THE consolidated net income of ABS-CBN Corporation
jumped by P1.5 billion or 87% to P3.2B in 2010. ABS-CBN delivered consolidated revenues of P32.2B from advertising and consumer sales, posting an increase of P7.3B or 30% year-on-year.
Advertising revenues rose 50% or P7.3 in 2010, reaching P21.7B. This increase is attributable to the surge in total advertising minutes sold, programmed rate increase that took effect in February 2010, and political advertisements.
Consumer sales in 2010 amounted to P10.4B, posting a slight 1% increase or P60 million from a year ago, mainly from SKYCable. SKYCable contribution share to total consumer sales increased to 38% with it its subscription and service revenue contributing P3.9B, or P348M more than 2009. ABS-CBN Global’s contribution share amounted to 49%, while that of ABS-CBN Film Production Inc. or Star Cinema amounted to 13%.
Total expenses grew by P3.8B or 20% year-on-year to P23.4B, driven mostAly by higher production costs and general and administrative expenses (GAEX).
Total production costs in 2010 rose by P1.6B or 25% to P7.9B, as ABS-CBN strategically increased programming hours of in-house produced primetime dramas, afternoon programs and variety shows. GAEX rose 32% or P2.0B year-on-year to P8.2B, inclusive of P1.3B one time expenses for performancebased pay and nonrecurring corporate initiatives. Net income attributable to shareholders for 2010 is P3.2B, a P1.5B or 87% improvement over last year’s net income.
Earnings before interest, taxes, depreciation and amortization (EBITDA) reached P8.6B, yielding an EBITDA margin of 27% for 2009, and 33% or P2.1B better than 2009 EBITDA of P6.5B. Capital expenditure and film and program rights acquisition in 2010 amounted to P3.7B, P738M or 25% higher than the level of spending from previous year.