ABS-CBN Nets P1.7 Billion for the First Half of 2011

The consolidated net income of ABS-CBN Corporation registered P1.7 billion for the first six months of the year.

ABS-CBN delivered consolidated revenues of P13.9 billion from advertising and consumer sales, an 18% decline compared to a year ago. Less the revenues from political advocacies and advertisement from the first six months of 2010, consolidated revenues in the first half of 2011 increased by 1% year-on-year.

ABS-CBN’s advertising revenues reached P8.8 billion, a decline of 24% from a year ago. Minus the revenues from political advocacies and advertisement in the first half of 2010, advertising revenues increased by 4% year-on-year.

Consumer sales for the first half of 2011 amounted to P5.1 billion, posting a 4% decrease or P219 million less from a year ago, mainly from ABS-CBN Global. ABS-CBN Global revenues declined by 14% year on year in peso terms due to the decline in subscribers and the appreciation of the Philippine peso against the US dollar. Meanwhile, Sky Cable continues to contribute positively with revenues increasing by 8% to P2.1 billion. This is mostly driven by the increased take up of its broadband service subscriptions which increased by 23% year-on-year

Total operating and other expenses dropped by P969 million or 9% year-on-year to P10.4 billion. This was partly a result of lower cost of sales and services and general and administrative expenses (GAEX) as the company continued its effort to manage and control expenses. The decline in both expense accounts more than made up for the increase in total production costs due to the Company’s drive to produce quality and innovative programs.

Net income attributable to shareholders for the first half of 2011 is at P1.7 billion, aided by a gain on sale of Sky Cable Philippine Depositary Receipts (PDRs) to the Singaporean company, STT Communications Ltd. Meanwhile, earnings before interest, taxes, depreciation and amortization (EBITDA) hit P4.0 billion.

Capital expenditure and film and program rights acquisition for the first half of 2011 amounted to P2.1 billion, P542 million or 34% higher than the level of spending from previous year. Additional equipment was purchased to increase the company’s capacity to produce additional new programs.

ABS-CBN maintained its national audience share and ratings leadership with prime-time audience share averaging 42% in the first quarter of 2011, with a 12 percentage point lead over GMA’s, based on the Kantar National TV Ratings figure.

For the period January to June 2011, eighteen of the company’s primetime shows were in the Top 20 with fifteen occupying the Top 13 slots: Emil Cruz Jr.’s Mara Clara, 100 Days To Heaven, Pablo S. Gomez’s Mutya, Minsan Lang Kita Iibigin, Guns And Roses, Pilipinas Got Talent (Saturday and Sunday), Noah, Maalaala Mo Kaya…, TV Patrol (Weekday), Imortal, Rated K Handa Na Ba Kayo?, Wansapanataym, Gandang Gabi Vice and Goin’ Bulilit.

ABS-CBN Global’s overall viewer count decreased by 1% year-on-year, driven by the decline in subscriber growth in the Middle East, Europe and Japan. Double digit subscriber growth continued to be experienced in Canada, and mid-to-high single digit subscriber growth in Asia-Pacific and Australia.

Sky Cable’s consolidated revenues from cable TV and broadband services grew 8% year-on-year, driven by strong growth in broadband subscriptions.

ABS-CBN Film Productions, Inc. released eight films in the first six months of this year. Four of them–Ang Tanging Ina Mo Last Na To, Dalaw, Catch Me I’m in Love and In The Name of Love–topped P100 million in box office receipts, earning blockbuster status by local standards.

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