ABS-CBN bullish on P2-B income target in 2013
MANILA – ABS-CBN Corp. remains confident that it will meet its target of P2 billion in consolidated net income set for 2013.
Aldrin Cerrado, chief finance officer at ABS-CBN, said on Thursday that the media conglomerate is on track to meet its profit guidance for the year as revenues surged 23 percent on the back of higher regular advertising revenues and election-related advertising.
"We will meet our profit guidance which is P2 billion," he said.
ABS-CBN’s net income in the first half of the year saw a 44-percent increase from P927 million in the same period last year to P1.34 billion.
ABS-CBN booked P1.2 billion of election-related ads in this period, and the share of airtime revenues to total revenues increased from 56 percent to 59 percent. The share of consumer sales, however, slid from 44 percent to 41 percent.
The Lopez-led firm is also optimistic about 2014, despite the lack of political ads next year.
"There will be no political advertising next year. But with the GDP growing at that rate, hopefully consumer spending will be fueled by private spending and public spending," said Cerrado.
He noted that higher consumer spending will ramp up advertising of consumer-oriented companies.
"Higher GDP will push consumer spending and then will help Uniliver, P&G to hit their revenue targets and they have to do a lot of advertising not just in ABS-CBN but also in other networks," Cerrado said.
Cerrado also said ABS-CBN’s global arm will continue to be a key contributor. Last year, global operations chipped in an estimated P4.5 billion of the company's total revenues that amounted to P29 billion.
Tie-ups with Mexican company Kidzania and Globe Telecom Inc. will also contribute to next year's performance.
"We have a lot of business going on right now, other than our core business which is our broadcast business. We are very positive on our Kidzania as well as our mobile business next year," said Cerrado.
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