ABS-CBN 9-mo net down 35%

Media giant ABS-CBN Corp. saw earnings drop in the nine months through September this year as revenue was relatively flat while costs increased.

From January to September 2018, ABS-CBN posted a net income of P1.48 billion, down almost 35 percent. Total revenue slid by 0.1 percent to P29.5 billion.

The company’s main television advertising business, which accounted for about half of total revenue, declined 2.8 percent to P14.88 billion. The rest came from consumer sales, which went up by 2.9 percent to P14.6 billion.

ABS-CBN said there were “fewer advertising placements.” On the other hand, consumer sales were propped up by the sale of its TVPlus boxes as the company continued its digital television rollout.

This came even as SkyCable saw revenue drop 2.8 percent as cable subscribers declined. ABS-CBN noted that the overall subscription business of Sky went up by 450,000 during the nine-month period as viewers shifted to its direct-to-home business.

ABS-CBN also saw costs increase 5 percent to P28.19 billion. Of note was the 7.8-percent jump in production costs. ABS-CBN cited amortization expenses apart from higher facilities and employee-related costs. General and administrative costs also went up by 8.4 percent as it invested in “content building, information security measures, and digital initiatives.”

https://business.inquirer.net/260654/abs-cbn-9-mo-net-down-35

ABS-CBN, GMA Network 3rd quarter earnings decline on lower ad revenues

MEDIA companies ABS-CBN Corp. and GMA Network, Inc. reported lower earnings in third quarter, due to a slump in advertising revenues.

In a regulatory filing, ABS-CBN said its net income attributable to equity holders of the parent company dropped 19% to P776.9 million during the July to September period.

The Lopez-led media company said its third quarter revenues grew by 4% to P10.6 billion, as advertising sales fell 2% to P5.302 billion.

For the first nine months of 2018, ABS-CBN saw its attributable net income decline by 32% to P1.627 billion.

Consolidated revenues for the January to September period was flat at P29.49 billion, from P29.51 billion a year ago. Advertising revenues also dipped 3% to P14.87 billion, while consumer sales rose 3% to P14.6 billion on a 24% rise in sales of TV Plus boxes.

ABS-CBN recorded a 5% rise in direct costs and expenses during the nine-month period at P28.190 billion. This was attributed to a 8% growth in production costs at P9.56 billion and 8.4% hike in general and administrative expenses at P8.892 billion.

Meanwhile, in a regulatory filing, GMA Network reported its attributable net income went down 4% to P738.28 million during the third quarter, as revenues declined by 5% to P3.892 billion.

During the January to September period, GMA Network reported its attributable net income slumped 15% to P1.9 billion, amid 6% lower revenues to P11.142 billion. Consolidated operating expenses dipped 2% to P8.4 billion during the first nine months.

GMA Network said its year-to-date sales from television and radio airtime, which is 88% of the company’s revenues, dipped 6% to P9.845 billion.

“[T]he contraction in airtime advertising was felt across the broadcasting industry thus providing the main drag for the revenue shortfall. Nonetheless, mixed results were seen among airtime-revenue generating platforms, Radio and Regional TV operations remained steadfast, managing to pull ahead in their topline year-on-year, while Ch-7 and GNTV-11 succumbed to lukewarm sales in between periods,” it said.

PNB Securities, Inc. President Manuel Antonio G. Lisbona said the drop in earnings for both companies only shows that advertisers are shifting to online platforms.

“Looking at both companies’ stock prices even for the last 24 months, you can see that both have been declining steadily because of this. That said, both companies have also begun shifting and diversifying into the online space,” he said in a text message on Thursday.

GMA said sales from international operations, subsidiaries and other businesses led by its digital arm GMA New Media grew 2% to P1.297 billion in the nine-month period. For ABS-CBN, its digital platforms delivered consolidated revenues of P627 million, up 46% from last year. — Denise A. Valdez

Duterte extends MBC franchise by 25 years

THE franchise of the Manila Broadcasting Company (MBC), owner of radio station dzRH, has been extended by President Rodrigo Duterte by another 25 years.

Duterte signed Republic Act 11109 on October 30, copies of which were given to members of the media only on Thursday.

The franchise will be renewed for 25 years, unless the order is revoked or canceled sooner. It will be deemed ipso facto (by fact) revoked if the corporation failed to operate continuously for two years.

MBC should secure the appropriate permits and licenses for the construction and operation of its stations or facilities.

The House of Representatives passed the bill on Aug. 29, 2018, while Senate passed its own version on Aug. 15, 2018.

MBC is owned by Fred J. Elizalde and the FJE Group of Companies, which operates the amusement park Star City. Elizalde is also the chairman and president of Philippine International Corp., Elizalde Holdings Corp. and Northern Capiz Agro-Industrial Development Corp.

MBC operates the oldest radio station in the country, dzRH. It also operates numerous FM radio stations, including Love Radio, WRocK and Yes FM.

Also on October 30, Duterte extended the franchises of Bright Star Broadcasting Network Corp. and the Vanguard Radio Network Co., by 25 years.

The former owns Like FM 105.9, while the latter runs 95.9 Big Sound FM.

https://www.manilatimes.net/duterte-extends-mbc-franchise-by-25-years/468228/