ABS-CBN profit shoots up 77% to P739M in H1

Media giant ABS-CBN Broadcasting Corp. said its net profit jumped 77 percent to P739 million in the first half of the year on the back of higher advertising revenues and contribution from its subscription-based business, as ratings improved particularly on the primetime and noontime block.

The Lopez-owned company told the Philippine Stock Exchange that for the second quarter alone, its a net income rose 53.5 percent to P459 million from P299 million the previous year.

ABS-CBN chief financial officer Miguel Navarrete said gross revenues grew 12 percent to P9.2 billion as the network’s audience share continued to improve in Mega Manila. For the period April to June this year, ABS-CBN registered revenues of P5.017 billion.

Earnings before interest, taxes, depreciation and amortization (EBITDA) went up 26 percent to P2.5 billion, representing an EBITDA margin of 28 percent from 25 percent in the first half of 2006.

Navarrete also pointed out that ABS-CBN still lorded it over in both audience share and ratings nationwide, with an advantage of 10 and four percentage points, respectively, over its perennial rival GMA Network Inc.

Based on the latest survey by AGB Nielsen, ABS-CBN had a nationwide audience share and ratings of 46 percent and 18 percent, respectively, as against GMA’s 36-percent market share and ratings of 14 percent.

He said two-thirds of the company’s advertising revenues now come from the primetime block while 17 percent from the noontime block.

Navarrete said the network is confident of sustaining its income growth this year as advertising revenues continue to grow by double digits.

He said gross airtime revenues increased 20 percent to P6.2 billion while combined sale of services posted a healthy 11-percent increase to P2.7 billion, largely due to the strong performance of ABS-CBN Global and ABS-CBN Films.

During the period under review, ABS-CBN Global’s subscriber base increased by 20 percent, equivalent to 1.6 million viewers worldwide.

Navarrete said ABS-CBN Films also did well, registering a 60-percent jump in revenues due to the showing of five blockbuster movies.

Navarette said the company was able to contain costs, with net expenses rising by only five percent to P7.9 billion.

He said the network’s capital expenditure spending will likely increase in the third quarter or fourth quarter this year as ABS-CBN launches new programs.

Navarrete said the network will launch digital TV in the first quarter of next year which is seen to resolve its perennial problem of “weak signals” in the provinces but will also be a new platform for ABS-CBN to expand its advertising base.

With the installation of additional transmitters, households in the pilot areas will be getting more free-TV channels or programs owned by ABS-CBN.

Navarrete also disclosed that ABS-CBN will soon acquire majority control of Cable TV Network Central CATV.