by James A. Loyola
ABS-CBN Corporation, the country’s leading media and entertainment company, reported a 39 percent hike in net income to P3.5 billion last year, from the P2.5 billion earned in 2015.
In a media and analysts briefing, ABS-CBN Chief Financial Officer Aldrin Cerrado said consolidated revenues grew 8.6 percent to P41.6 billion in 2016 from P38.3 billion reported in 2015.
“We are very pleased to have exceeded our earnings guidance for 2016. Full year growth in advertising revenues, boosted by election-related spending, was about 11 percent,” said Cerrado
ABS-CBN adopted the cost per individual rating point pricing (CPIRP) scheme in 2015, which rewards the company for an increase in ratings. 2016 was its first full year of implementation.
“Our continued strong leadership in national audience share was also a key contributor to our record performance because improved ratings now translate to increased revenues. We have also been able to manage our costs and expenses efficiently,” added Cerrado.
Cost and expenses were up only 6 percent last year. In particular, ABS-CBN was successful in its continuing efforts to control production costs and reduced expenses by about percent on a per hour basis compared to 2015.
ABS-CBN Group Chief Finance Officer Rolando Valdueza said “We are also extremely happy with the performance of our subsidiaries last year. The healthy growth in our advertising revenues coupled with the accomplishments of our different business units enabled us to deliver record earnings performance for ABS-CBN.”