ABS-CBN Posts 23 Percent Rise in Net Income to Php1.9 Billion

PHILIPPINES – Philippine media and entertainment company ABS-CBN reported a 23 percent rise in net income in the first nine months of this year to Php1.9 billion from the same period last year, the company said in a disclosure to the Philippine Stock Exchange.

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The company reported higher third quarter revenues of PhP10.1 billion, 8 percent higher than the revenues generated during the second quarter of this year.

“Given our growth trajectory, we are likely to hit record revenues by year-end, and we should be in a srong position to build on this given that next year is an election year,” said Aldrin M. Cerrado, the company’s chief financial officer.

“With one quarter to go, we are confident that we will succeed in meeting our earnings guidance of PhP2.4 billion for 2015. We have continued to implement measures to control costs and increase efficiencies where possible,” added Cerrado.

According to Kantar Media, the top 10 programs for the first nine months of 2015 for free-to-air television were all produced by ABS-CBN. The company will further boost its audience share once it improves the reception of channel 2 in the Mega Manila area and Central Luzon.

Star Cinema has continued to dominate the local box office, generating close to PhP2 billion in ticket sales for the first nine months of 2015. Star Cinema’s 10th release for the year, “The Love Affair”, has become the group’s highest-grossing film shown overseas.

Ron Valdueza, group CFO and head of Corporate Services Group 2, said, “We have continued to reach our Kapamilyas overseas, not only through ‘The Filipino Channel’ (TFC) and our internationally released movies but through various live events such as ’ASAP in London’, which gathered close to 10,000 Filipinos in SSE Wembley Arena. ABS-CBN Global now touches the lives of over 3 million Filipinos abroad, and this year, our international sales and distribution division has entered new territories such as
Kazakhstan, Colombia, and Thailand.”

“For the first nine months, our TV and Studio operations turned in a very strong performance with a net income of PhP3.0 billion, 39% higher compared to the same period last year, improving its margins to 14.8% from 11.5%,” said Valdueza.

Total assets rose to PhP70.7 billion as of the end September 2015 from PhP67.2 billion as of end last year. The company’s equity base increased to PhP27.9 billion as of the end of September 2015.

Kidzania Manila, which opened its doors to the public on August 7, 2015, at the Fort Bonifacio Global City, exceeded expectations with more than 75,000 visitors since opening day.

More than 40 establishments are in operation, and there will be more coming on stream over the next few months.

ABS-CBN TVplus digital boxes are now in over 800,000 households, and the company expects to breach the 1 million mark by year-end. Initially priced at PhP2,500 per box, the company has brought this down to PhP1,999 through brand alliances with advertising partners.

“This will soon have a positive impact on ratings and will create advertising opportunities in our four additional channels,” said Valdueza. – BusinessNewsAsia.com

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