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.”