Lopez-led network eyes windfall from campaign ads
ABS-CBN Corp., led by the Lopezes, remains confident of earning a windfall from campaign ad placements in 2013, despite the possible negative effects of a Commission on Elections (Comelec) ruling that limits the airtime for politicians.
Officials on Thursday also said revenues from regular advertisers would also continue to surge, in view of the continuing growth of the economy.
“If you look at the first three months, it’s significantly better than the last quarter of last year and even the same quarter in 2007,” ABS-CBN chief financial officer Rolando Valdueza said, comparing the company’s performance so far this year with 2007, the last time mid-term elections were held.
Earlier, ABS CBN reported a net income of P1.71 billion for 2012, down by 29 percent from P2.42 billion in 2011.
Removing the effects of the gain from the sale of investments recognized in 2011 amounting to P1.032 billion, its recurring net income rose by 23 percent.
“The growth in recurring income was fueled by strong advertising revenues and consumer sales,” it said in a statement.
ABS-CBN posted a consolidated revenue of P31.7 billion from advertising and consumer sales, a 13 percent increase from year-ago level.
ABS-CBN’s advertising revenue reached P19.1 billion, an increase of 8 percent from a year ago.
Consumer sales amounted to P12.7 billion, posting a 19 percent increase. Sky Cable remained a major driver of growth with revenue rising by 32 percent to P5.9 billion.
“The growth in revenues is partly attributable to the acquisition of Destiny Cable,” the company said.
Total operating and other expenses increased by 12 percent to P26.2 billion brought about by increases in production costs, cost of sales and services, and general and administrative expenses. Paolo G. Montecillo
