ABS-CBN income up 31% in Q1 2018
Louella Desiderio (The Philippine Star) - May 19, 2018 - 12:00am

MANILA, Philippines — Media and entertainment company ABS-CBN Corp. recorded a 31 percent increase in net income in the first quarter from a year ago on lower costs and expenses.

In a report to the Philippine Stock Exchange, ABS-CBN said it recorded a net profit of P411 million from January to March, up from the P314 million recorded in the same period last year.

ABS-CBN had higher net earnings for the first quarter even as revenue generated for the period declined by 5.9 percent to P9.01 billion from the previous year’s P9.58 billion.

Advertising revenue, in particular, slid by 10.2 percent to P4.35 billion as of end-March from P4.84 billion last year due to fewer advertising placements this year.

Consumer sales decreased by 1.5 percent to P4.67 billion in the first quarter from P4.74 billion a year ago due to lower theatrical receipts from global business and ABS-CBN Films, as well as lower revenue from Sky Cable’s business.

As ABS-CBN’s revenue declined year-on-year in the first three months, the firm also had lower costs and expenses for the period.

In particular, direct costs and expenses amounted to P8.77 billion this year, down 4.3 percent from the previous year’s P9.17 billion.

Production costs dipped slightly to P3.08 billion in the first quarter from P3.11 billion last year.

“The decrease was due to the reduction in the company’s facilities-related expenses and employee related costs amounting to P94 million or a four percent decline year-on-year,” ABS-CBN said.

Costs of sales and services, likewise, decreased slightly to P3.17 billion as of end-March from P3.18 billion a year ago.

ABS-CBN said it managed to reduce facilities and programming related expenses amounting to P41 million or 3.2 percent year-on-year.

Transaction costs also declined by P15 million or 69.3 percent, mostly coming from the slowdown of the remittance business.

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