Corporate News

ABS-CBN ‘off to a good start’ -- CFO

Posted on May 16, 2014

BROADCASTING giant ABS-CBN Corp. reported a 7% increase in net income in the first quarter of 2014 on the back of strong revenue from its films and core businesses, while keeping the rise in its expenses at bay.

ABS-CBN Broadcasting Corp. chief financial officer Aldrin M. Cerrado addresses the media in this photo taken on Aug. 13, 2013. He yesterday said the network is “off to a good start� after profit in the first three months accounted for a quarter of its P2-billion target. -- BW file photo

In a disclosure to the Philippine Stock Exchange, the company said its net income grew to P538 million from P503 million in the same period a year ago.

“I am particularly pleased that we were able to grow our net income by 7% considering that last year’s results included election-related revenues,” Aldrin M. Cerrado, ABS-CBN Corp. chief financial officer, said in a statement.

“We are off to a good start in 2014,” he added.

The network has set a profit target of P1.8 billion to P2 billion this year.

Its net revenues in the first quarter rose 3.4% to P8.2 billion from P7.9 billion in the same comparable period a year ago.

Star Cinema’s movies accounted for more than P600 million of the company’s revenues, with ticket sales both here and overseas reaching over a billion pesos, the Lopez-led company said.

Revenues from global operations were up 22.1% “boosted by the international release of Star Cinema movies and the success of events, such as ASAP Dubai.”

Its costs and expenses grew at a slower pace than revenue -- 2.8% to P7.41 billion from last year’s P7.21 billion.

The network said it was impacted by foreign exchange fluctuations, while spending more on “programming and bandwidth costs”, referring to new programs and new studios as well as to costs related to its shift to digital terrestrial TV.

The network has also forayed into the mobile business, which it said is “beginning to gain traction.”

As of the end of the first quarter, ABS-CBN Mobile had 300,000 subscribers, the company said.

Its total assets rose to P65.1 billion from the end of last year’s P58 billion, while its equity base increased to P26 billion from 2013’s P25.9 billion.

ABS-CBN shares lost 40 centavos or P1.02% to P38.90 each yesterday.

Equity broker CLSA has put a “buy” tag on the shares with a target price of P52 apiece.