MANILA, Philippines - ABS-CBN Corp. on Thursday reported lower first quarter earnings due to the absence of election-related advertisements.
The country's largest multimedia conglomerate said consolidated net income during the first 3 months of 2011 fell 10% from a year ago to P976 million as revenues went down 15% to P6.6 billion.
However, stripping out one-time gains, core net income was P302 million, up 12% versus last year's recurring earnings of P269 million, ABS-CBN chief finance officer Rolando Valdueza said in a briefing.
Valdueza said advertising revenues for the period declined 21% to P4 billion. Taking out placements made by political candidates running for last year's elections, advertising revenues this year went up 10% due to higher minutes sold and a programmed rate increase.
Consumer sales, in the meantime, fell 5% to P2.5 billion on a 15% decline in revenues of ABS-CBN Global, which was hit by the appreciation of the peso against the US dollar and a cut in subscriber base.
ABS-CBN's total expenses fell 13% to P4.7 billion due to cost management efforts, while capital expenditures surged 82% to P886 million.
ABS-CBN said it maintained its national audience share and ratings leadership with prime-time audience share averaging 41% in the first quarter, based on Kantar Media National TV Ratings' figures.
For 2011, the Lopez-led company has set a profit target of P3.1 billion to P3.2 billion.