ABS-CBN profit surges 21% in second quarter

MANILA, Philippines -  Media conglomerate ABS-CBN Broadcasting Corp. reported a 21-percent jump in its net income in the second quarter this year as a stronger program lineup bolstered its audience share, allowing it to maintain its supremacy in the national TV ratings race.

In a press briefing yesterday, ABS-CBN chief financial officer Rolando Valdueza said its net earnings from April to June this year amounted to P621 million from P512 million in the same period a year ago. This boosted the network’s first half net income to P813 million an increase of eight percent from the previous level.

Given its better than expected financial results, ABS-CBN is now looking at a 10-percent growth in net profit this year from the original forecast of flat growth, Valdueza said.

Consolidated revenues reached P11.7 billion in the first six months of the year, 14 percent higher than the year earlier figure. Around 57 percent of the total came from airtime revenues, amounting to P6.72 billion or an improvement of six percent over the previous level, followed by direct sales (43 percent) and SkyCable (15 percent).

Consolidated direct sales grew 28 percent to P4.97 billion, mainly driven by the eight-percent increase in the subscriber base of ABS-CBN Global amid an economic downturn.

Buoyed by strong subscription growth in prepaid cable TV and broadband services, SkyCable chipped in P1.73 billion in revenues or an increase of 103 percent from its contribution the same period a year ago.

In the second quarter, ABS-CBN’s consolidated airtime revenues rose 12 percent to P3.96 billion.

Total expenses, meanwhile, went up by only six percent due to tight control of production costs and operating expenses. But with the inclusion of SkyCable in its books, ABS-CBN’s total expenses grew 16 percent to P10.4 billion.

Based on the TNS National Urban Philippines survey, ABS-CBN registered nationwide total day ratings and national primetime ratings of 18.2 percent and 50 percent, respectively in June.

Valdueza said SkyCable needs an additional P600 million to roll out digital boxes and expand its broadband service.  Funding will be sourced through borrowings.

SkyCable expects to end the year with a total of 20,000 broadband subscribers and expects this figure to double next year.  It now has close to 18,000 subscribers.

SkyCable has moved towards digital encryption with the installation of digital set-up boxes for viewers to enjoy greater value from their paid cable subscription. Part of the applications offered through digital TV include video-on-demand and high definition TV.

SkyCable is offering broadband Internet  in the country under Dubbed Sky Broadband, which boasts of the highest speeds that can run as much as four times faster than any residential DSL. 

It is also offering Sky Voice, which provides telephone service through the same cable line that delivers cable TV and broadband Internet. At only P0.40 P0.88 per minute, subscribers can place a call to any of the 21 countries available in the service.

The company will increase the penetration  of Internet broadband and telephone services when it completes its conversion of its existing cable network to digital.

ABS-CBN produces a wide variety of engaging world-class entertainment programs in multiple genres and balanced credible news programs that are aired on free-to-air TV via Channels 2 (VHF) and 23 (UHF) and a regional network of TV and radio stations nationwide. It also provides news and entertainment programming for nine channels on cable TV.

The company owns the leading film and music production

and distribution outfit in the Philippines, and has interests in cable TV, mobile and Internet multimedia services, and glossy-magazine publishing. It brings its content to worldwide audiences via cable, satellite and the Internet, primarily through ABS-CBN Global’s The Filipino Channel (TFC).