ABS-CBN reports 20% jump in H1 net income

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MULTIMEDIA conglomerate ABS-CBN Corp. on Wednesday said net income in the first half jumped 20 percent to P1.2 billion from P995 million in the same period last year on sustained revenue growth.

The company reported consolidated revenues of P17.7 billion for the first six months, with revenue in the second quarter rising 11 percent year-on-year to P9.3 billion.

“First half is good for us, second half would be better,” ABX-CBN chief financial officer Aldrin M. Cerrado said during the company’s first-half briefing on Wednesday.

“Our performance during the first half was well within our expectations,” Cerrado said. “We disclosed a guidance of P2.4 billion for 2015 and we are about halfway there.”


Cerrado added that “Channel 2 has extended its dominance in terms of national audience shares and ratings with a 52-percent national audience share at end of June 2015.”

According to Kantar Media, the top 10 programs for free-to-air television in the first half were all produced by ABS-CBN. The company expects to further boost its audience share once it improves the reception of Channel 2 in the Mega Manila area and Central Luzon.

Star Cinema also turned in a very good performance at the box office with P1.4 billion in ticket sales generated from the release of eight movies.

“Consistent with our push towards growing our broadband business, Sky’s broadband subscriber growth has been very strong, increasing by 30 percent to over 115,000, while our Global business now reaches around 3 million of our fellow Kapamilya overseas,” Cerrado said.

There was also significant margin expansion in the company’s TV and studio operations, with net income margin and EBITDA margin for the segment improving from 11 percent to 15 percent and 25 percent to 27 percent, respectively.

The company reported that its production costs were lower by 2.3 percent compared to the same period last year, while total assets rose to P68.9 billion as of the end of June from P67.2 billion as of end last year.

Its equity base remained flat at P26.9 billion as of the end of June from end-December 2014.

Ron Valdueza, Group CFO and head of Corporate Services Group 2 said, “I believe our second half will be just as strong and we should continue to see marked improvements in the performance of our new initiatives.”

ABS-CBN TV Plus digital boxes are now in over 500,000 households and the company expects to breach the 1 million mark by year-end.

“This should have a positive impact on ratings and will open up potential advertising opportunities in our four additional channels, especially the movie channel Cinemo, and Yey, our cartoon channel,” said Valdueza.

Various adjustments to the strategy for ABS-CBNmobile were also made. While initially lowering the overall subscriber base, it has more than doubled the average revenue per user and resulted in a much higher reloading rate, the company said.

It added that the O Shopping Channel is now generating over P1.6 million in daily sales, while the educational theme park, KidZania, located at Fort Bonifacio Global City, recently opened with more than 4,000 visitors during the opening weekend.

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