ABS-CBN Corp. said Thursday net income in 2018 fell 40 percent to P1.9 billion in 2018 from P3.16 billion in 2017 due to weak advertising sales.
Advertising revenues decreased 3.4 percent to P20.38 billion from P21.09 billion in 2017 on fewer advertising placements.
Consumer sales rose just 0.8 percent to P19.74 billion from P19.60 billion, mainly resulting from a 26-percent increase in ABS-CBN TVPlus boxes sold year-on-year.
Direct costs and expenses amounted to P37.94 billion in 2018, higher by 4.7 percent from P36.57 billion in 2017.
Production cost increased 4.3 percent to P12.34 billion in 2018 from P11.83 billion in 2017.
“The movement was attributable to separation costs of closing down certain regional stations of the company,” ABS-CBN said.
Revenue from international business decreased 4.6 percent.
“The decrease in international business was attributable to Global’s cessation of its money remittance and cargo business which reduced its revenues by P159 million,” ABS-CBN said.
Global’s cable subscription revenues declined 7 percent.
ABS-CBN TVPlus contributed significant increase in revenues for the entire year with 2.5 million boxes sold, up 26.3 percent or 529,000 additional boxes sold in comparison to 2017.
Sky Cable’s revenue decreased 2.1 percent. The decline in Sky Cable’s performance was triggered by the declined in cable subscriber count by 69,000.
In total, subscriber count of Sky increased by 489,000, significantly attributable to direct-to-home subscribers. Darwin G. Amojelar