ABS-CBN posts lower

ABS-CBN Corporation, the country’s leading media and entertainment company, reported that its net income dipped to R3.16 billion last year from the election-boosted earnings of R3.5 billion in 2016.

“Overall, we are pleased with our performance for 2017 and we are particularly happy to have exceeded our guidance for net income,” said ABSCBN Chief Financial Officer Aldrin Cerrado.

Consolidated revenues rose to R40.7 billion in 2017 from the R38.3 billion registered in the previous year. “Top line revenue growth, boosted by a healthy increase in consumer sales, was about 9 percent,” added Cerrado.

ABS-CBN adopted the cost per individual rating point pricing (CPIRP) scheme in 2015, which rewards the company for an increase in ratings. After a banner year in 2016, ABS-CBN continued to deliver strong ratings performance in 2017.

“This is even more important now that, with CPIRP, improved ratings directly translate to increased revenues. At the same time, we have continued to implement cost efficiency measures which have enabled us to keep costs within manageable levels,” said Cerrado.

As a result, the total costs and expenses for 2017 were flat compared to the previous year. ABS-CBN was also successful in its continuing efforts to control production costs, with a 2 percent reduction on a cost per hour basis.

The company saw record sales of its Digital Terrestrial Television (DTT)