rd Quarter 2014 Investor’s Briefing Financial and ... · She's Dating the Gangster Bakit Di Ka...

3rd Quarter 2014 Investor’s Briefing Financial and Operating Results

November 11, 2014

ABS-CBN Investor Presentation 1


Revenues increased by 4.0% excluding election-related advertisements

Revenues

10,344 11,118

15,040 13,939

0

4,000

8,000

12,000

16,000

20,000

24,000

28,000

9M'13 9M'14

Ad Revenues Consumer Sales

Election-related Revenues

59% 56%

41% 44%

25,384 25,057 1.3%

7.3%

7.5%

For the 9 months ended September 30, 2014

Costs and Expenses



7,329 7,424

6,636 6,999

8,595 8,378

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

9M'13 9M'14

Production

Costs

Cost of Sales

& Services

GAEX

2.5%

1.3%

5.5%

22,560 22,801 1.1%

Costs and expenses up slightly; Production costs down 2.5%

Financial Summary - Recurring


Net Revenues

In PHP Millions


Costs and Expenses Net Income

Excluding election-related advertisements, revenues for the first nine months grew by 4.0% due to the strong performance of our films both locally and internationally

and further supported by the performance of Sky Cable.

24,101 25,057

0

5,000

10,000

15,000

20,000

25,000

30,000

9M'13 9M'14

22,131 22,801

0

5,000

10,000

15,000

20,000

25,000

30,000

9M'13 9M'14

1,193 1,541

0

500

1,000

1,500

2,000

2,500

3,000

9M'13 9M'14

4.0%

3.0%

29.2%

Financial Summary


Net Revenues


Costs and Expenses Net Income

25,384 25,057

0

5,000

10,000

15,000

20,000

25,000

30,000

9M'13 9M'14

22,560 22,801

0

5,000

10,000

15,000

20,000

25,000

30,000

9M'13 9M'14

1,791 1,541

0

500

1,000

1,500

2,000

2,500

3,000

9M'13 9M'14

1.3%

1.1%

14.0%

In PHP Millions

3rd Quarter 2014 Highlights – Revenues


vs 2Q 2014 vs 3Q 2013

Ad revenue growth driven by higher volumes for the quarter coupled with an increase in the

ad rates.

Consumer sales fuelled by the growth in the cable business as well as the performance of

the films released.

Ad revenue growth driven by higher volumes for the quarter coupled with an increase in the

ad rates.

3,478 3,559

4,709 5,120

0

2,000

4,000

6,000

8,000

10,000

2Q'14 3Q'14


8.7%

2.3%

6.0% 8,187

8,679

3,379 3,559

4,827 5,120

0

2,000

4,000

6,000

8,000

10,000

3Q'13 3Q'14


6.1%

5.3%

5.8% 8,206

8,679

3rd Quarter 2014 Highlights – Costs and Expenses


vs 2Q 2014 vs 3Q 2013

Increase of 4% versus last year due to the increase in programming and bandwidth costs

of SkyCable.

Production costs remained flat quarter-on-quarter conforming to the management’s cost

initiatives.

7,680 7,709

0

2,000

4,000

6,000

8,000

10,000

2Q'14 3Q'14

7,416 7,709

0

2,000

4,000

6,000

8,000

10,000

3Q'13 3Q'14

0.4% 4.0%

3rd Quarter 2014 Highlights – Net Income


vs 2Q 2014 vs 3Q 2013

457 545

0

200

400

600

800

2Q'14 3Q'14

500 545

0

200

400

600

800

3Q'13 3Q'14

19.3% 9.0%

Net income increased by 9% as a result of revenue and cost initiatives.

Business Segments


TV and Studio

Pay TV Networks

New Businesses

• Broadcast

• Global

• Films and Music

• Narrowcast and Sports

• 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

• Cable systems

• Internet broadband

//upload.wikimedia.org/wikipedia/en/1/18/ABS-CBN_Sports_and_Action_logo.jpeg

Business Segments - Recurring


In Php Millions Revenues EBITDA Net Income

9M‘14 9M'13 % Ch 9M‘14 9M'13 % Ch 9M‘14 9M'13 % Ch

A. TV and Studio 19,150 18,671 2.6% 4,862 4,410 28.9% 2,190 1,767 23.9%

Margins 25.4% 23.6% 11.4% 9.5%

B. Pay TV Networks 5,780 5,151 12.2% 1,323 1,251 5.8% 186 216 -13.9%

Margins 22.9% 24.3% 3.2% 4.2%

C. New Businesses 288 400 -28.0% -884 -624 173.6% -836 -790 5.8%

D. Inter-segment Elims -161 -122

TOTAL 25,057 24,100 4.0% 5,301 5,037 5.2% 1,541 1,193 29.1%

Margins 21.2% 20.9% 6.1% 5.0%

*** Numbers presented are net of ABS-CBNmobile TVCs.

Our TV and Studio business has continued to strengthen…

Business Segments


In Php Millions Revenues EBITDA Net Income

9M‘14 9M'13 % Ch 9M‘14 9M'13 % Ch 9M‘14 9M'13 % Ch

A. TV and Studio 19,150 19,954 -4.0% 4,862 5,264 8.0% 2,190 2,365 -7.4%

Margins 25.4% 26.4% 11.4% 11.9%

B. Pay TV Networks 5,780 5,151 12.2% 1,323 1,251 5.8% 186 216 -13.9%

Margins 22.9% 24.3% 3.2% 4.2%

C. New Businesses 288 400 -28.0% -884 -624 173.6% -836 -790 5.8%

D. Inter-segment Elims -161 -122

TOTAL 25,057 25,384 -1.3% 5,301 5,891 -10.0% 1,541 1,791 -14.0%

Margins 21.2% 23.2% 6.1% 7.1%

*** Numbers presented are net of ABS-CBNmobile TVCs.

TV and Studio - Broadcast


In PHP Millions

With the company’s continuous cost reduction initiatives, production costs declined by 3.6%. For primetime, Ch2 continues to lead in audience share receiving

49% share for national and 37% for MM.

3Q 2014 Audience Share

CHANNELS

TOTAL DAY PRIMETIME

Total PH

Mega Manila

Metro Manila

Total PH

Mega Manila

Metro Manila

ABS-CBN 2 44 31 33 49 34 37

GMA 7 34 40 34 32 40 35

TV 5 10 12 11 8 11 10

Others 14 18 22 11 15 19

Source: Kantar Media, January – September 2014

Rank Channel Program Share

1 ABS-CBN THE VOICE KIDS SUNDAY 34.9 Weekend

2 ABS-CBN THE VOICE KIDS SATURDAY 34.0 Weekend

3 ABS-CBN HONESTO 31.7 Weekday

4 ABS-CBN MARS RAVELO'S DYESEBEL 30.1 Weekday

5 ABS-CBN BOSES NG BULILIT KAMI ULIT! 28.9 Weekend

6 ABS-CBN MMK ANG TAHANAN MO 28.4 Weekend

7 ABS-CBN GOT TO BELIEVE 28.3 Weekday

8 ABS-CBN IKAW LAMANG 28.3 Weekday

9 ABS-CBN HAWAK-KAMAY 28.0 Weekday

10 ABS-CBN PBB ALL IN THE BIG NIGHT 27.9 Weekend

3Q 2014 Top 10 Programs - TOTAL

Source: Kantar Media, January – September 2014

13,853 13,456

9M'13 9M'14

Net Revenues

8,234 7,939

9M'13 9M'14

Direct Costs

3.6%

2.9%

TV and Studio - Global


Global Viewership

The success of international releases continues to play a major role in boosting the revenue of our Global business. Ok Go and ASAP events continue to generate advertising revenues for the group. Our remittance business is growing steadily, increasing its revenues by 10%.

In PHP Millions

4,049 4,222

9M'13 9M'14

Net Revenues

2,450 2,534

9M'13 9M'14

Cost of Sales and Services

4.3% 3.4%

2,143 2,463 2,449

2,254

2,741 2,799

2009 2010 2011 2012 2013 9M'14

Released 8 movies in 2014 vs 7 in 2013


Total revenues increased by 22% driven by strong local theatrical sales of Star Cinema movies. She’s Dating the Gangster, released in the 3rd quarter, reached more than Php 250M in box office receipts. After the success of my Illegal Wife, the group ventured to the pop-novel genre with Talk Back and Your Dead making it the second most successful film of the group.

TV and Studio - Films and Music

3rd Quarter Movie Releases

Star Cinema, 1.3B

In PHP Millions

961 1,173

9M'13 9M'14

Net Revenues

496 558

9M'13 9M'14

Cost of Sales and Services

12.5%

22.1%

2014 2013

She's Dating the Gangster Bakit Di Ka Crush ng Crush Mo

Maria Leonora Teresa Momzillas

Talk Back and You’re Dead Ekstra

Once a Princess OTJ

Tuhog

TV and Studio - Narrowcast and Sports


In PHP Millions

Subscription revenues from our cable channels grew by 8% fuelled by Cinema One’s growth from both locally and internationally. Advertising revenues from our Sports + Action channel, Balls and E! significantly driven by the FIBA World Cup, UAAP plus new content offerings.

1,267 1,369

9M'13 9M'14

Net Revenues

986 924

9M'13 9M'14

Direct Costs

8.1%

6.3%

Pay TV Networks - SkyCable


In PHP Millions

Total revenues grew by Php 628M driven by an 7% increase in cable revenues and 38% increase in broadband revenues. Our broadband subscriber base continues to expand, growing by 38% as of the 3rd quarter of 2014. Excluding forex impact, expenses only increased by 13%.

5,152 5,780

9M'13 9M'14

Net Revenues

3,273 3,785

9M'13 9M'14

Costs and Expenses

12.2%

15.6%

New Business - ABS-CBNmobile


-

2,000

4,000

6,000

8,000

10,000

June July August September October

Ave. Daily Activations

Over 1.1 M subscribers as of

October.

Partnerships

540

1,552 1,664 504

1,071 1,285

-

500

1,000

1,500

2,000

2,500

3,000

3,500

Program Rights Pay TV Digital TV,Maintenance and Others

9M'14 Remaining Balance

Capital Expenditures


In P

HP

Mill

ion

s

To date, CAPEX spending is at Php 3.8B out of the Php 6.6B budget.

1,044

2,623

2,948

Balance Sheet Highlights


Ratios 2013 9M '14

Current 1.8 2.2

Debt-to-Equity 0.6 0.8

Net Debt-to-Equity 15.7% 18.2%

In PHP Millions

57,992 66,619

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2013 9M '14

Total Assets

14,680 20,384

0

5,000

10,000

15,000

20,000

25,000

30,000

2013 9M '14

Total Borrowings

25,923 26,901

0

5,000

10,000

15,000

20,000

25,000

30,000

2013 9M '14

Equity

10,617 15,494

0

5,000

10,000

15,000

20,000

25,000

30,000

2013 9M '14

Cash

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.


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rd Quarter 2014 Investor’s Briefing Financial and ... · She's Dating the Gangster Bakit Di Ka...

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