ABS-CBN officials said profits this year would be in line with revenue growth, with international operations and advertising revenues as the main drivers of growth. For 2003, the company expects profits to hit the P1-billion mark
International operations currently account for 15 percent of the company’s total revenues. ABS-CBN Global, whose subscribers grew to 176,830 worldwide as of end-September last year, is expected to post another double-digit growth, ABS-CBN senior vice-president for international operations Rene Encarnacion said.
ABS-CBN senior vice-president for sales and marketing Nicanor Gabunada added that aggressive marketing strategies, stronger advertising spending, the steady growth of its international operations and the introduction of Chinese telenovelas bolstered the network’s robust performance in 2003.
With a strong operating income and a decline in interest expense, ABS-CBN posted a net profit of P888.83 million in the first nine months of 2003, compared with only P65 million the same period a year earlier.
Consolidated airtime and other broadcasting related revenues rose 20 percent to P8.48 billion from P7.08 billion. Airtime revenues, primarily consisting of advertising revenues from the company’s VHF and UHF television network and AM and FM radio, grew 23 percent to P8.32 billion as against P6.74 billion a year ago.
Net sales and revenues reached P2.73 billion or 38 percent higher than the previous year’s P1.98 billion. ABS-CBN Global’s net sales, which accounted for 70 percent of total net sales and services, increased by 38 percent to P1.92 billion due to an increase in direct-to-home fees from $20 to $23 per month with the addition of PinoyCentral TV to its channel line-up.
ABS-CBN’s strong rebound began in the first half of 2003 when it posted consecutive record-breaking P1 billion airtime gross revenues on television from May to August.
"Despite aggressive attempts of competitors to close-in on the ratings game, ABS-CBN has maintained its top position not only in sales revenues but also in innovative programming," Gabunada said.
The network introduced in May the hit Taiwanese primetime television drama, Meteor Garden, which raked in strong ratings for the network. Its competitors soon followed suit and also launched Chinese tele-dramas that eventually started the chinovela craze on local television.
Meanwhile, ABS-CBN started exporting its locally produced programs like soap operas, game shows and youth programs in the international market through its international sales and distribution.
Set to be launched thist year is The Filipino Channel (TFC) in Milan, Italy, which is the base of operations of ABS-CBN in Europe. TFC will be commercially available via direct-to-home (DTH) satellite service.