ABS-CBN net income plunges 64% to P481.96M in first nine months

Network giant ABS-CBN Broadcasting Corp. posted a net income of P481.96 million in the period January to September this year, down by 64 percent from the P1.34 billion reported in the same period last year in 2001 due to the absence of government and political advertisements.

ABS-CBN attributed the decline in its net income to lower airtime revenues, coupled with higher depreciation and interest expense as the company discontinued capitalizing interest from loans used to finance the new broadcast complex.

Based on financial statements filed with the Securities and Exchange Commission, net airtime revenues declined 11 percent to P5.42 billion from P6.09 billion. Consolidated net sales, likewise, dropped by four percent to P7.63 billion from P7.98 billion.

The company reported a decline in its net income and revenues even as advertising minutes improved in the third quarter by nine percent from the second quarter.

For the third quarter alone, profits of ABS-CBN fell to P274.14 million or a decrease of 37 percent from the previous level of P435.52 million. Total revenues, on the other hand, went down by three percent to P2.93 billion.

Operating income went down by 51 percent to P1.1 billion as operating expenses increased 13 percent to P6.6 billion. The growth in expenses was due mainly to depreciation costs which increased 46 percent to P1.1 billion from the depreciation of the Eugenio Lopez Jr. Communications Center (ELJCC), the company’s new broadcast complex.

While keeping production costs relatively falt, ABS-CBN said it continued to dominate the industry, attaining an average audience share of 45 percent and ratings of 18 percent, higher than all free-to-air competitors combined during the first nine months of the year.

The company’s perennial competitor, GMA Network Inc., on the other hand, has registered an improvement in its revenues for the period January to September this year despite the prevailing slump in the industry.

GMA said its gross revenues jumped 61 percent to P473 million from only P294 million a year ago. GMA chairman and president Felipe Gozon said he expects full-year revenues to reach P3.54 billion or 17 percent higher than the year ago’s P3.02 billion.

Revenues came from TV sales which contributed P451 million in revenues or a 69 percent increase from P267 million.

Radio revenues, on the other hand, declined by P5 million during the period under review.

Gozon said statistics showed that GMA’s shows have already surpassed the ratings of ABS-CBN shows in the morning and afternoon slots. – With Marianne Go