As election nears, ABS-CBN net income surges in 2015
MANILA, Philippines – As the 2016 presidential election nears, ABS-CBN Corporation exceeded its net income and revenue targets in 2015, thanks to its new ad pricing scheme.
The Lopez-led media and entertainment company saw its net income surge by 23% to P2.55 billion ($54.90 million) in 2015, and revenue increase by 11% to P38.28 billion ($824.11 million) last year.
"We are happy to report that we exceeded our revenue and net income targets for 2015," ABS-CBN chief finance officer Aldrin Cerrado said in a statement, adding that his company "received a further boost" after it "adopted a new pricing scheme in May of last year – from a fixed cost per spot, to a cost per individual rating point system."
This scheme is called cost per individual rating point (CPIRP) pricing mode, wherein rates vary each day based on the actual number of people reached by a TV show.
The company CFO also said that popular television programs launched in 2015 helped boost ABS-CBN's earnings. (READ: GMA Network breaches P2B net income target for 2015)
"Our TV production group's continued success in creating major hits such as Pangako Sa 'Yo, On the Wings of Love, and FPJ's Ang Probinsyano generated significant advertising revenues," Cerrado added.
Higher assets, equity
ABS-CBN's total assets rose to P70.42 billion ($1.52 billion) in 2015, from P67.24 billion ($1.45 billion) in the previous year, while its equity base rose to P28.71 billion ($618.08 million) from P26.87 billion ($578.47 million).
The company said its unit Star Cinema released hits such as Crazy Beautiful You, The Love Affair, and A Second Chance, which generated more than a billion pesos in ticket sales locally and internationally. (READ: ABS-CBN names new president and CEO)
Ron Valdueza, ABS-CBN Group CFO, said, "We are confident that our company will deliver even stronger results this year. Our digital TV initiative has done very well, recently breaching the one-million mark in terms of sales of ABS-CBN TVplus boxes."
"SkyCable increased its broadband subscriber count by over 40% and has maintained a healthy average revenue per user of about P1,100. It recently obtained a license to operate direct-to-home service, which will expand its reach around the country. Sky is expected to roll out its DTH service within the year," added Valdueza. – Rappler.com
$1 = P46.45