MANILA, Philippines - ABS-CBN Corp., the country's largest multimedia conglomerate, said its 2010 net income rose 87%!
ABS-CBN posted a consolidated net income of P3.2 billion last year, exceeding its income guidance by P200 million.
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 49% with it its subscription and service revenue contributing P3.9 billion, or P348 million more than 2009. ABS-CBN’s Global contributionshare amounted to 38%, 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.