"Our stars stick it out with us because they realize, whenever they travel, that they are equally, if not more, popular in foreign countries than here," chief finance officer Randolf Estrellado.
Since 2002, ABS-CBN has been selling Philippine-produced soap operas and other programs to distributors in Malaysia and Korea, where these are then dubbed in the local language. In the United States and the Middle East, subsidiary, ABS-CBN Global Ltd. , markets the soaps and other programs to Filipino communities on a program basis, either through cable subscription or satellite dish.
"The company’s vision is to become a Disney or Warner Bros. of Southeast Asia in the next five to 10 years. We can meet that target if we invest heavily on learning how the entire market works and on experimenting with ideas in the magnitude that the United States invests in experimentation," said Estrellado.
The international operation, though only two years, is now contributing 15% of ABS- total revenues of P10 to P17 billion a year. Its net income in 2002 was P148 million.
"We have more capital than debts. Our price per share today is still below the highs of five years ago," said Estrellado.
In the first quarter of the year, ABS-CBN posted a 15% increase in net income to P124.089 million on gross revenues of P3.001 billion.
A major factor behind the company’s healthy financial position is financial discipline. A 4% ceiling on allowable investment expansion has been imposed on all of the company’s 14 departments. The financial viability of each project is also continuously assessed versus the cost of maintaining it.
The company has also rid itself of cost centers such as a basketball team, which used to play with the Metropolitan Basketball Association, and consumer product merchandising of RTWs and caps in malls.
"More than physical and financial assets, the company’s greatest assets are its 5,000 employees and talents, who like and enjoy what they do. This is what brings out the best in people," Estrellado.–RGDelaCruz