ABS-CBN net income jumps to 87 percent in 2010 to P3.2 billion

According to ABS-CBN, Star Cinema movies that earned more P100 million include (from top to bottom) I Love You Goodbye, Miss You Like Crazy, Here Comes the Bride, and My Amnesia Girl. The Metro Manila Film Fest entries shown last December 2010 will be reflected in the succeeding fiscal year.


"The consolidated net income of ABS-CBN Corporation ("ABS-CBN" or the "Company") (PSE: ABS, ABSP), the country’s largest multimedia conglomerate, jumped by P1.5 billion or 87% to P3.2 billion in 2010.
ABS-CBN delivered consolidated revenues of P32.2 billion from advertising and consumer sales, posting an increase of P7.3 billion or 30% year-on-year.

"ABS-CBN’s advertising revenues rose 50% or P7.3 in 2010 reaching P21.7 billion. This increase is attributable to the surge in total advertising minutes sold, programmed rate increase that took effect in February 2010 and political advertisement.

"Consumer sales in 2010 amounted to P10.4 billion, posting a slight 1% increase or P60 million from a year ago, mainly from Sky Cable. Sky Cable contribution share to total consumer sales increased to 38% with it its subscription and service revenue contributing P3.9 billion, or P348 million more than 2009. ABS-CBN’s Global contribution share amounted to 49%, while ABS-CBN Film Production, Inc., better known as Star Cinema, contribution share amounted to 13%.

"Total expenses grew by P3.8 billion or 20% year-on-year to P23.4 billion, driven mostly by higher production costs and general and administrative expenses (GAEX). Total production costs in 2010 rose by P1.6 billion or 25% to P7.9 billion, as ABS-CBN strategically increased programming hours of in-house produced primetime dramas, afternoon programs, and variety shows to meet viewer needs and advertiser demand. GAEX rose 32% or P2.0 billion year-on-year to P8.2 billion, inclusive of P1.3 billion one-time expenses for performance-based pay and non-recurring corporate initiatives.

"Net income attributable to shareholders for 2010 is P3.2 billion, a P1.5 billion or 87% improvement over last year’s net income.

"Earnings before interest, taxes, depreciation and amortization (EBITDA) reached P8.6 billion, yielding an EBITDA margin of 27% for 2009, and 33% or P2.1 billion better than 2009 EBITDA of P6.5 billion.

"Capital expenditure and film and program rights acquisition in 2010 amounted to P3.7 billion, P738 million or 25% higher than the level of spending from previous year.

"ABS-CBN maintained its national audience share and ratings leadership with total-day audience share averaging 43% in 2010, going by Kantar Media National TV Ratings’ figures.

"ABS-CBN’s programs continued to dominate the Top 20 programs list. In 2010, ABS-CBN programs held over 15 of the top 20 slots for weekdays and top weekends. Weekday and week-end entertainment programs launched or aired in 2010—Agua Bendita, Dahil May Isang Ikaw, Habang May Buhay, Imortal, Kokey@Ako, Kung Tayo’y Magkakalayo, Mara Clara (remake), Noah, Pilipinas Got Talent, Tanging Yaman, Wansapanataym, Rosalka and the Agimat Series with Ang Mahiwagang Daigdig ni Elias Paniki, Pepeng Agimat, Tiagong Akyat and Tonyong Bayawak—kept the audience enthralled and enjoyed national program ratings prominence in their respective timeslots.

"The high-rating entertainment shows were ably complemented by erstwhile but constantly relevant and evolving news and current affairs shows- Bandila, Matanglawin, Rated K, TV Patrol, Umagang Kay Ganda, to name a few. These programs have become a staple not only in the delivery of news but also a source of knowledge.

"Sky Cable pursued its thrust to enhance viewing experience for its customers with continued move towards digitization. Together with the introduction of a tiered pricing mechanism, penetration rates in cable TV viewing steadily improved.

"In 2010, Sky Cable also launched the Sky Broadband Ultra High Speed Internet connection subscription that offers speeds of up to 112 mbps. This offering greatly complemented the revolutionary online access to entertainment product- iWantv, which also originated in 2010.
ABS-CBN Global’s overall viewer count increased by 2% year-on-year, with strong double-digit subscriber growth in cable TV subscriptions. With new cable distribution partnerships driving subscriber acquisition, overall subscriber count grew at a double-digit rate in Canada. In Australia, satellite TV subscriber generated a 10% growth as affordable and flexible plans continued to attract new direct-to-home subscribers.

"ABS-CBN Film Productions, Inc. continued to produce and or co-produce compelling genres that are well received by the public. In 2010, a total of twelve movies were released with four of them—I Love You, Goodbye, Miss You Like Crazy, Here Comes the Bride, and My Amnesia Girl—exceeding P100 million in box office receipts and earning local blockbuster status."


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