ABS-CBN ADMITS WEAK NOONTIME RATINGS HINDER REVENUE GROWTH!

In a press briefing ABS-CBN chief finance officer Rolando Valdueza admits  that weak ratings in its noontime block offset growth in its advertising business. Valdueza stressed that in spite of  a 4% growth in its Advertising Income for the first quarter of 2012, the increase would have been better if not to the weak advertising income from its noontime block. ABS-CBN suffered drastic decrease in ratings on its noontime block in 2010 when it canceled Wowowee and Willie Revillame for the alleged disrespect to the Network's Executives. Since then ABS-CBN lost its National Leadership to rival GMA-7 due to the significant drop in Daytime Ratings.

ABS-CBN's adverting minutes in Daytime dropped significantly affecting its total Advertising Revenues. However, growth in its prime time advertising minutes help augment the drop in Daytime. Advertising revenues across all platforms and subsidiaries went up four percent to P4.2 billion.

ABS-CBN Corp. downgraded its net income projection this year to only P1.3 billion down from  P2.24 billion in 2011 and P3 billion in 2010 amidst growing expenses and industry-wide decline in advertising spending.

The company has earmarked around P5 billion for its capital expenditure program this year, majority of which or P2 billion will go to the continued expansion of the broadband business. Around P1.2 billion will be channeled to flagship station Channel 2. Another P1 billion will be used to acquire film rights while P700 million will go to the launch of its digital terrestrial TV.

TV NETWORK WAR ORIGINAL