After posting the financial results of GMA 7 yesterday, Bakit daw panay ang press release ng Kapuso network, at hanggang financial results nila ay pinagsisigawan. Some of our readers questioned us, na nagiging pabor daw kami sa GMA 7 for publishing the blog post, at ni hindi man namin binigyan ng fair treatment ang ABS-CBN because we’re not publishing their financial results.

So to be fair to everyone, here are the financial results of ABS-CBN. Note that the numbers are only for the first half of 2009, at hindi pa nila naipalabas ang para sa 3rd Quarter gaya ng resulta from GMA 7. The data came from ABS-CBN as reported by the company to the SEC.

Here are the highlights of the network’s financial operations:

The consolidated net income of ABS-CBN Broadcasting Corporation, the country’slargest multimedia conglomerate, grew 8% in the first half of 2009 to P813 million,after yielding only P191 million in the first quarter of the year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for 1H 2009 reached P3.37 billion, P692 million or 26% higher over last year’s P2.68 billion, andyielding an EBITDA margin of 29% for 1H 2009 versus 26% a year ago.

Consolidated revenues from airtime and direct sales rose to P11.7 billion with an increase of P1.4 billion or 14% year-on-year, inclusive of gross revenue contributionfrom SkyCable of P1.79 billion for the first half of 2009. Consolidation of SkyCableinto ABS-CBN began last April 2008.

From low sales levels in January and February 2009, airtime revenues rebounded, posting arecord breaking P1.4 billion in May. Consolidated airtime revenues from all platformsreached P6.72 billion, P355 million or 6% better than it was in the same period lastyear.

Direct sales from core businesses rose by P199 million or 7% to P3.2 billion in the first six months of the year. SkyCable’s revenue performance boosted total direct sales inthe first half of the year to P4.97 billion pushing direct sales growth for the period to28% year-on-year.

Total production cost for the first half of 2009 is P10 million lower than in the same period last year at P2.94 billion even as the number of locally produced afternoon andprimetime programs increased. Cash production costs realized savings of P108 millionto P2.24 billion, 5% lower year-on-year.

Total cost of sales and services from core businesses including ABS-CBN Global reached P1.7 billion in the first six months of the year, a 9% increase from last year.With the inclusion of Skycable’s cost of sales, total cost of sales went up to P2.37billion an increase of P516 million or 28% year-on-year.

Operating expenses of core businesses — or General and Administrative Expenses — increased by P111 million or 5% year-on-year to P2.55 billion. The increase inoperating expenses came mostly from personnel expenses, but were offset by P146million of savings in facilities-related and other expenses. Consolidating Skycable’soperating expenses, consolidated GAEX amounts to P3.6 billion for the first half, anincrease of P707 million or 24% over the same period last year.

Now, sa website ng ABS-CBN for their investors, inilahad ng Kapamilya network ang kanilang results and strategies to win in the ratings game. Kasama na roon ang pag-convert nila using digital technology. Read it:

How has ABS-CBN performed ratings-wise?

In February 2009, TNS Philippines released its official national TV audience measurement results. Since their official release, ratings and audience share continue to prove that ABS-CBN is the national leader in total day (6am to 12mn), and especially in primetime where bulk of airtime revenues are sourced.

ABS-CBN leads in most of the country’s major geographical areas, including North Luzon, South Luzon, Visayas and Mindanao. In Metro Manila, ABS-CBN is at parity with its closest competitor. Vulnerable areas are Central Luzon and the Suburbs of Metro Manila (which comprise of nearby provinces Rizal, Bulacan, Laguna, Cavite and parts of Pampanga) due to ABS-CBN’s signal and reception issues.

ABS-CBN’s channel frequency in Mega Manila, Channel 2, is considered to be at the Very Low Frequency band or VLF. Television signals from this frequency tend to be easily disturbed and interfered. Channel numbers above 5 do not have this inherent vulnerability. ABS-CBN’s signal and reception issues in these areas are currently being addressed by transmitter upgrades and UHF alternatives in the area. Digital television is the long-term solution.

Why not simply change frequencies?

In Metro Manila, all available analog channel frequencies are already assigned and there are no more analog frequencies for Channel 2 to occupy.

What steps are being taken to ensure competitiveness in terms of ratings?

For ABS-CBN Channel 2, it is a two-pronged strategy: engaging programming and transmission network infrastructure. We will continue to produce programming that satisfies the needs of our viewers. We are also taking steps to improve our transmission systems and eliminate the inherent disadvantage of being in the VLF range.

For the long-term, digital terrestrial television or digital TV will address our analog TV signal and reception issues. Digital TV is already being adopted by numerous countries worldwide.

Sa mga nagtatanong kung pwede bang mag-padding ang isang company ng kanilang financial results, the simplest answer is yes. Even in the US, there were instances when companies were fined and charged by the SEC and the federal goverment because of manipulations of financial results to make the company’s numbers look good to investors. So may padding ba ang resulta ng ABS-CBN at GMA 7? Di namin alam, and we hope wala!

And since we do not have access sa totoong nangyayari sa loob ng dalawang TV stations ng bansa aside from the financial statements na pinapalabas nila for the public and filed to the SEC, we take the results as they are. Bahala na tayong mag-decide kung sino ba talaga ang mas-kapani-paniwala ang financial results.

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