ABS-CBN hikes net income projection

MANILA, Philippines - Multi-media conglomerate ABS-CBN Corp. has raised its net income projection to P1.6 billion for the year after its nine-month period earnings exceeded its earlier target of P1.3 billion.

Ronaldo Valdueza, chief financial officer of ABS CBN, said in a press conference yesterday the firm has increased its full-year net income target to P1.6 billion with its net profits as of end-September well-above the P1.3 billion target announced earlier.

Net profits of ABS-CBN reached P1.55 billion in the January to September period, down 31 percent from the P2.24 billion in the same period last year.

“Our (new) target is about P1.6 billion. At P1.55 billion as of end-September, if you compare it to the earlier announced P1.3 billion target, that is already about 20 percent growth for nine months,” he said.

Consolidated revenues of the firm from advertising and consumer sales reached P24 billion as of end-September, up 13 percent from the same period last year.

Advertising revenues amounted to P14.5 billion, rising eight percent from last year.

Consumer sales meanwhile, grew 21 percent to P9.5 billion from the same period a year ago.

The firm’s total operation expenses as of end-September likewise climbed 14 percent year-on-year to P19.4 billion due to increases in production costs.

Valdueza said the firm is optimistic that the new target of P1.6 billion for the year may be achieved as it expects political advertisements in the remaining months of the year with elections to be held next year.