ABS-CBN keeps P2.4-B earnings goal in check

MANILA, Philippines - Multi-media conglomerate ABS-CBN Corp. is on track to end the year with P2.4 billion in net income given strong financial results seen in the first nine months and higher revenues expected from election-related advertisements.

“With one quarter to go, we are confident we will succeed in meeting our earnings guidance of P2.4 billion for 2015,” ABS-CBN chief financial officer Aldrin Cerrado said in a briefing.

The company’s net profit reached P1.9 billion in the January to September period, 23 percent higher than the P1.5 billion recorded a year ago.

Revenues rose by 11 percent to P27.8 billion. In particular, revenues generated from ads went up by 9.7 percent to P15.3 billion.

Meanwhile, revenues from consumer sales grew 12.7 percent to P12.5 billion.

Cerrado said ABS-CBN remains upbeat on its financial performance despite the growing popularity of Eat Bulaga’s Kalye-serye or Aldub segment.

“Given our growth trajectory, we are likely to hit record revenues by year-end, and we should be in a strong position to build on this given that next year is an election year,” Cerrado said.

As of the end of September, revenues from election-related advertisements reached P700 million.

Ron Valdueza, chief finance officer and head of corporate services group at ABS-CBN, said the company expects revenues from election-related ads to reach less than P1 billion this year.

Based on data from Kanta Media, the top 10 programs for free-to-air television during the nine-month period were all produced by ABS-CBN.

The Lopez-owned network intends to further boost its audience share through improved reception in the Mega Manila area and Central Luzon.

Also contributing to the group’s revenues are Kidzania Manila, which opened its doors to the public last Aug.7 as well as ABS-CBN TVplus digital boxes which are now in over 800,000 households.

Initially priced at P2,500 per digital box, the company has brought this down to P1,999 through brand alliances with advertising partners.

“This will soon have a positive impact on ratings and will create advertising opportunities in our four additional channels,” Valdueza said.