ABS-CBN Q1 profit up nearly 6-fold to P1.1 billion

MANILA, Philippines - Multi-media conglomerate ABS-CBN Broadcasting Corp. reported a nearly six-fold jump in core net earnings for the first quarter this year to P1.1 billion, driven by strong advertising revenues and successful efforts to contain its expenses.

In a press briefing yesterday, ABS-CBN’s investor relations heads Charles Gamo said net income during the quarter under review reached P1.09 billion or 5.7 times the P191 million recorded the same period in 2009.

Consolidated revenues rose 47 percent to P7.75 billion with advertising revenues accounting for 65 percent of total, thus reducing the traditional contribution share of consumer sales to 35 percent. 

Consumer sales expanded P170 million to P2.69 billion. 

Aggregate advertising revenues surged 83 percent to P5.06 billion from P2.76 billion. Of the total, P2.968 billion came from political or advocacy ads.

By the end of the year, advertising revenues are seen to grow to P15.5 billion from P13.5 billion.

Recurring advertising revenues, mainly from regular advertisers, hit P1.26 billion or an increase of 45 percent due to higher total advertising minutes  and the rate adjustments implemented in August 2009 and February this year.

Total day advertising minutes sold went up 41 percent to 22,435 from 15,963, boosted by strong national ratings and audience share.

Non-recurring election-related advertising revenues,meanwhile, amounted to P1.04 billion.

Given its robust financial performance in the first quarter, ABS-CBN is on track to meet its P2-billion income target this year, said company chief financial officer Rolando Valdueza.

ABS-CBN’s international unit, ABS Global, registered an 11 percent growth in revenues. As of end-March this year,  it had an estimated 2.2 million subscribers, driven by strong double-digit subscriber growth in cable TV and IPTV subscriptions.

Cost of sales and services went up only two percent to P1.7 billion with ABS Global’s cost of sales remaining flat in peso terms even as its sale of services and goods increased seven percent year-on-year.