ABS-CBN Corp. on Thursday reported a 7 percent increase in net income for the first quarter of the year to P538 million from P503 million posted in the first quarter of 2013.
The company credited the strong performance of its film business, global distribution, and pay-TV networks for much of the profit growth, with net revenues up at P8.2 billion from 7.9 billion in the comparative year-earlier period.
“We are off to a good start in 2014,” Aldrin Carredo, chief financial officer of ABS-CBN said in a statement.
“I am particularly pleased that we were able to grow our net income by 7 percent considering that last year’s results included election-related revenues,” he added.
Costs and expenses rose 2.8 percent, slower than the 3.4 percent climb in revenue.
The company expects new initiatives will boost its revenues and cut costs further in the years ahead.
“I am confident that our company will deliver strong results this year. We are undertaking various initiatives to generate revenues beyond advertising, as well as control our costs, and I believe we will reap the rewards from these efforts in the coming years,” said Ron Valdueza, head of Corporate Services Group 2 and group chief financial officer.
Total assets rose to P65.1 billion from P58 billion at the end of last year, while its equity base stood steady at P26 billion, compared with P25.9 billion at end-2013.
Star Cinema movies generated more than P600 million in revenues during the period in review.
“Girl, Boy, Bakla, Tomboy,” “Bride for Rent”, and “Starting Over Again” brought in more than P1 billion in ticket sales both here and overseas. The company’s revenues from global operations jumped 22.1 percent during the first quarter, boosted by the international release of Star Cinema movies and the success of events such as ASAP Dubai.
As of the end of the first quarter, ABS-CBN’s mobile business had approximately 300,000 subscribers. Beyond traditional voice and text services, ABS-CBN Mobile allows users to watch all the programs of ABS-CBN on their smartphones.
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.