ABS-CBN's 9-mo. net profit slips 23% to P2.24B

ABS-CBN Corporation, the country’s largest multimedia conglomerate, reported a 23 percent drop in net income in the first nine months of 2011 to P2.24 billion from the P2.9 billion earned in the same period last year due to a slowdown in corporate spending on advertising.

Consumer sales for the nine months of 2011 amounted to P7.8 billion, posting a 1 percent decline from a year ago. ABS-CBN Global revenues declined by 11 percent year on year in peso terms due to the decline in subscribers and the appreciation of the Philippine peso against the US dollar.

Meanwhile, Sky Cable continues to contribute positively with revenues increasing by 10 percent to P3.2 billion. This is mostly driven by the increased take up of its broadband service subscriptions which increased by 21 percent year-on-year.

Total operating and other expenses dropped by P1.4 billion or 8 percent year-on-year to P16.0 billion. This was partly a result of lower cost of sales and services and general and administrative expenses (GAEX) as the company continued its effort to manage and control expenses.

The decline in both expense accounts more than made up for the increase in total production costs due to the Company’s drive to produce quality and innovative programs.

source: MB

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