ABS-CBN Broadcasting Corporation

ABS-CBN Broadcasting Corporation
Sgt. Esguerra Avenue, Quezon City, Philippines
10 August 2010
To:
Disclosure Department
Philippine Stock Exchange, Inc.
3rd Floor, Philippine Stock Exchange Plaza
Ayala Triangle, Ayala Avenue, Makati City
Attn:
Ms. Janet A. Encarnacion
Head, Disclosure Department
From:
ABS-CBN Broadcasting Corporation
Tel No.: (632) 924-4101/415-2272
Fax No.: (632) 431-9368
Subject:
1H 2010 Analysts’ and Press Briefing Presentation Materials
Gentlemen / Ladies:
Please find enclosed the presentation materials used during the 1H 2010 Analysts’ and Press
Briefing held at the Chronicle Lounge of ABS-CBN Broadcasting Corporation on Tuesday,
10 August 2010.
Very truly yours,
Charles A. Gamo
Compliance Officer for Corporate Governance and
Head, Investor Relations
1H 2010 Financial & Opera1ng Results
The Chronicle Lounge
14/F Eugenio Lopez Jr. Communications Center
ABS-­‐CBN Broadcast Center
Tuesday, 10 August 2010
Consolidated Gross Revenues
Php16.84 billion
1H 2010 Consolidated Gross Revenue
44% year-­‐on-­‐year
Adver&sing Revenues
68%
Consumer Sales
32%
Consolidated A
dver1sing R
evenues
in Php Millions (including Non-­‐Recurring Poli5cal Ad Revenues)
12,000
6,719
11,496
2,330
9,000
71% YoY
6,000
3,000
9,166
6,719
0
1H 2009
1H 2010
Recurring Ad Revenue
Non-­‐Recurring Pol Ad Revenue
Recurring A
dver1sing R
evenues
in Php Millions (excluding Non-­‐Recurring Poli5cal Ad Revenues)
10,000
7,500
36% YoY
5,000
2,500
6,719
9,166
0
1H 2009
1H 2010
Adver1sing M
inutes
1H 2010 vs 1H 2009
ABS-­‐CBN Channel 2
Total Adver1sing Minutes
Policacies / Poli5cal Ads
Regular Adver&sing Minutes
TOTAL DAY
1H 2010
48,760
1H 2009
34,324
5,404
43,356
% Change
42%
NA
34,324
26%
Source: Nielsen Media Research
Excluding poli1cal advocacies and poli1cal ads, ABS-­‐CBN Channel 2’s total day adver1sing minutes from regular adver1sers grew 26%.
ABS v. GMA Total Adver1sing Minutes
in Php Millions
1H 2009
1H 2010
10,000
7,500
5,000
2,500
0
Jan ‘09
Feb
Mar
Apr
May
Jun Jan ‘10
Feb
Mar
Source: Nielsen Media Research
ABS Total mins
GMA Total mins
Apr
May
Jun
ABS v. GMA Regular Adver1sing Minutes
in Php Millions
1H 2009
1H 2010
10,000
7,500
5,000
2,500
0
Jan ‘09
Feb
Mar
Apr
May
Jun Jan ‘10
Feb
Mar
Source: Nielsen Media Research
ABS Regular mins
GMA Regular mins
Apr
May
Jun
Sustained N
a1onwide L
eadership
Kantar Media/TNS Na5onal Urban Philippines TV Audience Shares
Total Day Shares
(6am to 12mn)
36
Feb-­‐Mar 09
47
46
45
44
47
44
44
44
34
34
33
33
32
31
31
2Q 09
3Q 09
4Q 09
1Q 10
Apr 10
May 10
Jun 10
ABS-­‐CBN
GMA
Sustained N
a1onwide L
eadership
Kantar Media/TNS Na5onal Urban Philippines TV Audience Shares
June 2010 Total Day Shares
(6am to 12mn)
66
62
44
38
36 34
31
8
11
33
32
35
28
12
10
National Phils Mega Manila Metro Manila
49
44
38
3
Suburbs
ABS
59
8
24
21
16
2
North Luzon Central Luzon South Luzon
GMA
TV5
2
Visayas
3
Mindanao
In June 2010, first 11 of the Top 20 are from ABS-­‐CBN
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Consumer Sales
in Php Millions
6,000
5,000
8% YoY
4,000
3,000
4,967
5,343
2,000
1,000
1H 2009
1H 2010
ABS-­‐CBN Global
Sustained 10% YoY growth in subscriber count
• Over 2.1 million viewers worldwide
• 19% growth in cable TV and 10% growth in IPTV subscripWons
• Double-­‐digit growth in Canada due to launch of cable services to complement IPTV
• Growth in DTH in Australia sustained SkyCable
13% YoY growth in consolidated revenues
• Overall subscriber count is 5% higher YoY
• 61% YoY growth in broadband subscripWons
• Skycable 280 gaining tracWon among lower income households
• Higher ARPUs from premium cable TV services
ABS-­‐CBN Film Produc1ons.
3 of 6 films released in 1H 2010 broke past the Php100 million mark in gross box office receipts.
Consolidated Net Revenues*
in Php Millions
16,000
12,000
38% YoY
8,000
4,000
14,411
10,477
0
1H 2009
1H 2010
*Net of revenue deductions (i.e., agency commission, incentives and co-prod share)
Total Expenses
in Php Millions
12,000
23% YoY
9,000
6,000
11,324
9,206
Growth in expenses are
well within and in line
with revenue growth
30% YoY
5% YoY
42% YoY
3,000
3,835
3,822
3,488
3,322
2,939
2,683
0
Total Expenses
Produc1on Cost of Sales Cost
and Services
1H 2009
GAEX
1H 2010
32% YoY
262 179
All Other Expenses
Produc1on Cost
in Php Millions
4,500
22% more in-­‐house 30% YoY
42% YoY
3,600
produced programs in 1H 2010 [prime1me and acernoon]
2,700
1,800
2,939
3,835
2,238
900
3,171
5% YoY
701
0
Production Cost
Cash
1H 2009
664
Non-­‐Cash
1H 2010
Cost of Sales and Services
in Php Millions
3,600
5% YoY
2,700
1,800
3,322 3,488
900
0
11% YoY
5% YoY
1,265 1,402 1,317 1,389
Total Cost of Sales and Services
ABS-­‐CBN Global
1H 2009
SkyCable
1H 2010
6% YoY
740 697
Other Subsidiaries
GAEX
in Php Millions
4,000
42% YoY
50% YoY
3,000
3,822
2,000
1,000
2,683
3,491
2,330
0
GAEX
Cash
1H 2009
6% YoY
353 331
Non-­‐Cash
1H 2010
Net Income
in Php Millions
813
2,265
Reported Income
179% YoY
1,007
813
1H 2009
Recurring Income
1,258
Recurring Income
55% YoY
1H 2010
Income from non-­‐recurring pol ads
EBITDA
in Php Millions
3,369 4,997
Reported EBITDA
48% YoY
1,438
3,369
3,559
1H 2009
1H 2010
Recurring EBITDA
Recurring EBITDA
6% YoY
EBITDA from non-­‐recurring pol ads
Capital Expenditures
in Php Millions 1,500
8% YoY
1,125
750
1,357
1,249
1H 2009
1H 2010
375
0
Total 2010 CapEx
budget is P3.49b
Balance Sheet Accounts
End-­‐1H 2010 vs End-­‐2009
Total Assets
Php 38.3B
10%
Cash and Equivalents
Php 5.8B
73%
Trade and Other Receivables
Php 6.8B
19%
DSO
72 days
2 days
Total Interest Bearing Debt
Php 8.9B
1%
Shareholders’ Equity
Php17.3B
7%
Net Debt-to-Equity Ratio
0.18x
0.17x