ABS-CBN hits record P2.265-billion profit in first half

MANILA, Philippines - Multimedia conglomerate ABS-CBN Broadcasting Corp. announced yesterday that its net income hit a record P2.265 billion in the first half this year, exceeding its full-year 2009 earnings of P1.79 billion, boosted by advocacy/political advertisements and higher consumer sales.

In a press briefing, ABS-CBN chief financial officer Rolando Valdueza said the last time the media giant posted a P2-billion net income was in 2000. Given its impressive performance in the first half, Valdueza expressed confidence ABS-CBN would achieve its P3-billion income target this year.

Consolidated revenues rose 44 percent in the January to June period this year to P16.84 billion, 68 percent of which or P11.5 billion came from advertising revenues while the balance came from consumer sales. Revenues from advocacy or political ads amounted to P11.5 billion, up 71 percent from P6.72 billion.

In the second quarter, ABS-CBN reported its highest quarterly net profit at P1.18 billion or nearly double the P600 million recorded in the same period in 2009. Revenues for the period jumped 42.86 percent to P9 billion from P6.3 billion a year earlier.

Charles Gamo, head of investor relations and corporate planning at ABS-CBN, said recurring advertising revenues, excluding non-recurring political ads, improved 36 percent to P9.17 billion due to higher advertising minutes sold and rate adjustments implemented in August last year and in February this year.

Total advertising minutes went up 42 percent to 48,760 as the network continued to lead TV ratings nationwide, registering an average national audience share of 44 percent in the second quarter.

Gamo said flagship TV station Channel 2 enjoyed a 60-percent share compared with main competitor GMA 7’s 40 percent share of the combined total minutes sold by the two channels beginning in May, noting that ABS-CBN has overtaken GMA 7’s advertising minutes load since March, based on figures from Nielsen Media Research.

ABS-CBN shares soared to an all-time high of P52.70 yesterday, their highest in 10 years, prior to closing at P52.50 apiece on volume of 235,000 shares valued at P12.15 million. The stock has been on a run for eight days already, its longest winning streak based on data from the Philippine Stock Exchange.

Gamo said ABS-CBN likewise reclaimed its leadership position in Metro Manila with a 38-percent audience share in Mega Manila.

Consumer sales went up eight percent to P5.34 billion, primarily coming from international unit ABS-CBN Global and Skycable.

ABS-CBN Global reported a 14-percent growth in revenues in dollar terms, helped by the 10 percent increase in subscriber base, which now stands at over 2.1 million worldwide.

Skycable, on the other hand, registered a 13 percent rise in revenues from cable TV and broadband services. It had a total of 27,000 broadband subscribers as of end-June this year compared with only 17,000 the previous level.

ABS-CBN has so far spent P1.25 billion this year for capital expenditures and film and program rights acquisitions. It has set a P3.49-billion capex program this year, which is expected to be fully used up by the end of 2010.

ABS-CBN produces a wide variety of world-class entertainment programs in several 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, Internet and mobile 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).