ABS-CBN Corp., the listed media arm of the Lopez group, expects to match last year’s record profits despite intensifying competition and early signs of a slowdown given the absence of political-related advertisements.  

At the sidelines of the company’s special stockholders meeting on Wednesday, ABS-CBN chief financial officer Rolando Valdueza told reporters that the company exceeded its 2010 net income forecast of P3 billion.

Valdueza said profit this year may reach the same level even as he warned that advertising revenues, the company’s main income source, for the first quarter are likely to end lower compared with the same period in 2010.

Shares of ABS-CBN lost 2.79 percent to 43.50 each on Wednesday’s close.

Political-related placements accounted for a fifth, or P1.04 billion, of ABS-CBN’s advertising revenues in the three months to March last year.

“There are several events that are occurring that we are not at liberty to discuss today that will result in a significant impact to our profitability,” ABS-CBN chairman Eugenio Lopez III said.

He added that the advertising climate remains “good” as the country’s economy continues to grow. The media conglomerate implemented its yearly advertising rate hike last month.   

Valdueza said growth will come from units, including cable service provider Skycable and ABS-CBN Global which handles the company’s international business.

He added that the company is keeping a close watch on production costs, amid growing competition from others networks such as GMA Network Inc. and ABC Development Corp., operator of TV5.  

Meanwhile, Lopez said the company is not interested to bid for the government’s stake in sequestered television stations RPN9 and IBC3, citing legal limitations.  

Earlier, San Miguel Corp. said it is interested in making an offer to acquire these assets should the government decide to auction these off.

Shareholders of ABS-CBN approved the amendments to the company’s corporation bylaws relating to qualifications of directors.