2016 national election and regular advertisers. 

The country’s leading media and entertainment company posted a net profit of P761 million in the January-to-March period from P569 million in the same period last year. 

The growth was driven by strong performance in the corporation’s television and studio business, where advertising revenues grew 30 percent year-on-year.

“As expected, we saw a big jump in advertising revenues driven by a combination of an improvement in our ratings and an increase in airtime placements from regular advertisers and from candidates running for office in the May elections,” ABS-CBN chief financial officer Aldrin Cerrado said.

The company posted a consolidated revenue of P9.79 billion, up 18 percent from last year’s P8.33 billion. 

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Advertising revenues reached P5.58 billion in the first quarter, up 31 percent from P4.26 billion last year, wile consumer sales rose 3 percent to P4.21 billion from P4.07 billion last year. 

ABS-CBN, meanwhile, booked P781 million in revenues from election-related spending in the first quarter of the year. Revenues from election campaign amounted to P2.9 billion as of May 8. 

“We are still very confident to meet our profit guidance of P3.2 billion to P3.5 billion this year,” Cerrado said. 

Cerrado said the company planned to further boost its audience share with the better reception of Channel 2 in the Mega Manila area and Central Luzon through the distribution of its ABS-CBN TV Plus boxes.

Data from Kantar Media showed ABS-CBN audience share nationwide during the period reached 44 percent, higher than GMA Network’s 35 percent and TV5’s 7 precent. 

ABS-CBN posted a 31 percent audience share in Mega Manila and 35 percent in Metro Manila. 

The company has sold over 1.2 million ABS-CBN TV Plus boxes to date. ABS-CBN’s digital TV coverage includes Benguet, Pangasinan, Tarlac, Nueva Ecija, Pampanga, Bulacan, Metro Manila, Rizal, Cavite, Laguna, Metro Cebu and Bacolod. 

“We are confident that this will be a banner year in terms of revenues and earnings. Furthermore, we have undertaken various initiatives to diversify our revenue base beyond advertising,” ABS-CBN Group chief finance officer Ron Valdueza said.

ABS-CBN has programmed P8.8 billion in capital expenditure this year, including P1.1 billion in the first quarter. The company is spending the money to acquire program rights, pay television business and digital initiatives, maintenance and others.

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