ABS-CBN completes 2 sound stages in Bulacan

ABS-CBN Corp. will start using its two sound stages in Bulacan in May, enabling the media and entertainment firm to cut production cost and produce more content.

“The sound stage will be operational by May,” ABS-CBN chief financial officer Aldrin Cerrado told reporters.

Located in Bulacan, the two sound stages cover 1,500-square meters each.

Cerrado said the use of the sound stages would mean savings in production costs of about 20 percent.

“At least, we know it will save us money on a specific program. The good thing is, when we save it, we have extra money to produce more content for the different platforms especially mobile,” he said.

Last year, production costs of ABS-CBN declined slightly or by 1.5 percent to P11.83 billion from P12.01 billion in 2016.

ABS-CBN attributed the lower production costs to the decline in program-related expenses by P227 million as a result of savings in rentals, specifically, technical and production equipment.

Lower licenses and royalties of program rights also contributed to the lower production cost.

ABS-CBN ended last year with net earnings of P3.16 billion, higher than its P2.7 billion to P3 billion guidance for the year.

Compared to 2016’s P3.53 billion, ABS-CBN’s net profit however, declined 10 percent due to lower revenues as there were no election-related advertising placements last year.

ABS-CBN is primarily involved in television (TV) and radio broadcasting, as well as in the production of programs.

In addition, it is involved in cable TV and broadband service, cinema production, merchandising and licensing, mobile and online multimedia services, glossy magazine publishing, video and audio post production, overseas telecommunication services, money remittance, cargo forwarding, TV shopping services, theme park development and management.