MANILA, Philippines (UPDATE) - Multimedia conglomerate ABS-CBN Corp. reported a consolidated net income of P306 million for the first quarter of 2012. This is 69% lower than the net income of P976 million for the first quarter of 2011 which included a one-time gain from the sale of Sky Cable PDRs last year.
Excluding the one-time gain of P674 million, ABS-CBN's first quarter net income would have been 1% higher than last year's recurring income of P302 million.
Consolidated revenues from advertising and consumer sales grew by 8% to P7.1 billion in the first quarter. Advertising revenues saw a 4% jump to P4.2 billion in the January to March period, while consumer sales posted a 15% rise to P3 billion.
Sky Cable's revenues grew 12% to P1.2 billion in the first quarter, while ABS-CBN Global revenues rose by 3%, as it showed double-digit growth in subscribers in Canada and single digit growth in other markets, except Japan and Europe.
However, total operating and other expenses were up 10% year-on-year to P6.1 billion, due to higher production costs, cost of sales and services, and general and administrative expenses.
ABS-CBN chief finance officer Rolando Valdueza said the company is keeping its full-year net income target to P1.3 billion.
"We're setting a target of P1.3 billion, in terms of airtime we are up 1% but the challenge is our lunchtime slot plus the industry-wide ad spending is down by double digit," he said, in a press briefing.
Valbuena said the company is looking to keep its costs down for the rest of the year. "The production cost increased 25% last year, and now 10%, and the challenge is to keep it really in single digits for our costs," he added.
Based on Kantar National TV Ratings, ABS-CBN maintained its national audience share and ratings leadership, with prime-time audience share averaging 42% during the January to March period.
Meanwhile, buying the assets of Destiny Cable and 2 other companies is expected to boost the subscriber base of ABS-CBN's Sky Cable Corp., the Philippines’ largest cable television service provider
Valdueza said combining Destiny's 150,000 subscribers with Sky's 500,000 subscribers would give the company close to 45% share of the market.
On Friday, Sky announced it was buying the assets - cable TV and broadband - of Destiny, Solid Broadband Corporation, and Uni-Cable TV Inc. for P3.5 billion.
To finance the P3.5 billion acquisition, Valdueza said Sky will try to raise P2 billion in debt and P1.5 billion from equity fund raising.
ABS-CBNnews.com is the news website of ABS-CBN Corp.