ABS-CBN earnings fall on lack of election spending
MANILA, Philippines – Earnings of Lopez-owned media conglomerate ABS-CBN Corporation fell 23% in the first half of the year due to the absence of election-related advertisements.
The company, however, is still optimistic it can hit its target earnings of P2 billion ($45.54 million*) this year.
In a briefing Wednesday, August 13, ABS-CBN chief financial officer Aldrin Cerrado reported the company’s net income amounted to P995 million ($22.66 million) in the first 6 months, against P1.29 billion ($29.37 million) in the same period last year.
The company’s revenues, he said, dropped 4.7% to P16.4 billion ($373.23 million) from P17.2 billion ($391.40 million), while cost and expenses were steady at P15.09 billion ($343.38 million).
Taking out P1.1 billion ($25.03 million) in non-recurring election-related ads the company booked last year, Cerrado said its net income would have jumped 44%.
Excluding election-related ads, he explained that revenues for the first half would have increased 3% due to the strong performance of ABS-CBN films locally and internationally, and growth of unit SkyCable Corporation.
“During election it is different, the regular advertisers advertise more because of consumer spending. Our recurring business is doing very well,” Cerrado said.
ABS-CBN Group chief financial officer Ron Valdueza is confident that the company will deliver the P2 billion ($45.54 million) earnings it promised for this year. “The question right now is if we will exceed.”
He said the company usually delivers strong numbers in the third quarter.
“We are looking forward to sustaining our performance throughout the second half of the year. The results of our initiatives on both the revenue and expense side have been positive, and we should be able to deliver a marked improvement in our margins over the coming years,” he added.
Valdueza said they were also banking on the network’s strong ratings.
He said ABS-CBN still leads in terms of nationwide audience share, with 44%; followed by GMA, with 33%; and TV5, with 10%.
The ABS-CBN Group has committed to spend P6.6 billion ($150.30 million) for its capital expenditures this year. – with a report from Mick Basa / Rappler.com
*($1 = P43.91)