ABS-CBN 9-month net income for 2016 up by 50%

MANILA, Philippines - ABS-CBN Corporation, the country’s leading media and entertainment company, reported a consolidated revenue of P31.1 billion for the first nine months of 2016, bringing its net income to PHP 2.85 billion, 50% higher compared to the same period last year.

ABS-CBN logo

ABS-CBN chief financial officer Aldrin Cerrado attributed the growth to strong advertising revenues during the first nine months, which were boosted by election-related spending and the continued leadership in ratings of our primetime shows.

“Our ratings performance is key since we have adopted the cost per individual rating point pricing (CPIRP) scheme,” said Cerrado. “We are confident that we will meet our earnings guidance of between PHP 3.2 to 3.5 billion for 2016.”

Cerrado also said ABS-CBN has an ongoing program to manage costs more efficiently.

“We have been successful in controlling production costs and have been able to reduce expenses on a per program basis compared to last year,” he explained.

According to Kantar Media, the top 10 programs for the first nine months of 2016 for free-to-air television nationwide covering both urban and rural homes were all produced by ABS-CBN with “FPJ’s Ang Probinsyano” consistently ranking number 1. The company’s Digital Terrestrial Television or DTT helped boost audience share with over 1.6 million ABS-CBN TVplus boxes sold as of the end of September.

Kantar Media uses a nationwide panel size of 2,610 urban and rural homes that represent 100% of the total Philippine TV viewing population, while the other ratings data supplier AGB Nielsen reportedly has 2,000 homes based in urban areas that represent only 57% of the Philippine TV viewing population.

Online, viewership of ABS-CBN content also remain strong with ABS-CBN’s video-on-demand service iWant TV – the leading OTT platform in the Philippines – continuing to garner millions of page views very month.

Total assets rose to P74.7 billion as of the end September 2016 from P70.4 billion as of end last year. The company’s equity base increased to P30.8 billion as of the end of September 2016.

ABS-CBN’s ventures outside its TV and Studio business have exhibited strong performances as well. The company’s consumer business is generated from three types of businesses, namely subscription, ticketed experiences, and durable goods.

Ron Valdueza, ABS-CBN’s Group CFO said, “Sky Cable has improved its profitability, assisted by cost control measures and the continued steep increase in its broadband subscriber base.”

Valdueza said the launch of Sky’s direct-to-home pay TV service nationwide under the brand SkyDirect last May has brought in over 70,000 subscribers.

“By year-end, Sky’s total Pay TV and Broadband subscriber base should breach the 1 million mark,” he said.

Consistent with the company’s vision of touching the lives of Kapamilyas overseas and finding new ways outside TV viewing that would allow its customers’ experiences to be more immersive and interactive, ABS-CBN Global staged “ASAP New York” at the Barclay’s Center. Around 9,000 Kapamilyas were entertained by over 50 artists during the 4-hour show. The Filipino Channel (TFC) is now being watched by over 3 million Filipinos abroad.

Kidzania, the company’s educational theme park, has welcomed over 200,000 visitors since the beginning of the year, while the O Shopping Channel has generated P612 million in sales of various products for the first nine months of 2016.

“With all these achievements, ABS-CBN is poised to deliver record earnings performance this year,” said Valdueza.

ABS-CBN is home to the nation’s top-rating TV programs, box-office films, and best-selling books and music. With the ability to harness the latest in technology and innovation, the company is rapidly transitioning into an agile digital company with the biggest online presence among all media companies, and a growing list of digital properties. ABS-CBN was also first in the country to offer content online and on mobile, and even pioneered digital television in the nation.

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