MANILA, Philippines - (2nd UPDATE) ABS-CBN Corporation, the country's largest multi-media company reported a record 179% growth in net profit for the first half of the year at P2.265 billion, surpassing its P1.7 billion net earnings for 2009, driven by non-recurring political advertisements, higher airtime and consumer sales.
Its net revenue for the first half stood at P14.41-B, a 38% jump from a year ago.
For the second quarter, the company posted net earnings of P1.1-B from P600-M in 2009, an increase of 22%.
Revenue in the second quarter rose to P9 billion from P6.3 billion last year.
Last year, ABS-CBN registered a net income of P1.79 billion, thanks largely to revenue from early advocacy advertisements by politicians positioning themselves for the May polls.
"Our target of a P3-billion net income for the full-year of 2010 is achievable," said Rolando Valdueza, chief finance officer of ABS-CBN.
In the first half, ABS-CBN's consolidated advertising revenue, jumped by 71% from a year ago to P11.496 billion, of which P2.33 billion came from political advertisements in the months leading up to the national elections in May.
Consumer sales in the first semester totaled P5.34 billion, 8% higher from last year, mainly from ABS-CBN Global and Skycable.
Cable TV subscriptions from its global operations rose by 10%, ABS-CBN Global now has 2.1 million subscribers, with the bulk coming from the United States and the Middle East.
Skycable's revenue from cable TV and broadband services grew by 13%, as broadband subsciber count rose by 61% from a year ago.
Valdueza said even with the non-recurring revenue from political ads, the company is confident that its recurring revenue from regular ads will sustain the network's growth.
"For July and August alone which are considered a slow season, airtime sales is tracking a 30% growth," said Valdueza, adding that the company expects to get bigger revenue from September to December where ads normally pick up.
ABS-CBN also expects stronger growth from ABS-CBN Global as the company becomes more aggressive in increasing its penetration of customers in Europe and Canada.
Valdueza said ABS-CBN has allocated P3.4 billion in capital expenditures for 2010, of which P1.4 billion will be spent on installing new transmission equipment and other facilities.
ABS-CBN Corporation engages in television, radio, cable and satellite programming as well as interactive media, print publishing, content development, and post production services.
Expectations of hitting its full-year growth target sent shares of ABS-CBN soaring by as much as 7.7%, before closing up by 7.4% to P52.50 on Tuesday.