ABS-CBN profit hits P2 billion in 2013

Posted at 04/10/2014 3:05 PM | Updated as of 04/11/2014 11:41 AM
ABS-CBN executives Raymund Miranda, Aldrin Cerrado, Ron Valdueza, Rick Tan, and Paz Balayan at the ABS-CBN investors' briefing.

MANILA, Philippines (UPDATE) – Leading media and entertainment company ABS-CBN Corp. reported a 25 percent increase in its net income in 2013 on the back of election-related spending.

The Lopez-led company posted a net income of P2.028 billion in 2013, an increase of 25 percent from the P1.62 billion profit it reported for 2012.

ABS-CBN Corp. chief financial officer Aldrin Cerrado said election advertisements boosted revenues by 15 percent to P33.4 billion in 2013 from P28.9 billion in 2012.

Cerrado noted that without the boost from election spending, revenues grew by 9 percent.

ABS-CBN also forged several partnerships in 2013, including deals with Orbit Showtime Network (OSN) in the Middle East and with the owners of Mars Ravelo properties.

The OSN deal broadened ABS-CBN's network, through The Filipino Channel, in the Middle East, adding around 50,000 customers

The 15-year Mars Ravelo deal, meanwhile, gave ABS-CBN exclusive rights to produce shows featuring characters of the graphic novelist.

"Our company's solid financial performance for 2013 was boosted by our dominance in national ratings which allowed us to capture a bigger share of the advertising spending in the country, election-related spending, and various initiatives within the company to be more cost-efficient," Cerrado said.

The top 10 free-to-air television programs in 2013 were all produced by ABS-CBN, according to Kantar Media.

Cerrado noted that most of these shows, including “Juan dela Cruz,” and “Ina, Kapatid, Anak,” aired daily at primetime slots, which meant that it generated more revenue compared to weekly shows.

For 2014, Cerrado said the company expects net income to range between P1.8 billion to P2 billion.

He said the firm is expecting a "busier" 2014 following the 2013 fourth quarter launch of O Shopping Channel and ABS-CBN Mobile.

O Shopping is a joint venture between ABS-CBN and Korea’s CJ O Shopping Corporation Ltd., one of the world's largest home shopping companies.

ABS-CBN Mobile started operating in November 2013, but the company did not have to spend in setting up telecom networks as it leased capacity from Globe Telecom.

"These two initiatives are in full swing, and we are currently working on an educational theme park, Kidzania, which will open during the first quarter of 2015," added Cerrado.

The listed company also announced that the 2013 performance resulted to a P0.60 per share cash dividend, which is payable to shareholders on May 7, 2014.

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