ABS-CBN CORP EXPECTS TO HIT PROFIT TARGET FOR 2013!

MANILA - ABS-CBN Corporation expects growth to be "very positive" next year despite the absence of political advertisements, an executive said today.

"Obviously, there won't be any political advertising, but with the gross domestic product (GDP) growing at that rate hopefully consumer spending will be fueled by private spending and public spending, which actually will push consumer spending and this will help these consumer products -- Unilever, Procter&Gamble -- to hit their revenue targets," Aldrin Cerrado, ABS-CBN chief financial officer told reporters on the sidelines of a forum organized by Finance Asia.

"And if they are going to be bullish of the Philippines then they will have to do a lot of advertising not just ABS-CBN but also other networks," he said.

Philippine GDP grew by 7.6 percent in the first half of the year, exceeding the government's target of 6-7 percent for the entire 2013. A measure of economic performance, GDP is the amount of final goods and services produced in the country.

For next year, the government targets GDP growth of 6.5-7.5 percent.

Cerrado said ABS-CBN is on track to meeting its P2 billion profit guidance this year. In the first half of the year, the Lopez-owned network's earnings increased 44 percent to P1.339 billion from last year's P927 million.

Consolidated revenues reached P17.061 billion in the first six months, up 23 percent from last year's P13.838 billion. Advertising revenues reached P10.061 billion, while consumer sales hit P7 billion.

The broadcasting company booked P1.2 billion in political ad revenues during last May's elections.

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