ABS-CBN Corp., the media holding company of the Lopez family, said its profit declined in the first nine months of the year mainly due to the lack of election-related spending that boosted bottom line in 2016.
ABS-CBN said yesterday that profit from January to September hit P2.3 billion, down 19.3 percent, compared to the same period last year. Revenue was also down 5.1 percent to P29.5 billion.
ABS-CBN also reported a 3-percent decline in nine-month recurring advertising revenue to P15.3 billion.
It downplayed the event, adding that consumer sales were up and it was on track to hit its profit target for the year.
“Advertising revenue picked up in the third quarter and we are optimistic that we will be able to sustain the momentum until the end of the year to hit our full-year net income target of between P2.7 billion and P3 billion,” ABS-CBN chief financial officer Aldrin Cerrado said.
ABS-CBN said consumer sales during the period hit P14.2 billion, up 11 percent.
“The robust growth in consumer sales was driven by strong demand for ABS-CBN TVplus digital boxes and an increase in Sky’s Direct-to-Home (DTH) and broadband subscription revenues,” it said.
ABS-CBN launched in early 2015 its Digital Terrestrial Television initiative (DTT), pioneering the transition from analog to digital TV.
About 36 percent of households in Mega Manila now have DTT boxes, while the figure for Metro Manila is about 40 percent, it said.
It also claimed a lead in television ratings.
ABS-CBN said it had implemented cost control measures since the beginning of the year. As a result, the nine-month costs and expenses were flat compared to year-ago level. —MIGUEL R. CAMUS