ABS-CBN Broadcasting Corporation is keeping its capital expenditures (CAPEX) for next year at a manageable level.
Company finance officer Randolph Estrallado said next year’s capex will be at
P1.2 billion roughly the same amount it has allotted for this year but lesser than the capex it has spent in the previous years.
According to Estrellado, there would be no major capital expenditures for next year outside of maintenance. He said ABS-CBN will spend
P700 million for maintenance next year and the rest would be spent for cartoon and film rights acquisitions and the like.
ABS-CBN recently reported a 53 percent drop in net income for the first nine months of the year to
P344 million from P734.58 million during the same period in 2004. Lower income for the nine-month period was attributed to continued drop in airtime revenues.
Meantime, the Network’s ret revenues grew 8 percent to
P11.05 billion from P10.27 billion due to higher airtime and other broadcasting related revenues and net sales and services. The firm said revenues continue to be driven by the strong performance of its international operations.
The company added revenues were also boosted by license fees from the migration of its North American direct-to-home subscribers to a new platform, although this was partly offset by charges related to its employee reduction program.
Gross airtime revenues for the first nine months declined 5 percent to
P8.01 billion from P8.43 billion a year ago.
In particular, parent airtime revenues decreased by 6 percent year-on-year to
P7.26 billion as Mega Manila Channel 2 household ratings averaged a lower 14 percent compared to 16 percent in the same period last year.
The decline was partly offset by other platforms, namely the UHF and cable channels which posted an 8 percent growth in airtime revenues.
Other broadcast related revenues jumped 359 percent to
P812 million due to license fees amounting to P618 million from the initial phase of the migration of existing US DTH subscribers to DirecTV’s platform.
Net sales and services sustained its growth momentum in the first nine months of the year with a 15 percent hike to
P3.72 billion from P3.23 billion a year ago. 
