ABS-CBN’s Recurring Net Income Up by 1% for the First Quarter of 2012

ABS-CBN’s Recurring Net Income Up by 1% for the First Quarter of 2012

Left to Right: Head of Customer Development Group Vivian Tin, Chief Finance Officer Ron Valdueza, Head of Financial Planning & Systems Peng Armonia, Head of Comptrollership Paz Balayan, Head of Treasury & Compliance Michael Villanueva at the ABS-CBN 2012 first quarter analysts’ and press briefing.

The consolidated net income of ABS-CBN Corporation, the country’s largest multimedia conglomerate, registered P306 million for the first quarter of 2012, down by 69% compared with P976 million in the same period last year. Removing the effects of the gain from the sale of Sky Cable PDRs recognized in the first quarter of 2011 amounting to P674 million, net income would have increased by 1%.

ABS-CBN generated consolidated revenues of P7.1 billion from advertising and consumer sales for the first three months, an 8% increase compared to the same period last year.

ABS-CBN’s advertising revenues reached P4.2 billion in the first three months of the year, an increase of 4% from a year ago. Consumer sales for the quarter amounted to almost P3.0 billion, posting a 15% increase from a year ago. Sky Cable continues to contribute positively with revenues increasing by 12% to P1.2 billion. This is mostly driven by the increased take up of its broadband service subscriptions which increased by 20% year-on-year. ABS-CBN Global revenues likewise increased by 3% year on year on the back of a 3% increase in overall viewer count compared to the previous year. There was double-digit subscriber growth in Canada and single digit growth in all other territories, except Japan and Europe where subscribers
declined.

Total operating and other expenses increased by 10% year-on-year to P6.1 billion brought about by increases in production costs, cost of sales and services , and general and administrative expenses.

As a result of the foregoing, net income attributable to shareholders for the first quarter of the year is at P306 million, 69% lower than last year’s net income of P976 million, but 1% higher than last year’s recurring income of P302 million.

Capital expenditure and film and program rights acquisition for the quarter amounted to P1.1 billion, 22% higher than the level of spending for the same period last year.

ABS-CBN maintained its national audience share and ratings leadership with prime-time audience share averaging 42% in the first quarter of 2012, with a 12 percentage point lead over GMA’s, based on the Kantar National TV Ratings.

For the first three months of 2012, 17 of the company’s shows were in the Top 20, with the following occupying the Top 10 slots: Walang Hanggan, Ikaw ay Pag-ibig, Budoy, My Binondo Girl, Dahil sa Pag-ibig, Eboy,Maalaala Mo Kaya…, TV Patrol (Weekday), Nasaan Ka Elisa, Wansapanataym, Junior Master Chef Pinoy Edition (Saturday) and Rated K Handa Na Ba Kayo?
ABS-CBN Film Productions, Inc. released five films in the first quarter of 2012. Three of them– Enteng ng Ina Mo, Segunda Mano and Unofficially Yours–topped P100 million in box office receipts, earning blockbuster status by local standards.