Corporate News

ABS-CBN profits down 10% in Q1

Posted on May 13, 2011

BROADCASTER ABS-CBN Corp. is maintaining its yearend target of matching 2010’s performance despite recording a drop in profits in the first quarter, an official yesterday said.

ABS-CBN Chief Financial Officer Rolando P. Valdueza heads the first-quarter results briefing for the broadcasting firm at its headquarters in Quezon City. -- Jonathan L. Cellona
“Definitely, we will hit the P3.1 to P3.2 billion as our target [income this year],” Rolando P. Valdueza, ABS-CBN chief financial officer, said in a briefing.

“We’re on trackā€¦ If you look at it, first quarters are usually the slow ones,” Mr. Valdueza said.

Consolidated net income of the firm declined by 10% to P976 million in the first quarter from year-ago levels as performance corrected from the election-related advertising gains last year, data from the briefing show.

Net income fell despite a P674-million one-time gain from the sale of Sky Cable Philippine Depositary Receipts (PDRs) to Singapore-based STT Communications, Ltd.

Sampaquita Communications also bought additional PDRs worth P1.45 billion, thus, resulting in a 40% economic interest for STT Communications in Sky Cable, Mr. Valdueza said.

However, Mr. Valdueza stressed that the Lopez group retained its voting control over Sky Cable, despite a decrease in economic interest to 60%.

Consolidated gross revenues of ABS-CBN decreased by 15% to P6.559 billion.

Advertising revenues fell by 21% to P4.012 billion, while consumer sales decreased by 5% to P2.547 billion.

Expenses meanwhile decreased by 13% to P4.716 billion.

Shares in the Lopez-led firm increased by P0.60 to close at P42 apiece from its previous close on Wednesday. -- Kathleen A. Martin