| ABS-CBN Broadcasting Corp. reported a 138-percent hike in its first-quarter net profit to P280 million from P118 million in the same period last year.
The strong improvement was driven by higher airitme revenues and sale of services, the company said Thursday.
Gross airtime revenues went up by 20 percent on the back of higher advertising volume as well as political ads. Combined sale of services and sale of goods of subsidiaries also posted a healthy growth of 16 percent to P1.38 billion, driven by strong performance of ABS-CBN Global and ABS-CBN films.
“The first-quarter revenue was mostly driven by the parent company. In the second quarter, we are already seeing part of it, meaning the performance of the parent company continues,” said ABS-CBN vice president for finance Miguel Navarrete.
Operating income grew 38 percent to P532 million, resulting in an operating margin of 13 percent against 10 percent in the same period last year.
Earnings before interest, taxes, depreciation and amortization (Ebitda) went up by 29 percent to P1.119 billion.
Navarette said it is too early to tell if the company will be able to hit its target P1-billion net profit this year.
“It is too early to say. It depends on the balance of the year,” he said.
The surge in profits was also attributed to an improved programming which resulted in higher audience share and lower operating expenses.
As of end-March, ABS-CBN Global had 1.6 million viewers worldwide, up 18 percent from a year earlier.
Its audience share in Metro Manila for the whole day stood even with rival GMA Network Inc. at 38 percent. In Mega Manila, ABS-CBN’s audience share continued to improve, averaging 36 percent in the first quarter.
Navarrete said the company is now negotiating with customers for an increase in advertising rates, possibly within the quarter.
“Negotiations occur on a per client basis. It depends on the volume committed and the performance in previous years. We are still in the middle of the discussions,” he said.
Capital expenditures (capex) during the first three months of the year stood at P228 million. Navarrete said the company is on track to the P1.5-billion spending level announced earlier.
“We have the cash necessary to finance all the investments,” he said.
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