ABS-CBN may exceed full-year profit target

By Cathy Rose A. Garcia, ABS-CBNnews.com

Posted at Aug 13 2012 05:47 PM | Updated as of Aug 14 2012 05:47 PM

MANILA, Philippines (CORRECTED) - ABS-CBN Corp. on Monday said it may exceed its P1.3 billion net income target this year, as advertising revenues show signs of strengthening in the second half of the year.

In a briefing, ABS-CBN chief financial officer Rolando Valdueza said the company has been experiencing double-digit growth in airtime revenues beginning this month.

"We're also experiencing double-digit growth in terms of airtime starting August and if we can sustain this by the end of the year, and we're able to sustain performance of (ABS-CBN) Global, Sky Cable and Star Cinema, we may exceeed P1.3 billion. But at what level, it will depend on our performance in the coming months," he said.

ABS-CBN reported a net income of P927 million in the first half of 2012. This was 45% lower than the net income of P1.677 billion in the first half of 2011, which included a one-time gain from the sale of Sky Cable PDRs. Excluding the one-time gain, the net income in the first 6 months of 2012 would be 8% lower.

Consolidated revenues from advertising and consumer sales jumped 9% to P15.3 billion in the January to June period. Advertising revenues rose 5% to P9.2 billion in the first half, while consumer sales jumped 17% to P6.1 billion.

Sky Cable was a major driver of growth, with revenues increasing by 22% partly due to its acquisition of Destiny Cable. However, revenues from ABS-CBN Global was flat.

Total operating and other expenses rose 12% year-on-year to P12.5 billion on higher production costs, cost of sales and services , and general and administrative expenses.

Meanwhile, ABS-CBN said ratings received a boost from shows such as "Walang Hanggan," "Aryana" and "Please Be Careful With My Heart."

"Papa Chen and Jodi Sta. Maria's soap are turning out to be the biggest surprise hit," Vivian Tin, ABS-CBN vice president for research, said, referring to the stars of "Please Be Careful With My Heart," currently the highest-rating daytime soap.

ABS-CBN has maintained its national audience share and ratings leadership for urban audiences with prime-time audience share averaging 43% in the second quarter of 2012, a 14 percentage point lead over rival GMA, based on the Kantar National TV Ratings.

In June, ABS-CBN’s audience share for total Philippines (Urban + Rural) and total day was at 42%, a 10 percentage point lead over GMA.

In June, sixteen ABS-CBN shows were in the top 20 for total Philippines, including Walang Hanggan, Princess & I, Maalaala Mo Kaya, Wansapanataym, TV Patrol (Weekday), The X Factor Philippines (Saturday), Rated K Handa Na Ba Kayo?, Dahil Sa Pag-ibig and Kapamilya Deal or No Deal.

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