ABS-CBN profit plunges 40% in 2018

MANILA, Philippines — Listed media and entertainment giant ABS-CBN Corp. saw its earnings plunge by 40 percent to P1.91 billion in 2018 from P3.16 billion in 2017 on higher expenses and lower revenues.

The company generated consolidated revenues of P40.1 billion last year, down 1.4 percent from P40.7 billion the previous year.

About 51 percent of ABS-CBN’s revenues for the year came from advertising, while 49 percent were from consumer sales.

ABS-CBN said advertising revenues decreased by P716 million or 3.4 percent due to fewer advertising placements.

Consumer sales, meanwhile, increased by P149 million, resulting mainly from a 26 percent year-on-year increase in ABS-CBN TVPlus boxes sold.

ABS-CBN TVPlus boxes sold in 2018 reached 2.5 million, 529,000 thousand more compared to the previous year.

The company’s direct costs and expenses last year amounted to P37.94 billion, higher by P1.36 billion from 2017, while production cost also went up by P511 million.

“The movement was attributable to separation costs of closing down certain regional stations of the company. Other additional costs were licenses fees for sports programs which increased by P206 million and film rights amortization which increased by P140 million as a result of program rights acquisitions,” ABS-CBN said.

ABS-CBN categorizes its operations primarily into media networks and studio entertainment; cable, satellite and broadband; digital and interactive media; and consumer products and experiences.