Slide 1: Full Year 2014 Investor's Briefing: Financial and Operating Results
Full Year 2014 Investor’s Briefing Financial and Operating Results March 19, 2015 1 ABS-CBN Investor Presentation
Slide 2: Revenues – Excl. Pol Ads
Revenues – Excl. Pol Ads For the year ended December 31, 2014 35,000 32,094 33,544 4.5% 30,000 25,000 18,049 56% 18,880 56% 4.6% 20,000 15,000 10,000 14,046 44% 14,664 44% 4.4% 5,000 0 2013 2014 Ad Revenues Consumer Sales 2 ABS-CBN Investor Presentation
Slide 3: Revenues - Reported
Revenues - Reported For the year ended December 31, 2014 2014 revenues higher than the previous election year 35,000 33,378 33,544 0.5% 30,000 25,000 19,332 58% 18,880 56% 2.3% 20,000 15,000 10,000 14,046 14,664 44% 4.4% 42% 5,000 0 2013 2014 Ad Revenues Consumer Sales 3 ABS-CBN Investor Presentatio
Slide 4: Costs and Expenses
Costs and Expenses For the year ended December 31, 2014 Production costs down 4.3% 35,000 0.2% 30,298 30,369 30,000 4.3% 25,000 Production 11,008 11,499 Costs 20,000 15,000 Cost of Sales 9,247 0.7% 9,184 & Services 10,000 5,000 9,615 10,114 GAEX 5.2% 0 2013 2014 4 ABS-CBN Investor Presentation
Slide 5: Financial Summary – Excl. Pol Ads
Financial Summary – Excl. Pol Ads For the year ended December 31, 2014 In PHP Millions Net Revenues Costs and Expenses Net Income 40,000 40,000 4,000 4.5% 35,000 35,000 3,500 1.7% 30,000 30,000 3,000 25,000 25,000 2,500 42.0% 20,000 20,000 2,000 32,095 33,544 15,000 15,000 29,870 30,369 1,500 10,000
Slide 6: Financial Summary
Financial Summary For the year ended December 31, 2014 In PHP Millions Net Revenues Costs and Expenses Net Income 40,000 40,000 4,000 0.5% 35,000 35,000 3,500 0.2% 30,000 30,000 3,000 25,000 25,000 2,500 0.1% 20,000 20,000 2,000 33,378 33,544 15,000 15,000 30,298 30,369 1,500 10,000 10,000 1,000 2,0
Slide 7: Business Segments – Excl. Pol Ads
Business Segments – Excl. Pol Ads For the year ended December 31, 2014 Our TV and Studio business has continued to strengthen… Revenues EBITDA Net Income In Php Millions 2014 2013 % Ch 2014 2013 % Ch 2014 2013 % Ch A. TV and Studio 25,555 24,804 3.0% 6,376 5,598 13.9% 2,976 2,137 39.3% Margins 25.0%
Slide 8: Business Segments - Reported
Business Segments - Reported For the year ended December 31, 2014 Revenues EBITDA Net Income In Php Millions 2014 2013 % Ch 2014 2013 % Ch 2014 2013 % Ch A. TV and Studio 25,555 26,087 -2.0% 6,376 6,452 -1.2% 2,976 2,735 8.8% Margins 25.0% 24.7% 11.6% 10.5% B. Pay TV Networks 7,764 6,937 11.9% 1,856
Slide 9: TV and Studio - Broadcast
TV and Studio - Broadcast In PHP Millions Net Revenues Direct Costs With the company’s continuous 1.3% 5.3% cost reduction initiatives, production costs declined by 5.3%. 17,743 17,976 11,088 10,495 For primetime, Ch2 continues to lead in audience share receiving 49% share nationwide. 2013 2014 2013
Slide 10: TV and Studio - Broadcast: Audience Share Leadership
TV and Studio - Broadcast ABS-CBN has further solidified its leadership in terms of national total day and primetime audience share TOTAL DAY PRIMETIME CHANNELS Total PH Mega Metro Total Mega Metro Manila Manila PH Manila Manila 2014 ABS-CBN 2 44 31 33 49 34 37 Audience GMA 7 34 40 35 32 40 35 Share
Slide 11: TV and Studio - Broadcast: 2014 Top Programs
TV and Studio - Broadcast 2014 Top 10 Programs Rank Channel Program Share 1 ABS-CBN THE VOICE KIDS SUNDAY 34.9 Weekend ABS-CBN THE VOICE KIDS SATURDAY 34.0 Weekend 2 GMA 7 Pacquiao versus Algieri 34.0 Weekend 3 ABS-CBN HONESTO 31.7 Weekday 4 ABS-CBN MARS RAVELO'S DYESEBEL 30.1 Weekday 5 ABS-CBN BOSE
Slide 12: TV and Studio - Global
TV and Studio - Global In PHP Millions Net Revenues Cost of Sales and Servies 2.2% The success of international 1.7% releases played a major role in boosting the revenue of our Global business (12 movies 5,527 5,651 3,341 3,399 screened across the Global Regions in 2014 vs 8 in 2013) 2013 2014 2013
Slide 13: TV and Studio - Films and Music
TV and Studio - Films and Music In PHP Millions Net Revenues Costs of Sales and Services The group’s margin continue to improve with the steep 17.0% increase in revenues by 17% driven by strong local theatrical 2.0% sales of Star Cinema movies. 1,355 1,158 In 2014, the group released 586 598 and dis
Slide 14: Pay TV Networks - SkyCable
Pay TV Networks - SkyCable In PHP Millions Net Revenues Costs and Expenses Total revenues grew by Php 827M driven by a 8% increase 11.9% in cable revenues and 37% 11.8% increase in broadband revenues. 7,764 6,937 4,484 5,014 Our broadband subscriber base continues to expand, growing by 24% in 2014.
Slide 15: Digital Terrestrial TV (DTT)
Digital Terrestrial TV (DTT) • Implementing Rules and Regulations released last December 17, 2014. • Launched February 2015. • More than 200,000 boxes to date. • Target: 1M boxes by year-end. TRANSFORMATIVE EXPERIENCE FOR THE FAMILY - Viewing clarity - New channels - No monthly fee 15 ABS-CBN Invest
Slide 16: A Complete Range of Entertainment & Information Content
A Complete Range of Entertainment & Information Content 16 ABS-CBN Investor Presentation
Slide 17: Mobile: Over 1.5M subs with ARPU of Php 65
Over 1.5M subs as of end December 2014 with ARPU of Php 65 Partnerships Exclusive Mobile Content 17 ABS-CBN Investor Presentation
Slide 18: Capital Expenditures - 2014
Capital Expenditures - 2014 Total Spent of Php 5.6 billion in 2014 3,000 2,500 In PHP Millions 2,000 1,500 2,684 2,308 1,000 500 593 - Program Rights Pay TV Digital TV, Maintenance and Others 18 ABS-CBN Investor Presentation
Slide 19: Capital Expenditures – 2015 Budget
Capital Expenditures – 2015 Budget Budgeted Php 8.5 billion in 2015 4,500 4,000 3,500 In PHP Millions 3,000 2,500 2,000 4,095 1,500 3,149 1,000 500 1,212 - Program Rights Pay TV Digital TV, Maintenance and Others 19 ABS-CBN Investor Presentation
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights In PHP Millions Total Assets Total Borrowings Equity 70,000 30,000 30,000 60,000 25,000 25,000 50,000 20,000 20,000 40,000 67,237 15,000 15,000 30,000 58,330 25,923 26,875 20,000 10,000 20,325 10,000 14,680 10,000 5,000 5,000 0 0 0 2013 2014 2013 2014 2013 2014 Cash 20,000 R
Slide 21: Forward-looking statements
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 i
Slide 22: THE END
THE END 22 ABS-CBN Investor Presentation