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ABS-CBN
Broadcasting Corp., the media empire of the Lopez
family, posted a net profit of P739 million during the
first six months of the year, up 77-percent from P416
million a year earlier.
Vice
president and chief finance officer Miguel Jose T.
Navarrete said the increase came largely from ongoing
improvements in advertising revenues and the rising
contribution of subscription-based business.
From
January to June gross revenues rose 12 percent to P9.2
billion in the same comparable period, riding on higher
airtime revenues and sale of services.
Navarette said gross airtime revenues grew 20 percent to
P6.2 billion as a result of improved ratings and higher
advertising volume.
“While
industry advertising TV minutes fell four percent, the
company still managed to show some growth. ABS-CBN
proves to be the nationwide leader in both audience
share and ratings, enjoying an advantage of 10 to four
percentage points, respectively, over GMA Network,” he
said.
Navarette added that election spending was a significant
factor in the gains in advertising revenues.
Services
and goods sold by subsidiaries also went up 11 percent
to P2.7 billion on the positive performance of ABS-CBN
Global and ABS-CBN Films.
As of
end-June, ABS-CBN Global’s subscriber base rose 20
percent year-on-year or to 1.6 million viewers
worldwide.
The
company recently added
Japan
and Canada to its list of markets abroad. Navarrete said
ABS-CBN expects to generate more revenues from these key
areas in the coming months.
ABS-CBN
Films registered a 60-percent increase in revenues,
buoyed by ticket sales of movies Kasal, Kasali,
Kasalo; Agent X44; You Got Me; Ang
Cute Ng Ina Mo; and Paano Kita Iibigin.
In the
second quarter, ABS-CBN’s net profit amounted to P459
million from P299 million in the same period last year.
Gross revenues, on the other hand, grew to P5.01 billion
from P4.33 billion in 2006.
At the
rate things are going, Navarrete said the company is
upbeat it could hit more than P1 billion in net profit
for the full year.
“The
deficit is the only negative factor that we are seeing
here. If that concern is not there and the peso further
appreciates to P42 to P43 to a dollar, certainly, the
impact on business will be very good. However, I think
we can go beyond the P1-billion mark,” he said.
This
quarter ABS-CBN expects the completion of the
third-party valuation that will pave the way for the
equity conversion of $30 million of convertible notes
subscribed from Sky Vision Corp. in June 2004.
Sky
Vision is the leading cable TV provider in the country.
ABS-CBN will gain majority control, or more than 50
percent, of Sky Vision upon conversion of the notes.
Central
CATV would be the surviving company. The company could
gain more than 20 percent in cash earnings this year
once the transaction is complete. |
