2nd Quarter 2015 Investor’s BriefingFinancial and Operating Results
August 12, 2015
1
Operational Highlights
2
NCAA launched season 91 and re-unites with
ABS-CBN
ABS-CBN’s biggest stars set to launch
blockbuster movies exclusively for mobile
ABS-CBN launched multi-channel network for next
online stars
ABS-CBN’s newest drama series “On The Wings of
Love” is set to bring romantic and feel-good vibes on
Primetime Bida
KidZania Manila officially opened its doors to the public on August 7, 2015, letting children
take on different roles in real-life establishments
ABS-CBN teams up with 22 groups for biggest coverage of 2016
national elections
7,559 8,236
8,819 9,500
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1H'14 1H'15
Ad Revenues Consumer Sales
3
Revenues - Reported
8.3%
7.7%
9.0%
For the period ended June 30, 2015
16,378 17,736
Total revenues increased 8.3%
In PHP Millions
54%54%
46%46%
4,794 5,217
4,749 5,407
5,549 5,419
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
1H'14 1H'15
2.3%
Costs and Expenses
4
For the period ended June 30, 2015
8.8%
Production costs down 2.3%
13.9%
6.3%
Production
Costs
Cost of Sales
& Services
GAEX
15,092 16,043In PHP Millions
3,430 3,888
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1H'14 1H'15
16,378 17,736
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1H'14 1H'15
995
1,198
0
200
400
600
800
1,000
1,200
1,400
1H'14 1H'15
Financial Summary
5
Net Revenues
In PHP Millions
For the period ended June 30, 2015
EBITDA Net Income
8.3% 13.4% 20.4%
1H’14 1H’15
EBTDA MARGIN 20.9% 21.9%
1H’14 1H’15
NI MARGIN 6.1% 6.8%
Business Segments - Reported
6
** Numbers presented are net of ABS-CBNmobile TVCs and intersegment eliminations.
For the period ended June 30, 2015
TV and Studio business increased significantly by 38.3%
1H'15 1H'14 % Ch 1H'15 1H'14 % Ch 1H'15 1H'14 % Ch
A. TV and Studio 13,173 12,502 5.4% 3,581 3,063 16.9% 1,914 1,384 38.3%
Margins 27.2% 24.5% 14.5% 11.1%
B. Pay TV Networks 3,991 3,822 4.4% 841 879 -4.3% 34 109 -68.8%
Margins 21.1% 23.0% 0.9% 2.9%
C. New Business 881 181 386.7% -534 -512 -4.3% -750 -498 -50.8%
D. Eliminations -309 -127
TOTAL 17,736 16,378 8.3% 3,888 3,430 13.4% 1,198 995 20.4%
Margins 21.9% 20.9% 6.8% 6.1%
In Php MillionsRevenues EBITDA Net Income
5,250 5,198
1H'14 1H'15
Production Costs
8,162 8,742
1H'14 1H'15
Net Revenues
TV and Studio – Broadcast
7
In PHP Millions
ABS-CBN Becomes Stronger in Nationwide Viewership
Broadcast revenues increased by 7.1% fuelled by ABS-CBN’s continued leadership in audience shares and ratings. Almost half of the Philippine households tuned in to ABS-CBN for the
month of June.
1.0%
7.1%
* Net of ABS-CBNmobile TVCs
Source: Kantar Media
Metro Total Metro
Manila PH ManilaABS-CBN 2 44 31 33 50 36 38GMA 7 35 42 36 31 40 34TV 5 7 8 7 8 8 7Others 14 19 24 11 16 21
CHANNELSTOTAL DAY PRIMETIME
Total PHMega
Manila
Mega
Manila
2nd Quarter Audience Share
Audience Share
8
Source: Kantar Media
Audience Share
9
ABS-CBN sustained its leadership in nationwide TV viewing across urban and rural homes
Source: Kantar Media
TV and Studio – Broadcast
10
2nd Quarter 2015 Top 20 Programs
ABS-CBN shows dominated national ratings
Source: Kantar Media, June 2015
Rank Channel Program
1 ABS-CBN THE VOICE KIDS SUNDAY 40.0 Weekend
2 ABS-CBN THE VOICE KIDS SATURDAY 39.1 Weekend
3 ABS-CBN MMK ANG TAHANAN MO 37.8 Weekend
4 ABS-CBN YOUR FACE SOUNDS FAMILIAR SATURDAY 37.6 Weekend
5 ABS-CBN YOUR FACE SOUNDS FAMILIAR SUNDAY 36.7 Weekend
6 ABS-CBN NATHANIEL 34.9 Weekday
7 ABS-CBN PANGAKO SA'YO 33.5 Weekday
8 ABS-CBN RATED K HANDA NA BA KAYO? 28.6 Weekend
9 ABS-CBN TV PATROL WEEKDAY 28.2 Weekday
10 ABS-CBN WANSAPANATYM 28.2 Weekend
11 ABS-CBN HOME SWEETIE HOME 24.1 Weekend
12 ABS-CBN BRIDGES OF LOVE 22.0 Weekday
13 ABS-CBN PASION DE AMOR 21.2 Weekday
14 ABS-CBN GOIN' BULILIT 21.0 Weekend
15 GMA MAGPAKAILANMAN 20.0 Weekend
16 ABS-CBN PERFECT TOGETHER PAUL & TONI'S WEDDING SPECIAL19.6 Weekend
17 ABS-CBN MGA KWENTO NI MARC LOGAN 19.3 Weekend
18 ABS-CBN PINOY BIG BROTHER 737 SATURDAY 19.2 Weekend
19 GMA KAPUSO MO, JESSICA SOHO 18.3 Weekend
20 ABS-CBN PINOY BIG BROTHER 737 SUNDAY 18.0 Weekend
Share
TV and Studio – Broadcast
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ABS-CBN continues to be the channel of choice
“Thank You sa Malasakit: Pope Francis saPilipinas”, ABS-CBN’s Special Coverage of Pope Francis’ visit last January 15-19, 2015.
President Benigno Aquino Jr.’s “State of The Nation Address 2015 The ABS-CBN Special Coverage” dominated the ratings.
13.2%
24.0%
More viewers tuned in to ABS-CBN for “Battle of Greatness: Pacquiao vs Mayweather”.
19.0%
vs 10.9%
vs 20.4%
vs 10.4%
* Average national TV rating; Kantar Media
1,741 1,755
833 726
298 259
1H'14 1H'15
Net Revenues
Advertising
Retails andOthers
Subscription 1,713 1,637
1H'14 1H'15
Cost of Sales and Services
TV and Studio – Global
12
IPTV and TFC.TV Subscribers
Global’s subscription business continues to grow, with subscriber count increasing by 5% versus 1st
half of last year.
Overall viewership count increased by 3%. We continue to experience a double-digit subscriber growth in Canada, and single-digit growth in other territories.
In PHP Millions
4.4%
4.6%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
IPTV TFC.TV
2014 2015
TFC kicks off for the very first time, a four-pillar event this year as a tribute to the “Galing ng Filipino”.
TFC Cinema One Global
ANC Myx
Lifestyle Network DZMM Teleradyo
ABS-CBN Sports + Action MOR 101.9
TFC Channels
30.0%
85.3%
413 368
1H'14 1H'15
Cost of Sales and Services
876776
1H'14 1H'15
Net Revenues
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TV and Studio – Films and Music
In PHP Millions
11.4%
10.9%
Star Cinema released 8 movies in the first half of 2015.
Branded entertainment increased significantly by 8% compared to 2014.
Kapamilya Blockbusters Rating
Pagpag 18.4% vs 11.3%
Starting Over Again 15.0% vs 13.8%
She’s The One 15.0% vs 12.6%
Da Possessed 15.6% vs 12.7%
It Takes A Man And A Woman 15.6% vs 14.9%
My Illegal Wife 14.3% vs 9.4%
DISTRIBUTION PLATFORMS
- Theatrical- Free to Air- Pay TV- International Syndication- OTT- Digital/Online/Mobile
627 661
1H'14 1H'15
Direct Costs and Expenses
744935
1H'14 1H'15
Net Revenues
TV and Studio – Narrowcast and Sports
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In PHP Millions
Increase of Php191M fuelled by theatrical release of “That Thing Called Tadhana”, pay-per view subscription of Pacquiao-Mayweather fight, and release of best-selling books during the year.
5.4%
25.7%
Number of Books Sold YTD 2014 YTD 2015
Stupid is Forever 37,000 367,000
Dear Alex 47,500 65,000
Help! Ayoko na sa Syota Ko 20,500 -
Make Your Nanay Proud 10,500 -
Dear MOR 8,500 -
Stupid is Forevermore - 50,000
DJ ChaCha - 10,000
Besties - 35,000
Cinema One is undisputed number one channel in the first quarter of
2015 .
Digital Statistics
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Number 1 vs Philippine Websites Number 5 vs All Websites
*Source Alexa. Basis of ranking: local page views and local reach
First Filipino channel to reach the one billion mark on the popular video-sharing website.
Over 74.6- million page views garnered by the video-on-demand and livestreaming service iWanTV for the month of June.
Ranking* Property
1 ABS-CBNnews.com
2 Inquirer.net
3 Lazada
4 OLX
5 Rappler
6 GMA
7 Metro Deal
8 BPI Online
9 ABS-CBN.com
10 Philstar
**Source Alexa. Basis of ranking: global page views and global reach
Ranking** Website
1 Facebook.com
2 Google.com.ph
3 Google.com
4 Youtube.com
5 ABS-CBNnews.com
6 Yahoo.com
7 Wikipedia.com
8 Amazon.com
9 Blogspot.com
10 Inquirer.net
ABS-CBNnews.com ranks 4th in Top 10 Biggest Facebook Publisher for June 2015.
International Distribution
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Recognized in the global arena as a reliable foreign content provider.
ABS-CBN International Distribution has been a premier source of high quality Filipino programming in over 50 territories all over the world and has sold over 30,000 hours of content worldwide.
ABS-CBN International Distribution welcomed 2015 by closing deals with first-time buyers from Kazakhstan, Macedonia, and Thailand.
AIRLINESSold Star Cinema Movies to 12 different airlines
ASIA
Malaysia
Vietnam
Cambodia
Thailand
Kazakhstan
AFRICA
Kenya
Uganda
Tanzania
Nigeria
2,539 2,733
1H'14 1H'15
Direct Costs and Expenses
3,822 3,991
1H'14 1H'15
Net Revenues
Pay TV Networks – Sky
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In PHP Millions
Our broadband subscriber base continues to expand, growing by 30% in 2015.
Total revenues grew by 4.4%driven by a 2% increase in cable revenues and 25% increase in broadband revenues.
4.4%
7.6%
Sky opens over 190 channels as 25th year
anniversary offer
2nd Qtr Broadband Subscribers
Highest Pay-Per View Event
88,695
115,608
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
1H'14 1H'15
All –day movie channel
All-day kid’s channel
News
Curriculum-based channel
• More than 500,000 boxes to date.
• Additional 4 exclusive channels with no additional cost.
Digital Terrestrial TV (DTT)
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COVERAGE AREABenguet
PangasinanTarlac
Nueva EcijaPampanga
BulacanMetro Manila
RizalCaviteLaguna
Metro Cebu
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More than doubled the ARPU vs Q1 2015.
-
20
40
60
80
100
Q1 2015 Q2 2015
ARPU
40
90
602
1,553 917
610
1,596 3,178
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Program Rights Pay TV and Digital Initiative Soundstage, Maintenance
and Others
1H'15 Remaining Balance
Capital Expenditures
20
In P
HP
Mill
ion
s
Spent Php 3.1B out of the Php 8.5B budget for 2015
1,212
3,149
4,095
Balance Sheet Highlights
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Ratios 2014 1H’15
Current 2.1 1.9
Debt-to-Equity 0.8 0.8
Net Debt-to-Equity 0.3 0.3
In PHP Millions
ABS-CBN Corporation’s Outstanding P6.0-Billion Bond Issuance Maintains Highest Credit Rating of Aaa from PRS
67,237 68,920
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2014 1H'15
Total Assets
20,325 20,308
0
5,000
10,000
15,000
20,000
25,000
30,000
2014 1H'15
Total Borrowings
26,875 26,894
0
5,000
10,000
15,000
20,000
25,000
30,000
2014 1H'15
Equity
13,238 12,252
0
5,000
10,000
15,000
20,000
2014 1H'15
Cash
Recognition and Awards
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ABS-CBN, the only Philippine media company in Finance Asia’s list of
“Asia’s Best Companies 2015”
Company of the Year second runner-up at the 13th
Philippine Quill Awards
ABS-CBN wins at 2015 New York FestABS-CBN won a bronze medal in the Cinematography category at the prestigious New York Festivals World’s Best TV and Films 2015 for its
documentary “Yolanda (Haiyan).”
Best TV Station by 12 different award giving bodies
KBP Golden Dove Awards, USTv Student’s Choice Awards, Gawad Tanglaw Awards, Aral Parangal Awards, Gawad Kamalayan Awards, Eastern Visayas State University’s Students’ Choice Mass Media Awards, Paragala Central Luzon Media Awards, and Andurog Awards,
among others.
Except for historical and operating data and other information of historical matters, thestatements contained herein are “forward-looking statements”. The words “believe”, “intend”,“plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will” or other similar words arefrequently used to indicate these forward looking statements. Any such forward-lookingstatement is not a guarantee of future performance and involves a number of known andunknown risks, uncertainties and other factors that could cause the actual performance, financialcondition or results of operation of ABS-CBN to be materially different from any futureperformance, financial condition or results of operation implied by such forward-lookingstatement.
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THE END
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