ABS-CBN on track to hit income target

Media and entertainment firm ABS-CBN Corp. is on track to achieve its net earnings guidance of P2.7 billion to P3 billion this year even as net profit declined by 20 percent year-on-year in the January to September period.

“We are looking at hopefully, at least, closer to P3 billion (net earnings this year). Our (net income guidance) range has always been P2.7 billion to P3 billion,” ABS-CBN chief financial officer Aldrin Cerrado told reporters.

ABS-CBN’s net income reached P2.27 billion as of the end of September, down from P2.85 billion in the same period last year as consolidated revenues slid five percent to P29.51 billion.

Advertising revenues, in particular, dipped three percent to P15.3 billion. The decline in recurring advertising sales, however, was tempered by the 11 percent increase in consumer sales to P14.2 billion.

ABS-CBN attributed the growth in consumer sales to the strong demand for ABS-CBN’s digital terrestrial television (DTT) product TVplus and the increase in Sky’s direct-to-home and broadband subscription revenues.

Cumulative sales of the ABS-CBN TVplus digital boxes reached more than 3.6 million as of the end of the third quarter.

ABS-CBN was the first to make the shift to DTT from analog TV in the country through the launch of the TVplus digital boxes in 2015.

The TVplus digital boxes provide a better viewing experience through crystal clear picture and sound without any monthly and installation fee.

Revenues of ABS-CBN’s subsidiary Sky, which provides cable TV and broadband service, also went up seven percent to P6.85 billion.

Total costs and expenses for the nine-month period this year were flat at P26.85 billion as ABS-CBN implemented cost-control measures at the start of the year.