ABS-CBN nets close to P1billion for 1Q of 2011

The consolidated net
income of ABS-CBN
Corporation ("ABS-CBN"
or the "Company") (PSE:
ABS, ABSP), the country's
largest multimedia conglomerate, registered P976 million for the first three
months of the year ending March 31, 2011.
"ABS-CBN delivered consolidated revenues of P6.6 billion from advertising
and consumer sales, a 15% decline compared to a year ago. Less the
revenues from political advocacies and advertisement from the first quarter
of 2010, consolidated revenues in the first quarter of 2011 increased by 3%
year-on-year.
"ABS-CBN's advertising revenues declined 21% or P1.billion to reach P4
billion. Minus the revenues from political advocacies and advertisement in
the first quarter of 2010, advertising revenues in the first quarter of 2011
increased by 10% year-on-year. This increase is attributable to the rise in total
advertising minutes sold and programmed rate increase that took effect in
February 2011.
"Consumer sales for the first quarter of 2011 amounted to P2.5 billion,
posting a 5% decrease or P147 million less from a year ago, mainly from ABS-
CBN Global. ABS-CBNGlobal revenues declined by 15% year on year in peso
terms due to the decline in subscribers and the appreciation of the Philippine
peso against the US dollar. Meanwhile, Sky Cable continues to contribute
positively with revenues increasing by 6% to P1 billion. This is mostly driven by
the increased take up of its broadband service subscriptions which increased
by 31% year-on-year.
"Total expenses declined by P721 million or 13% year-on-year to P4.7 billion
partly due to the lower cost of sales and services and general and
administrative expenses (GAEX).
"Net income attributable to shareholders for the first quarter of 2011 is at
P976 million, inclusive of the gain on sale of Sky Cable Philippine Depositary
Receipts (PDRs), a 10% decline year-on-year. Removing the effects of this
one-time gain in the first quarter of 2011 and P1.40 billion revenues
generated from political advocacies and political advertisement in the first
quarter of 2010, net income would have increased by 12% year-on-year.
"Meanwhile, earnings before interest, taxes, depreciation and amortization
(EBITDA) hit P2.1 billion, a 14% decline year-on-year. Stripping the one-time
gain in the first quarter of 2011 and equally shaving the P1.40 billion
revenues generated from political advocacies and political advertisement in
the first quarter of 2010, EBITDA would have grown by 6% year-on-year
"Capital expenditure and film and program rights acquisition for the first
quarter of 2011 amounted to P886 million, P400 million or 82% higher than
the level of spending from previous year. These are all programmed
expenditures to increase the company's capacity to produce additional
shows.
"ABS-CBN maintained its national audience share and ratings leadership with
primetime audience share averaging 41% in the first quarter of 2011, going by
Kantar Media National TV Ratings' figures.
"For the period January to March 2011, all six of ABS-CBN's primetime week-
day shows were in the Top 6: Emil Cruz Jr.'s Mara Clara, Pablo S. Gomez's
Mutya, Minsan Lang Kita Iibigin, Noah, TV Patrol and Imortal. The same
trend was repeated in the week-end where ABS-CBN's primetime week-end
shows also dominated the top programs: Pilipinas Got Talent (Saturday and
Sunday edition), Wansapanataym: Ulo, Kokak, Family Tree, and Buhawi Jack,
Maalaala Mo Kaya, Rated K Handa Na Ba Kayo?, and Goin' Bulilit.
"Primetime programs launched in the first quarter of 2011--Mutya and
Pilipinas Got Talent--enjoyed national program ratings in the 30s, and
audience share in the high 40s.
"ABS-CBN Global's overall viewer count decreased by 3% year-on-year,
driven by the decline in subscriber growth in the Middle East, Europe and
Japan. Double digit subscriber growth continued to be experienced in
Canada, and mid-to-high single digit subscriber growth in Asia-Pacific and
Australia.
"ABS-CBN Film Productions, Inc. released five films in the first three months
of this year, two more than the same period in 2010. Three of them--Ang
Tanging Ina Mo (Last Na 'To), Dalaw and Catch Me I'm in Love--topped P100
million in box office receipts, earning blockbuster status by local standards.