2nd Quarter 2014 Investor`s Briefing Financial and Operating

Transcription

2nd Quarter 2014 Investor’s Briefing
Financial and Operating Results
August 13, 2014
1
ABS-CBN Investor Presentation
2nd Quarter 2014 Highlights
ABS-CBN Events
Launched ABS-CBN Digital
Storefront
Recognitions and Awards
Mr. Eugenio Lopez III,
KBP Lifetime award
Mrs. Charo Santos-Concio,
Woman of the Year
Asia Pacific Stevie Award
2
- Service Company of the Year, Asia Pacific Stevie Awards;
- Best TV Station, 22nd Golden Dove Awards of the KBP
- Gold Award – Advocacy , Tulong Na, Tabang Na, Tayo Na,
Asia-Pacific Tambuli Awards
- Silver Award – Innovative and Integrated Media( Tulong
Na, Tabang Na, Tayo Na), Asia-Pacific Tambuli Awards
- International Gold Quill 2014 – Film Restoration
- ABS-CBNNews.com & iWantTV – Best in category Digital
Filipino Awards
1st Half 2014 Revenues
Excluding election-related advertisements, revenues increased by 3.0%
20,000
4.7%
17,178
16,378
18,000
In PHP Millions
16,000
14,000
12,000
10,213
59%
8,819
54%
13.6%
6,965
41%
7,559
46%
8.5%
10,000
8,000
6,000
4,000
2,000
0
1H'13
Consumer Sales
Ad Revenues
Election-related revenues
3
1H'14
Costs and Expenses
16,000
For the 6 months ended June 30, 2014
15,145
15,092
0.3%
14,000
In PHP Millions
12,000
5,826
Production
Costs
5,600
3.9%
6.8%
10,000
8,000
4,397
Cost of Sales
& Services
4,698
4,922
GAEX
4,794
6,000
4,000
2,000
0
1H'13
4
1H'14
2.6%
Costs and Expenses - Recurring
16,000
15,092
14,716
2.6%
14,000
In PHP Millions
12,000
5,600
2.9%
6.8%
5,770
Production
Costs
4,397
Cost of Sales
& Services
4,698
4,549
GAEX
4,794
10,000
8,000
6,000
4,000
2,000
0
1H'13
5
1H'14
5.4%
Financial Results Summary
In PHP Millions
Net Revenues
20,000
20,000
18,000
4.7%
16,000
14,000
14,000
12,000
12,000
10,000
10,000
8,000
16,378
8,000
6,000
6,000
4,000
4,000
2,000
2,000
0
0
1H'13
6
1H'14
3,000
18,000
16,000
17,178
Net Income
Cost and Expenses
0.3%
2,500
2,000
1,500
15,145
15,092
22.9%
1,000
500
1,291
995
0
1H'13
1H'14
1H'13
1H'14
Financial Results Summary - Recurring
In PHP Millions
Net Revenues
Cost and Expenses
20,000
20,000
18,000
3.0%
16,000
14,000
14,000
12,000
12,000
10,000
10,000
15,895
16,378
8,000
6,000
6,000
4,000
4,000
2,000
2,000
0
3,000
18,000
16,000
8,000
2.6%
1H'14
2,500
2,000
1,500
14,716
15,092
43.6%
1,000
500
693
995
0
0
1H'13
Net Income
1H'13
1H'14
1H'13
1H'14
Excluding election-related advertisements, revenues for the 1st half grew by 3.0% due
to the strong performance of our films both locally and internationally and further
supported by the performance of Sky Cable.
7
Income Statement
Php Millions
1H'14
1H'13
NET REVENUES
16,378
Advertising Revenues
Consumer Sales
Change
Amount
% Change
17,178
-800
-4.7%
8,819
10,213
-1,394
-13.6%
7,559
6,965
594
8.5%
COSTS and EXPENSES
15,092
15,145
-53
-0.3%
Production Costs
5,600
5,826
-226
-3.9%
Cost of Sales and Services
4,698
4,397
301
6.8%
GAEX
4,794
4,922
-128
-2.6%
995
1,291
-296
-22.9%
3,430
4,130
-700
-16.9%
NET INCOME
EBITDA
8
Income Statement – Recurring
Php Millions
1H'14
1H'13
NET REVENUES
16,378
Advertising Revenues
Consumer Sales
Change
Amount
% Change
15,895
483
3.0%
8,819
8,930
-111
-1.2%
7,559
6,965
594
8.5%
COSTS and EXPENSES
15,092
14,716
376
2.6%
Production Costs
5,600
5,770
-170
-2.9%
4,698
4,397
301
6.8%
GAEX
4,794
4,549
245
5.4%
995
693
302
43.6%
3,430
3,276
154
4.7%
NET INCOME
EBITDA
9
2nd Quarter 2014 Highlights – Revenues
vs 1Q 2014
9,000
8,191
vs 2Q 2013
8,187
8,000
7,000
6,000
4,110
4,709
5,000
14.6%
4,000
3,000
2,000
4,081
3,478
1Q'14
2Q'14
14.8%
1,000
0
Consumer Sales
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
9,253
8,187
5,790
3,463
3,478
2Q'13
2Q'14
Consumer Sales
Ad Revenues
4,709
11.5%
18.7%
0.4%
Ad Revenues
Election-related Revenues
The ad revenue growth was fuelled by higher
volume for the quarter and the impact of rate
increase implemented last February.
Excluding election-related advertisements,
total revenues declined by 1%.
On the other hand, consumer sales declined
due to lower number of movies released for
the quarter.
10
2nd Quarter 2014 Highlights – Costs and Expenses
vs 2Q 2013
vs 1Q 2014
9,000
8,000
7,412
7,680
3.6%
9,000
8,000
7,000
7,000
6,000
6,000
5,000
5,000
4,000
4,000
3,000
3,000
2,000
2,000
1,000
1,000
0
1Q'14
7,680
3.2%
0
2Q'14
2Q'13
The growth in costs and expenses comes from
higher costs of programming and bandwidth of
our cable business and inventory costs from
our licensing business.
2Q'14
Excluding election-related expenses,
consolidated costs and expenses were flat
versus last year.
Production costs remains flat quarter-onquarter conforming to the management’s cost
initiatives.
11
7,934
2nd Quarter 2014 Highlights – Net Income
vs 2Q 2013
vs 1Q 2014
900
900
800
800
700
700
600
538
788
600
457
500
15.1%
400
400
300
300
200
200
100
100
0
457
500
42.0%
0
1Q'14
2Q'14
2Q'13
2Q'14
Net Income
Net Income
Election-related Net Income
Blockbuster movies released both locally and
internationally boosted net income for the 1st
quarter of 2014.
12
Excluding election-related income, net income
for the quarter increased by 47.9% versus last
year.
Business Segments
TV and Studio
Operations
Pay TV
Networks
New
Businesses
13
•
Broadcast
•
Global
•
Films and Music
•
Narrowcast and Sports
•
Cable systems
•
Internet broadband
•
ABS-CBN mobile delivers ABS-CBN content and
offers traditional telecoms services on mobile
devices.
•
Kidzania - educational themepark
•
Digital TV: digital broadcast plus additional
free-to-air channels
Business Segments
Revenues
EBITDA
Net Income
In Php Millions
1H‘14
1H'13
% Ch
1H‘14
1H'13
% Ch
1H‘14
1H'13
% Ch
12,999
13,650
-4.8%
3,537
3,658
-3.3%
1,706
1,646
3.6%
27.2%
26.8%
13.1%
12.1%
879
830
122
147
23.0%
24.3%
3.2%
4.3%
-986
-358
-833
-502
-846
-301
-638
-350
DTT
-61
-36
-128
-136
Others
-79
-21
-67
-16
3,430
4,130
995
1,291
20.8%
23.9%
6.0%
7.5%
A. TV and Studio
Margins
B. Pay TV Networks
3,823
3,410
12.1%
Margins
C. New Business
Mobile
D. Inter-segment Elims
TOTAL
Margins
14
198
275
198
275
-569
-64
16,451
17,271
-28.0%
-4.7%
5.9%
175.4%
-16.9%
-17.0%
65.9%
-22.9%
Business Segments - Recurring
Revenues
EBITDA
Net Income
In Php Millions
1H‘14
1H'13
% Ch
1H‘14
1H'13
% Ch
1H‘14
1H'13
% Ch
12,999
12,367
5.1%
3,537
2,804
26.1%
1,706
1,048
62.8%
27.2%
22.7%
13.1%
8.5%
879
830
122
147
23.0%
24.3%
3.2%
4.3%
-986
-358
-833
-502
-846
-301
-638
-350
DTT
-61
-36
-128
-136
Others
-79
-21
-67
-16
3,430
3,276
995
693
20.8%
20.5%
6.0%
4.3%
A. TV and Studio
Margins
B. Pay TV Networks
3,823
3,410
12.1%
Margins
C. New Business
Mobile
D. Inter-segment Elims
TOTAL
Margins
15
198
275
198
275
-569
-64
16,451
15,988
-28.0%
2.9%
5.9%
175.4%
4.7%
-17.0%
65.9%
43.6%
TV and Studio - Broadcast
In PHP Millions
Net Revenues
12,000
8,000
9.4%
10,000
7,000
4.6%
6,000
8,000
5,000
6,000
4,000
4,000
9,576
3,000
8,675
5,505
5,250
1H'13
1H'14
2,000
2,000
0
1H'13
1H'14
1st Half 2014 Audience Share
TOTAL DAY
1st Half 2014 Top 10 Programs - TOTAL
Rank
PRIMETIME
Total Mega Metro
PH Manila Manila
1
Total Mega Metro
PH Manila Manila
2
3
4
ABS-CBN 2
44
31
33
49
34
36
5
GMA 7
33
39
34
31
39
34
7
TV 5
10
13
12
9
12
11
Others
13
17
22
11
16
20
Source: Kantar Media, January – June 2014
16
For primetime, Ch2 continues to
lead in audience share receiving
49% share for national and 36%
for MM.
1,000
0
CHANNELS
Excluding election-related
advertisements, revenue grew
by 4.6% backed by the strong
ratings of our programs.
Production Costs
6
8
9
10
Channel
Program
ABS-CBN THE VOICE KIDS SUNDAY
ABS-CBN THE VOICE KIDS SATURDAY
ABS-CBN HONESTO
ABS-CBN MARS RAVELO'S DYESEBEL
ABS-CBN IKAW LAMANG
ABS-CBN WANSAPANATAYM
ABS-CBN MMK ANG TAHANAN MO
ABS-CBN GOT TO BELIEVE
ABS-CBN TV PATROL WEEKDAY
ABS-CBN BET ON YOUR BABY
Source: Kantar Media, January – June 2014
Share
36.4
34.2
31.7
30.7
29.3
29.0
28.5
28.3
27.2
24.9
Weekend
Weekend
Weekday
Weekday
Weekday
Weekend
Weekend
Weekday
Weekday
Weekend
Rating of 14.5%
3rd Primetime Slot
vs 11.4% of Eat Bulaga
vs 13.4% last year
36.2% Finale rating
30.8% Finale week
International Hit
Vietnam, Malaysia
17
Highest rated program
36.4%
Re-aired well-loved
Asianovelas
Developing New Talents
International Presence
ASIA
Malaysia, Vietnam
Cambodia, China
Singapore, Samoa
Indonesia, Myanmar
AFRICA
Kenya, Uganda,
Nigeria, Namibia
Tanzania, Ghana
18
TV and Studio - Global
In PHP Millions
Net Revenues
3,200
10.6%
2,800
2,800
2,400
2,400
2,000
2,000
1,600
1,600
1,200
2,596
2,872
800
400
400
0
0
1H'14
7.4%
1,200
800
1H'13
Shorter window between local and
international releases drove the
increase in Global’s theatrical
revenues of 53%. Starting Over
Again was the highest grossing
international release.
3,200
1,595
1,713
1H'13
1H'14
ASAP Dubai and OK Go Canada
fuelled the 45% growth of Global’s
advertising revenues.
Global Viewership
3,000
2,500
2,463
2,449
2010
2011
2,143
2,741
2,781
2013
1H '14
2,254
2,000
1,500
1,000
500
2009
19
2012
TV and Studio - Films and Music
In PHP Millions
Net Revenues
1,000
15.3%
1,000
800
800
600
600
400
760
876
15.7%
Skylight continues to fill the gap of
many stories not tackled by
mainstream movies. My Illegal Wife
set the record for the highest grossing
Skylight film produced.
400
200
200
0
0
1H'13
Total revenues increased by 15%
driven by strong local theatrical sales
of Star Cinema movies. 3 out of the 8
movies released generated more than
Php 300M in box office receipts.
1H'14
357
413
1H'13
1H'14
As of June 2014, Star Cinema produced 33% of total local
films and accounted for 88% of total local films receipts.
Others,
16
Star Cinema,
8
No. of Local Films Produced
20
Star Cinema,
1.3B
Released 3
movies in the
2nd quarter.
Others
0.2B
Mounted one of the
most successful
concerts for the year.
Local Theatrical Revenues
TV and Studio - Narrowcast and Sports
In PHP Millions
Net Revenues
1,000
1,000
5.8%
800
800
600
400
600
828
780
400
683
625
1H'13
1H'14
200
200
0
0
1H'13
21
8.5%
1H'14
Subscription revenues from our cable
channels grew by 11% fuelled by
Cinema One’s 12% growth from both
local and international subscription. It
continues to be the no. 1 cable
channel.
ABS-CBN Sports + Action continues to
bring premium sports offerings for
both local and foreign content: UAAP,
Pinoy Pride, FIBA and NBA.
Pay TV Networks - Sky Cable
In PHP Millions
Net Revenues
Costs and Expenses
4,800
4,800
12.1%
4,000
3,200
3,200
2,400
2,400
1,600
3,410
1,600
800
800
0
0
1H'13
22
3,823
1H'14
14.8%
4,000
3,137
1H'13
3,600
1H'14
Total revenues increased by 12% from
improvement in the cable and
broadband subscription revenues of 7%
and 40%, respectively.
Cable subs grew by 3% while broadband
posted a growth rate of the no. of
broadband subscribers grew by 31%.
Excluding forex impact, expenses
increased by 13%.
New Business - ABS-CBNmobile
Approximately 537,000 subs as of
June 2014
Ave. Daily Activations
6,000
5,000
4,000
3,000
2,000
1,000
Nov Dec Jan Feb Mar Apr May Jun
23
Exclusive Mobile Content
Capital Expenditures
To date, CAPEX spending is at Php 2.3B.
1,044
2,623
2,948
657
1,634
2,023
387
989
925
Program Rights
Pay TV
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1H '14
Balance
In PHP Millions
24
Digital TV,
Maintenance and Others
Balance Sheet Highlights
In PHP Millions
Total Assets
Total Borrowings
Equity
70,000
30,000
30,000
60,000
25,000
25,000
20,000
20,000
15,000
15,000
50,000
40,000
30,000
57,992
64,848
10,000
20,000
10,000
5,000
0
0
2013
1H '14
14,680
20,383
25,923
26,239
2013
1H '14
10,000
5,000
0
2013
1H '14
Cash
30,000
Ratios
2013
1H '14
25,000
Current
1.76
2.24
20,000
Debt-to-Equity
0.57
0.78
15,000
Net Debt-to-Equity
15.67%
19.48%
10,000
5,000
10,617
15,270
0
2013
25
1H '14
Except for historical and operating data and other information of historical matters, the
statements contained herein are “forward-looking statements”. The words “believe”, “intend”,
“plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will” or other similar words are
frequently used to indicate these forward looking statements. Any such forward-looking
statement is not a guarantee of future performance and involves a number of known and
unknown risks, uncertainties and other factors that could cause the actual performance, financial
condition or results of operation of ABS-CBN to be materially different from any future
performance, financial condition or results of operation implied by such forward-looking
statement.
26
THE END
27

2nd Quarter 2014 Investor`s Briefing Financial and Operating

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