Abs-Cbn Industry Analysis
In Partial Fulfillment of the Requirements in
MGT 119 – Business Policies and Strategies
Industry analysis on ABS-CBN
Submitted By:
Domino Dondon V. Ragasa
BSBA III
Romeo Juanito Valdez
BSBA IV
Jubelle Ujano
BSBA III
Submitted to:
Mrs. Gladys B. Solomon
July 10, 2009
LOPEZ family-controlled ABS-CBN Corp. said it expects profitability throughout the year with the support of its airtime revenue after gaining in the first quarter of the year. In a briefing, Geronimo C. Estacio, ABS-CBN officer in charge for Finance, said profits for the full-year of 2006 may come from its airtime revenue, given the higher rating of the network’s primetime shows. Estacio said ABS-CBN posted a net income of P121 million in the first quarter of the year from P132-million losses in the same period in 2005. In the first three months of the year, ABS-CBN audience share averaged 32 percent compared with 43 percent of its rival GMA channel 7. On primetime, ABS posted 35 percent share from 36 percent compared with GMA’s 43 percent from 46 percent. The company attributed its profit turnaround to the lower cost base that resulted from last year’s manpower optimization and judicious production cost spending, as well as from license fees for the migration of North American DTH (direct-to-home) subscribers to DirectTVs platform. License fees from DTH amounting to P409 million were booked in the first quarter of the year. Total subscriber base of ABS-CBN Global grew by 22 percent year on year, which translates to 2.1 million viewers worldwide by-end March. The Lopez-led company also said airtime revenues, which accounts for 60 percent of the total, grew 4 percent to P2.26 billion in the first quarter of the year from P2.18 billion in the same period in 2005 as it continued to strengthen its primetime programs. Gross revenue rose by 14 percent to P3.95 billion, driven by license fees from DirectTV and higher
MGT 119 – Business Policies and Strategies
Industry analysis on ABS-CBN
Submitted By:
Domino Dondon V. Ragasa
BSBA III
Romeo Juanito Valdez
BSBA IV
Jubelle Ujano
BSBA III
Submitted to:
Mrs. Gladys B. Solomon
July 10, 2009
LOPEZ family-controlled ABS-CBN Corp. said it expects profitability throughout the year with the support of its airtime revenue after gaining in the first quarter of the year. In a briefing, Geronimo C. Estacio, ABS-CBN officer in charge for Finance, said profits for the full-year of 2006 may come from its airtime revenue, given the higher rating of the network’s primetime shows. Estacio said ABS-CBN posted a net income of P121 million in the first quarter of the year from P132-million losses in the same period in 2005. In the first three months of the year, ABS-CBN audience share averaged 32 percent compared with 43 percent of its rival GMA channel 7. On primetime, ABS posted 35 percent share from 36 percent compared with GMA’s 43 percent from 46 percent. The company attributed its profit turnaround to the lower cost base that resulted from last year’s manpower optimization and judicious production cost spending, as well as from license fees for the migration of North American DTH (direct-to-home) subscribers to DirectTVs platform. License fees from DTH amounting to P409 million were booked in the first quarter of the year. Total subscriber base of ABS-CBN Global grew by 22 percent year on year, which translates to 2.1 million viewers worldwide by-end March. The Lopez-led company also said airtime revenues, which accounts for 60 percent of the total, grew 4 percent to P2.26 billion in the first quarter of the year from P2.18 billion in the same period in 2005 as it continued to strengthen its primetime programs. Gross revenue rose by 14 percent to P3.95 billion, driven by license fees from DirectTV and higher