ABS-CBN profit nearly doubles to P1.1B

Media conglomerate ABS-CBN Broadcasting Corp. reported a 99.6-percent jump in its net income for the first nine months of the year to P1.1 billion, mainly driven by the robust growth in advertising revenues, higher contribution from its subscriber-based business and the continued improvement in viewer ratings.

With the vastly improved profit performance, ABS-CBN has already exceeded its full-year net income last year of P740 million. 

Due to its strong financial performance, ABS-CBN said it expects its net earnings to reach P1.2 billion to P1.4 billion by yearend.

In the third quarter alone, net profit increased more than two-fold to P365 million from only P134 million in the same period a year earlier.

ABS-CBN vice-president and chief finance officer Miguel Navarrete said consolidated revenues rose 14 percent to P14.5 billion on the back of a 23-percent growth in airtime revenues. Advertising minutes increased 15 percent year-on-year.

Airtime revenues amounted to P9.9 billion as the network continued to lord it over in both audience share and ratings, enjoying an advantage of 11 and four percentage points, respectively.

Revenues for the July to September period rose 18.3 percent to P 5.31 billion compared with  P4.49 billion the previous level. 

Earnings before interest, taxes, depreciation and amortization (EBITDA), on the other hand, grew 31 percent to P3.97 billion for the nine months ending September, equivalent to an EBITDA margin of 27 percent from 24 percent in 2006.

During the period under review, international unit ABS-CBN Global recorded an 18-percent increase in subscriber base, translating to a 23-percent average annual growth over six years.

Total net expenses increased by only seven percent to P12.5 billion due to continued cost-cutting measures implemented by the company to further strengthen its balance sheet.