Quezon City, Philippines (November 14, 2011) – The consolidated net income of ABS-CBN Corporation (“ABS-CBN” or the “Company”) (PSE: ABS, ABSP), the country’s largest multimedia conglomerate, registered P2.2 billion for the nine months ended September 30, 2011.
ABS-CBN delivered consolidated revenues of P21.1 billion from advertising and consumer sales, a 15% decline compared to a year ago. Less the revenues from political advocacies and advertisements in 2010, consolidated revenues in the nine months of 2011 declined by 3% year-on-year.
ABS-CBN’s advertising revenues reached P13.4 billion, a decline of 21% from a year ago. Minus the revenues from political advocacies and advertisements in 2010, advertising revenues declined by 4% year-on-year. This decrease is attributable to a slowdown in advertising spending by corporates.
Consumer sales for the nine months of 2011 amounted to P7.8 billion, posting a 1% decline from a year ago. ABS-CBN Global revenues declined by 11% 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 10% to P3.2 billion. This is mostly driven by the increased take up of its broadband service subscriptions which increased by 21% year-on-year.
Total operating and other expenses dropped by P1.4 billion or 8% year-on-yeear to P16.0 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 costsdue to the Company’s drive to produce quality and innovative programs.
Net income attributable to shareholders for the nine months of 2011 is at P2.2 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 P5.6 billion.
Capital expenditure and film and program rights acquisition for the nine-month period of 2011 amounted to P3.2 billion, 30% higher than the level of spending from the 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 nine months of 2011, with a 12 percentage point lead over GMA’s, based on the Kantar National TV Ratings figure.
For the nine-month period, eighteen of the company’s shows were in the Top 20, with the following occupying the Top 17 slots: Emil Cruz Jr.’s Mara Clara, 100 Days to Heaven, Pablo S. Gomez’s Mutya, Minsan Lang Kita Iibigin, Maalaala Mo Kaya…, Noah, My Binondo Girl, Pilipinas Got Talent (Sunday), TV Patrol (Weekday), Pilipinas Got Talent (Saturday), Guns and Roses, Junior Master Chef Pinoy Edition, Nasaan Ka, Elisa?, Imortal, Rated K Handa Na Ba Kayo?, Wansapanataym and Maria La Del Barrio.
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. Subscriber growth continued to be experienced in Canada, Asia-Pacific and Australia.
Sky Cable’s consolidated revenues from cable TV and broadband services grew 10% year-onyear, driven by strong growth in broadband subscriptions.
ABS-CBN Film Productions, Inc. released twelve films from January to September of this year. Five of them–Ang Tanging Ina Mo Last Na To, Dalaw, Catch Me I’m in Love, In The Name of Love and No Other Woman–topped P100 million in box office receipts, earning blockbuster status by local standards. No Other Woman, a co-production with Viva Films, grossed P275 million.
