ABS-CBN EXPECTS CONSUMER SALES TO OVERTAKE ADVERTISING INCOME!

In a disclosure by Malaya, ABS-CBN chief Executive Officer Eugenio Lopez said he expects the consumer segment to overtake the growth in advertising. At present, 60 percent of revenues come from ads and 40 percent from the consumer segment.

Advertising segments include TV ads, Radio ads, Regional ads, Online ads and Cable ads, consumer sales on the other hand are sourced from Sky Cable, TFC, Star Cinema, ABS-CBN Publications, ABS-CBN Interactive and ABS-CBN Global. Digital Box distribution is the additional segment for consumer sales and is expected to boost profits for 2011.

"Our future is really in consumers," he added.

Rolando Valdueza, ABS-CBN chief operating officer, expressed optimism that, despite the absence of political advertisements this year, income would reach P3 billion this year on the back of higher ratings and strong ad revenues.

In the first quarter, ABS-CBN posted P976 million in net income, down 10 percent from the same period last year due to the absence of political advertisements.