ABS-CBN’s 9-mo profits more than double on strong ad sales

abs-cbnNEWS.com

Posted at 11/12/2010

MANILA, Philippines - Earnings of ABS-CBN Corp., the country’s largest multimedia conglomerate, more than doubled in the first 9 months of the year, thanks to higher regular advertising revenues.

The Lopez-owned firm reported that its net income for the January to September 2010 surged by 123% to P2.9 billion from P1.3 billion in the same period last year.

Consolidated revenues reached a record level of P24.7 billion, representing a 35% year on year growth. Advertising revenues accounted for the bulk or 68% of the total, while consumer sales contributed the remaining 32%.

Total advertising revenues across all platforms and subsidiaries amounted to P16.9 billion during the 9-month period, P6.2 billion or 58% higher than the P10.7 billion for the same period in 2009.

Advertising revenues from regular advertisers grew by 37% to P14.6 billion, while non-recurring political advertising revenues carried over from the first semester amounted to P2.3 billion.

Total advertising minutes sold by Channel 2 from January to September jumped 46%. Advertising minutes sold to regular advertisers rose 36%, accounting for 93% of total minutes. Election-related advertising in the first semester contributed 7% of total minutes sold.

ABS-CBN Corp. maintained its national audience share and ratings leadership as total-day audience share averaged 41% in the third quarter, with a lead of 7 percentage points over GMA-7, going by Kantar Media figures.

Meanwhile, the company's consumer sales reached P7.8 billion, posting an increase of P160 million or 2% from a year ago, mainly owing to the contributions of Skycable and ABS-CBN Global.

ABS-CBN Global’s revenues rose by 8% year-on-year in US dollar terms but this growth slowed to 3% in peso terms, given the continued appreciation of the local currency.

Skycable’s consolidated revenues, on the other hand, grew 10% in the first 9 months of 2010, powered by a 77% increase in broadband service revenues.

ABS-CBN Corp.'s total expenses went up 21% to P17.4 billion due to higher production costs and general and administrative expenses.

Reported EBITDA hit a record high of P6.9 billion, 33% or P1.7 billion higher than reported EBITDA last year.