Earnings down
ABS-CBN earnings down 53%
By Zinnia B. Dela Peña
The Philippine Star 11/11/2005
Lower airtime revenues pulled down the earnings of ABS-CBN Broadcasting Corp. in the nine-month period to September this year by 53 percent to P344 million, from P734.58 million in the same period a year earlier.
ABS-CBN chief financial officer Randolph Estrellado attributed the company’s poor financial performance to the network’s failure to regain the lead in primetime TV ratings.
Gross airtime revenues fell five percent to P8.01 billion due to lower ratings of its various programs.
As of end-September this year, ABS-CBN’s Channel 2 household ratings in Mega Manila averaged a lower 14 percent, from 16 percent in the same period last year.
Net sales and services, however, rose 15 percent to P3.71 billion, bulk of which coming from the network’s international subsidiary ABS-CBN Global which saw its subscriber base rising by 25 percent.
ABS-CBN Global currently has a total of 1.9 million viewers worldwide. It contributed P1.4 billion to ABS-CBN’s total revenues.
Operating expenses also went up 12 percent to P9.84 billion owing to the migration of direct-to-home subscribers in the US as well as expenses related to the employee reduction program or SSP (special separation package). Without these non-recurring items, total operating expenses increased by only seven percent to P9.38 billion.
Other subsidiaries, led by ABS-CBN Films and Star Records, registered revenues of P884 million, down 14 percent from P1.03 billion.
ABS-CBN’s total long-term debt increased by four percent to P6.22 billion from P5.97 billion due to the final drawdown in March on the $120-million facility which was signed in June 2004, offset by two quarterly loan payments.
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ABS-CBN profits plunge on lower airtime revenues
Manila Times Nov 11,2005
ABS-CBN Broadcasting Corp.’s profits plunged by half in the first nine months of the year owing to lower airtime revenues and higher operating costs.
The company said net income dropped by P390.5 million to P344 million from P734.6 million in the same nine-month period last year.
The broadcast network attributed the decline to weak airtime revenues reflecting lower ratings of its programs this year compared with last year, even as operating costs were controlled.
The company’s gross airtime revenues declined by 5 percent to P8.014 billion for the period as Mega Manila Channel 2 household ratings averaged a lower 14 percent in the first nine months from 16 percent in the same period last year.
Randolph Estrallado, ABS-CBN chief finance officer, said lower ratings will continue in the fourth quarter, but a recovery may happen next year as new programs are introduced.
“The year is very fruitful for us,” he said.
ABS-CBN’s other broadcast related revenues, however, increased by 359 percent to P812 million primarily due to license fees amounting to P618 million from the initial phase of the migration of existing US direct-to-home subscribers to DirectTV’s platform.
In the third quarter alone, the company posted a 9-percent decline in net profits to P158.9 million this year from P174.5 million from last year.
The company’s net sales and services posted a sustained 15-percent growth year on year to P3.7 billion led by ABS-CBN Global. The international subscriber base went up by 25 percent year on year, translating to 1.9 million viewers worldwide by end-September.
Operating expenses, meanwhile, increased by 12 percent to P9.836 billion. “These expenses, however, include non*recurring charges related to the migration of direct-to-home subscribers in the US, as well as expenses related to the employee reduction program or SSP [special separation package],” the company said.
With the operating expense growth of 12 percent outpacing net revenue growth by 8 percent, operating income dropped by 17 percent to P1.2 billion from P1.45 billion.
--Darwin G. Amojelar
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ABS-CBN profit down 9% in Q3
Nov. 10, 2005
XFN-Asia
ABS-CBN Broadcasting Corp. posted weaker earnings in the third quarter to September, reflecting the impact of lower airtime revenues and higher operating costs.
Net profit in the third quarter came in at 158.9 million pesos, down nine percent from 174.5 million in the same period last year.
In the first nine months, net profit fell 53 percent to 344 million pesos.
"Airtime revenues remained weak, reflecting the lower ratings of [television] programs this year compared to last year, while operating costs, though controlled, maintained its growth," ABS-CBN said in notes accompanying its results.
(One dollar = 54.71 pesos)
