ABS-CBN Corporation, the country's largest multimedia conglomerate, registered a 29 percent drop in consolidated net income to P1.71 billion in 2012 from the P2.42 billion reported in 2011.
In a disclosure to the Philippine Stock Exchange, ABS-CBN said net income should show a 23 percent increase if the effects of the gain from the sale of investments recognized in 2011 amounting to P1.03 billion were removed.
The growth in recurring income was fuelled by strong advertising revenues and consumer sales. ABS-CBN generated consolidated revenues of P31.7 billion from advertising and consumer sales, a 13 percent increase compared to last year.
ABS-CBN's advertising revenues reached P19.1 billion, an increase of 8 percent from a year ago. Consumer sales amounted to P12.7 billion, posting a 19 percent increase.
Sky Cable continues to be a major driver of growth with revenues increasing by 32 percent to P5.9 billion. The growth in revenues is partly attributable to the acquisition of Destiny Cable.
Total operating and other expenses increased by 12 percent to P26.2 billion brought about by increases in production costs, cost of sales and services, and general and administrative expenses. Capital expenditure and film and program rights acquisition amounted to P4.9 billion, 18 percent higher than the level of spending in the previous year.
ABS-CBN said it maintained its national audience share and ratings leadership for Urban and Rural audiences with prime-time audience share averaging 48 percent in 2012, a 20 percentage point lead over GMA's, based on the Kantar National TV Ratings.
For the period June to December 2012, 17 of the company's shows were in the Top 20 for Total Philippines (Urban and Rural).