Media conglomerate ABS-CBN Broadcasting Corp. is merging all its film production units under a single company.
To be merged are ABS-CBN Film Productions Inc. and Sky Films with the former as the surviving corporation.
Sky Films was formed on Dec. 29, 2000 to acquire rights for distribution and public exhibition of foreign films through movie theaters and other venues such as free TV, cable television, direct-to-home satellite TV, pay-per-view. It started commercial operation on Jan. 1, 2001.
In the first eight months of the year, ABS-CBN Films posted a net income of P83.79 million on revenues of P373.82 million.
ABS-CBN 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 of its ratings.
ABS-CBN has already exceeded its full year net income last year of P740 million.
With its strong financial performance, ABS-CBN expects its net earnings to reach P1.2 billion to P1.4 billion by yearend.
In the third quarter, net profit increased by more than two-fold to P365 million from only P134 million in the same period last year.
Consolidated revenues rose 14 percent to P14.5 billion on the back of a 23 percent growth in airtime revenues. Advertising minutes increased by 15 percent year-on-year.
For next year, ABS-CBN is setting aside P2.5 billion for its capital expenditures and the launch of digital TV.