ABS-CBN profit up 25% to P2.03B

MANILA, Philippines - Multimedia giant ABS-CBN Corp. booked a 25-percent earnings growth last year as it benefitted from non-recurring revenues coming from election-related advertisements.

ABS-CBN chief financial officer Aldrin Cerrado said in a press conference that the company logged a net income of P2.03 billion from P1.62 billion in 2012.

Cerrado also reported that the company’s revenues increased 15 percent to P33.4 billion last year from P28.9 billion in 2012.

 â€œOur company’s solid financial performance for 2013 was boosted by our dominance in national ratings which allowed us to capture a bigger share of the advertising spending in the country, election-related spending, and various inititiaves within the company to be more cost-efficient,” he stressed.

The company said costs and expenses rose 11 percent slower than the 15 percent revenue growth rate last year.

The company’s assets rose to P57.99 billion from P51.3 billion while its equity base rose to P25.9 billion from P19.4 billion.

The company disclosed that it had forged various strategic partnerships in 2013, consistent with its overall plan to bring quality content to its customers through various platforms.

The Filipino Channel’s agreement with Orbit Showtime Network has allowed ABS-CBN to further broaden its reach to Filipinos in the Middle East, adding around 50,000 customers, while the company’s  partnership with the owners of the Mars Ravelo properties will bring the popular local superheros to television sets and theaters in the Philippines and overseas. Skycable continues to dominate the cable TV business with more subscribers than its nearest competitor.

 â€œIt has been a busy and productive year, and this year may be even busier,” said Cerrado. “We launched our O Shopping Channel and ABS-CBN Mobile in the fourth quarter of last year. These two  intiatives are now in full swing, and we are currently working on an educational theme park, KidZania, which will open during the first quarter of 2015.”

According to research firm Kantar Media, the top 10 programs in 2013 for free-to-air television were all produced by ABS-CBN. The company hopes to further boost its audience share once it improves the reception of Channel 2 in the Mega Manila area and Central Luzon. This should be achieved through ABS-CBN’s transition to digital terrestrial television.

Rolando P. Valdueza, head of corporate services and Group CFO, said their  performance last year has allowed the company to declare a 60 centavo per share cash dividend, payable to shareholders on May 7, 2014.

“I believe our company is on a solid growth path, and I am extremely excited about our prospects for the coming few years.”

Various international brokerage firms, including Deutsche Regis, Credit Lyonnais, and Maybank ATR Kim Eng, have included ABS-CBN in their research coverage, and all are positive about the company’s future prospects. ABS-CBN is one of Credit Lyonnais’ top stock picks with a target price of P52.