ABS-CBN 9-mo earnings fall on lack of one-time gain

NET INCOME. ABS-CBN's recurring income was boosted by strong advertising revenue and consumer sales but overall, net income dropped 31%. Photo courtesy of ABS-CBN.

MANILA, Philippines - The absence of a one-time gain pulled down the earnings of media conglomerate ABS-CBN Corp. of the Lopez group in the first 9 months of 2012.

In a statement to the Philippine Stock Exchange on Thursday, November 15, ABS-CBN said its net income in January to September fell 31% to P1.55 billion from P2.24 billion last year.

Removing a one-time gain of P674 million from the sale of a stake in cable unit Skycable last year, ABS-CBN's core net income grew 10%.

The company saw a 13% increase in its 9-month consolidated revenues to P24 billion, boosted by higher advertising revenues and consumer sales.

Advertising revenues, which accounted for 60% of consolidated revenues, went up 8% to P14.5 billion from P13.4 billion last year.

CAPEX. ABS-CBN has already spent P1 billion of the P3-5 billion it has allocated for capital expenditures in digital infrastructure over the next 3 to 5 years. Photo courtesy of ABS-CBN.

On the other hand, consumer sales, which made up the balance of 40%, jumped 21% to P9.52 billion from P7.9 billion.

Higher production costs and operating expenses weighed on revenue growth, however.

OPERATING EXPENSES. ABS-CBN experienced a 10% increase in production expenditure driven by the cost of new local shows. Photo courtesy of ABS-CBN.

ABS-CBN's production costs grew 10% in the first 9 months from a year ago to P7.63 billion, while operating expenses rose 14% to P19.44 billion. - Rappler.com