ABS-CBN net profit soars 6-fold to P1-B

ABS-CBN Broadcasting Corp. reported 500-percent increase in its net income last year to P1.01 billion, from only P166 million in 2002, fueled by a double digit growth in revenues.

Consolidated gross airtime and other broadcasting-related revenues rose 12 percent to P11.06 billion, from only P9.91 billion the previous year with growth coming from airtime revenues.

Consolidated airtime revenues went up 14 percent to P10.86 billion on the back of the strong growth in advertising minutes, as the recovery in advertising spending was sustained last year.

Other broadcasting-related revenues, on the other hand, slipped by 48 percent to P206 million from P395 million due to a drop in SMS or text related revenues. ABS-CBN temporarily suspended the development and promotion for new SMS or text-based products and services.

It’s EBITDA (earnings before interest, taxes, depreciation and amortization) grew 18 percent to P4.29 billion from P3.64 billion, buoyed by management’s efforts to drive revenues, optimize operating efficiencies and closely manage capital spending."

EBITDA reflects the company’s ability to generate cash from its operating business units, cash which can be used for paying off debt and in investing in new projects.