Corporate News

Higher ad revenues lift ABS-CBN Q3 income

Posted on November 10, 2015

LOPEZ-LED ABS-CBN Corp. on Monday said it is on track to meet its P2.4-billion profit target this year after earnings grew by an annual 27.7% from July to September, on the back of a faster growth in advertising revenues.

The listed media company earned P696.19 million in the third quarter, based on a statement it released yesterday, compared to its P545.17-million profit in 2014’s comparable period.

Revenues reached P10.1 billion, higher than the P8.77 billion gross revenue it reported in 2014’s comparable period.

“Advertising revenue grew by 7.7% and that’s really the driver. In the past we’re just growing by 4-5%… And retail events -- because of international events we do outside, revenue is growing,” ABS-CBN Chief Financial Officer Aldrin M. Cerrado said during a media and analyst briefing yesterday at the Makati Shangri-La Hotel.

The latest figures brought its nine-month net income to P1.9 billion, 23% higher year on year, while net revenues improved by 11% to P27.83 billion.

“Given our growth trajectory, we are likely to hit record revenues by year-end, and we should be in a strong position to build on this given that next year is an election year,” Mr. Cerrado said.

He said that at present, revenues from political advertisements already reached P700 million, and will likely reach less than P1 billion by yearend.

“With one quarter to go, we are confident that we will succeed in meeting our earnings guidance of P2.4 billion for 2015.”

In 2014, ABS-CBN posted a net income of P2.03 billion. -- Daphne J. Magturo