ABS-CBN expects lower earnings for 2017

LOPEZ-LED ABS-CBN Corp. is expecting “slightly lower” earnings this year amid lack of election-related spending which helped boost its bottom line in 2016.

The listed media and entertainment giant recorded a P3.5-billion net income in 2016, up 39% from the P2.5 billion seen in 2015 as electionrelated advertising drove revenues higher.

“For 2017, it’s a bit early [to tell] we’re looking at our January results, but I would say, obviously, it would not be lower than P3 billion, so it would be in that vicinity also,” ABS-CBN Chief Financial Officer Aldrin M. Cerrado told reporters on Monday when asked for the company’s income guidance this year.

In 2016, advertising revenues, boosted by election-related spending, rose 11% to P23.65 billion from P21.26 billion while revenue from its consumer business — which includes ABS-CBN events, theme park KidZania, home shopping service O-Shopping, and ABS-CBN store — jumped 6% to P17.98 billion from a year ago’s P17.01 billion.

“[Slightly lower] than last year probably because of the election-related spending that we will not have this year, but we’re hoping that the regular advertising will still grow, at least for TV and more live events,” Mr. Cerrado said.

He noted ABS-CBN is bringing its popular variety shows ASAP and It’s Showtime to Toronto and Las Vegas, respectively, since there is potential for advertising revenues from live events. By segment, ABS-CBN reported that operating revenues from media networks and studio entertainment saw a 7% uptick to P30.56 billion, while cable, satellite and broadband went up 8% to P8.76 billion. Digital and interactive media’s operating revenues went up 10% to P781 million, while consumer products and experiences saw a surge to P1.52 billion in 2016 from P971 million in 2015.

In its free-to-air business, ABS-CBN reported a 15% rise in its advertising revenue last year to P22.4 billion from P19.4 billion.

The network’s total assets rose to P72.7 billion last year compared to P69.9 billion in 2015.

ABS- CBN’s SkyCable, meanwhile, saw an 8% growth in revenues, driven by the introduction of SkyDirect, its newly launched Direct- to- Home Pay TV offering, and the continued sharp increase in its broadband subscriber base. By year end, the company had over 112,000 SkyDirect subscribers and more than 200,000 broadband subscribers, bringing Sky’s total subscriber base to over one million.

Shares in ABS-CBN rose 30 centavos or 0.65% to end Tuesday’s trading at P46.30 apiece. —