Saturday, 20 June 2009

During "recession" -- ABS-CBN posts record P300-m profit

Follows GMANews' profit during "recession" of P1B
Jenniffer B. Austria
Manila Standard
http://www.manilastandardtoday.com/?page=business3_june19_2009

BROADCASTING network ABS-CBN Broadcasting Corp. booked a record net income of P300 million in May, up 54 year-on-year.

ABS-CBN chairman Eugenio Lopez II said the company’s performance in the second quarter improved compared with a 21-percent profit drop in the first quarter.

But Lopez said the network kept its forecast of a flat growth in net income for the whole year because of the volatille economy.

“It looks good but I don’t want to make changes in our projections since the volatility of the economy is something that nobody can predict,” Lopez said. “But in the second quarter, we are experiencing the kind of growth rates that we used to experience at our height. But we don’t know if this will drop in the coming months.”

ABS-CBN chief finance officer Ronaldo Valdueza said the company expects airtime revenues in the second quarter to hit P1.2 to P1.3 billion. Airtime revenues in May exceeded P1.4 billion.

Political ads boosted the company’s airtime revenues, with sales reaching P100 million for the first six months of the year.

ABS-CBN earlier reported a 21-percent drop in first quarter net income to P191 million from P242 million on year.

Consolidated revenues grew 24 percent to P5.29 billion as the lower airtime sales were offset by contributions of P878 million from cable business SkyCable.

Despite the flat net income, Valdueza said the broadcasting firm’s cash flow increased 20 percent to P2.6 billion in the first five months of the year.

ABS-CBN plans to spend P3.3 billion in capital expenditure this year.

The company is alloting P900 million for SkyCable, which is aggressively expanding into broadband.

ABS-CBN is earmarking P700 million for film rights acquisition and P1.7 billion for equipment upgrade.

ABS-CBN’s rival, GMA Network Inc., earlier reported a P1-billion net income in the first five months of the year, up 22 percent from P890 million on year.

1 comment:

  1. It's interesting that both ABS-CBN and GMA Network are doing really well during this recession. I guess it's the political ads that really help improve their income. Philippine politics is a funny game!

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