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By Darwin G. Amojelar, Reporter
ABS-CBN Broadcasting Corp. sees
its net profit reaching the billion-peso mark this year as its net
income more than doubled in 2006.
“We hope to reach a
billion-peso mark and it can be accomplished this year,” Miguel
Jose Navarette, ABS-CBN vice-president and chief financial officer,
told analysts during a briefing.
The Lopez-led network posted a
net profit of P741 million last year or more than double the P252
million it posted in 2005.
The company said gross revenues
rose by two percent to P17.386 billion from a year earlier, driven
by continuous improvement in airtime revenues and higher sale of
services.
In terms of audience share in a
nationwide survey, ABS posted a 47-percent share versus GMA
Network’s 35 percent.
In addition, ratings of ABS stood
at 19 percent and GMA 7, 14 percent.
The survey was conducted by AGB
Nielsen Media Research from March 4 to March 24 this year.
ABS-CBN’s operating income went
up by 58 percent to P1.661 billion, while earnings before interest,
taxes, depreciation, and amortization
(EBITDA) increased by 19 percent
to P4.188 billion, or an EBITDA margin of 24 percent.
Airtime revenues of the company
also grew 3 percent to P9.602 billion owing to revenue contribution
from nontraditional advertising or creative buys, such as product
intrusions and product placements.
For the first two months of the
year, advertising revenue showed a significant increase owing to
political advertisement.
License fee from the migration of
DTH (direct to home) subscribers in North America to DirecTV’s
platform amounted to P1.117 billion.
ABS-CBN’s total expenses were
down by four percent to P15.976 billion in 2006.
Navarette also said capital
expenditure for this year amounted to P1.5 billion to fund its
digital TV roll out, film rights acquisition and Korean Novela.
He added that Beyond Cable is in
the process of converting into equity the $30-million debt that it
extended to Sky Cable.
“The valuation is expected to
done in the third quarter of the year,” Navarette said.
When the conversion of the debt
completed, Beyond Cable will owns 51 percent of Sky Cable.
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