1Q 2017 Investors Briefing Financial and Operating Results May 19, 2017
Business Segments Media Networks & Studio Entertainment Digital & Interactive Media - Entertainment - News - Global - Film & Music - DTT - Sports - Cable networks - Publishing - Online - Mobile - Over-the-Top Cable, Satellite & Broadband - Pay TV (Cable & Satellite) - Broadband Consumer Products & Experiences - Live events - Themepark - Home shopping - ABS-CBN store
Consolidated 1Q 2017 Financial Results (In millions Php) Revenue EBITDA Net Income 9,894-3% 9,576 2,164-19% 761 1,749-59% 314 Net income attributable to parent is P422M in 1Q 2017
Consolidated 1Q 2017 Financial Results Net Income Margin EBITDA Margin 8% - 5% 3% 22% - 4% 18%
Consolidated 1Q 2017 Revenue BY REVENUE CATEGORY BY GEOGRAPHICAL LOCATION - 3% 1,536 16% - 3% 1,414 15% 4,305 44% 4,736 49% 8,358 84% 8,162 85% 5,589 56% 4,840 51% Ad Sales Consumer Domestic International
Consolidated 1Q 2017 Costs and Expenses 8,868 9,173 + 3% 3,141 3,112-1% 2,933 3,179 + 8% 2,794 2,882 + 3% GAEX Cost of Sales Production Cost
Consolidated 1Q 2017 Segment Report Operating Revenue Net Income NI Attributable to Parent Segment Media Networks & Studio Entertainment 7,026 6,414 842 472 874 528 Margin 12% 7% 12% 8% Cable, Satellite & Broadband 2,069 2,298 21 20 14 11 Margin 1% 1% 1% 0% Digital & Interactive Media 281 410 (176) (191) (127) (137) Consumer Product & Experience 517 453 74 13 78 20
Digital Terrestrial Television 3,000 2,500 2,000 1,500 1,000 500 - DTT Distribution 2016 Jan Feb March April Actual Budget More than 2.7 million cumulative boxes sold as of March Average of 150k boxes sold per month in 1Q 2017 and more than 480k boxes sold in 2017. 21%
DTT : Changing the distribution landscape Total Philippines - Household Mix by Platform Total Philippines Urban Philippines Mega Manila Metro Manila HOMES (in Thousands) 18,935 9,857 5,267 3,032 CABLE or DTT HOMES 31.7% 37.7% 51.4% 64.2% Cabled Homes 23.8% 24.1% 27.5% 38.8% DTT Homes 7.9% 13.6% 23.9% 25.4% NON CABLE & NON DTT HOMES 68.3% 62.3% 48.6% 35.8% Source: Kantar Media - May 1-14, 2017
DTT : Audience Shares TOTAL PHILIPPINES CHANNELS MEGA MANILA CHANNELS HOMES HOMES SHARE CABLE or DTH HH SHARE CABLE or DTH HH NON CABLE & NON DTT HH TOTAL TV 100 100 100 ABS-CBN 45 42 47 GMA 33 18 42 CINEMO + YEY! 3 8 0 NON CABLE & NON DTT HH TOTAL TV 100 100 100 ABS-CBN 35 39 29 GMA 37 22 55 CINEMO + YEY! 7 12 0 Source: Kantar Media - May 1-14, 2017
Free-to-Air Advertising Revenue 5,589-13% 4,840 Total Day National Audience Share for 1Q 2017 CHANNEL 2016 1Q 2017 ABS-CBN 49.58 51.12 GMA 7 33.80 34.68 TV 5 6.50 5.78 Other FTA 4.10 3.27 Other Cable 6.50 5.60 Source: Kantar Media TV Ratings Measurement
Channel 2 National Audience Share ABS CBN Channel 2 leads across all time blocks Morning Block (6AM-12NN) Noontime Block (12NN-3PM) 35.40 36.69 38.97 34.36 41.80 37.77 45.38 34.68 8.72 6.45 6.00 3.35 Q12016 Q12017 Q12016 Q12017 ABS-CBN GMA Afternoon Block (3PM-6PM) Primetime Block (6PM-12MN) TV5 41.13 44.44 37.07 36.17 49.30 47.74 32.42 34.27 7.24 6.27 6.22 6.28 Q12016 Q12017 Q12016 Q12017 Source: Kantar Media TV Audience Measurement Total Homes, Total Philippines (Urban + Rural) Period covered excludes Holy Week
ABS-CBN leads in total day national ratings with shows dominating Top 20 spots in 2017 RANK CHANNEL PROGRAM RATINGS 1 ABS-CBN FPJ's Ang Probinsyano Mon - Fri 38.4 2 ABS-CBN Your Face Sounds Familiar Kids Sunday Sun 36.5 3 ABS-CBN Your Face Sounds Familiar Kids Saturday Sat 35.1 4 ABS-CBN Wansapanataym Sun 32.8 5 ABS-CBN MMK 25 Sat 30.6 6 ABS-CBN TV Patrol Weekday Mon - Fri 29.9 7 ABS-CBN My Dear Heart Mon - Fri 28.2 8 ABS-CBN Miss Universe Mon - Fri 27.4 9 ABS-CBN Home Sweetie Home Sat 25.4 10 ABS-CBN Magpahanggang Wakas Mon - Fri 25.0 11 GMA Encantadia Mon - Fri 24.8 12 ABS-CBN Goin' Bulilit Sun 23.3 13 GMA Magpakailanman Sat 21.2 14 ABS-CBN Wildflower Mon - Fri 21.6 15 GMA Pepito Manaloto Ang Tunay na Kwento Sat 20.9 16 GMA 24 Oras Weekday Mon - Fri 20.8 17 GMA Alyas Robinhood Mon - Fri 20.4 18 ABS-CBN Pinoy Big Brother Lucky Season 7 Dream Team The Big Night Sat & Sun 20.2 19 ABS-CBN TV Patrol Weekend Saturday Sat 20.0 20 ABS-CBN Rated K Handa Na Ba Kayo? Sun 19.8 Source: Kantar Media TV Audience Measurement Indivs 13+, National
TV Patrol & UKG: Most watched news programs PRIMETIME NATIONAL RATINGS MORNING NATIONAL RATINGS 35.0 30.0 6.0 25.0 20.0 4.0 15.0 10.0 2.0 5.0-2016 1Q 2017 TV Patrol 24 Oras - 2016 1Q 2017 Umagang Kay Ganda Unang Hirit *TV Patrol ratings based on quarterly average
Sports & Action Leading local channel that provides real time update of various sports 3.5 3.4 properties 3.3 Adding new sports property through 3.2 partnership deal with Premier 3.1 Volleyball League. 3.0 2.9 Sports Channel audience share 2.8 continue to improve since beginning 2.7 of the year. 2.6 JAN 1-15 JAN 16-31 Share FEB 1-15 FEB 16-28 MAR 1-15 MAR 16-31
Cable Channels 5 cable channels included in the Top 15 list of highest rated channels with Cinema One ranking Number 1 Rank Top Cable Channels Ratings % 1 Cinema One 0.7 2 Pinoy Box Office 0.6 3 Disney Channel 0.4 4 Cartoon Network 0.4 5 Star Movies 0.4 6 HBO 0.3 7 Fox Filipino 0.2 8 Disney Junior 0.2 9 Cinemo 0.2 10 Teleradyo 0.1 11 Jeepney TV 0.1 12 Basketball TV 0.1 13 Yey 0.1 14 National Geographic 0.1 15 Fox 0.1 3.2 3.4 2.9 ABS-CBN keeps lead in channel ratings among other cable channels and with over 346 active cable operators nationwide MEDIA NOW Ratings 1.3 1.5 1.3 ABS-CBN Cable 2015 2016 1Q 2017 77 148 Revenue - 43% 72 57 Source: Kantar Media TV Audience Measurement Cabled Indivs Date covered: 2015 Mar 2017 (excluding Holy Week); 6AM 12MN Airtime Consumer
International Business Revenue 1,536-8% 1,413 TFC Channels Program Syndication + 343% 31 7 - TFC Viewership remains at 3 million level as of March 2017 - ABS-CBN Content now available in more than 50 countries Program Syndication Territories ASIA AFRICA OTHERS Cambodia Kenya Mexico Indonesia Nigeria Peru Malaysia Seychelles Kazakhstan Myanmar Thailand Vietnam Middle East Tanzania Uganda
Film & Music Revenue Star Music continuously providing quality albums. 332-10% 300 PHP 600 million gross receipts from movies produced in 1Q 2017.
Cable, Satellite & Broadband One Sky 2,069 Revenue + 11% 2,299 Total revenues grew by P229M or 11% driven by a 33% increase in broadband subscribers. SKY subscribers exclusive offerings Fly Away Sky Mobi Our broadband subscriber base continues to expand, growing by 22% in 1Q 2017. DTH subscribers reached 161k in 1Q. 849K 154 5 Sky Subscribers 1.04M 205 161 + 22% 690 672 Cable Cable - DTH Broadband
Digital and Interactive Media ABS-CBN.com remains the #1 Philippine based website across all categories in the Philippines iwant TV and TFC.tv has 7M combined active subscribers to date spending an average of 320 minutes per month 5.1M 59K Iwant TV 6.9M TFC.TV +35% 63K ABS-CBN Mobile ended the year with over 1 million subscriber count and over 5,000 activations ABS-CBN Mobile subscribers 606 +80% 1,089 ABS-CBN digital properties generated Php107M revenue in 2017, 26% up vs. last year, driven mainly by news and corporate website Activity Platform No. of Subscribers Watching 770,898 Watching (Overseas) 62,912 Watching 6,861 Listening and watching 51,668 Reading 1,071,643 Movie Community Coming soon
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Consumer Products and Experiences Generated P119M in total revenue in 1Q 2017, 77k attendance as of March. A total of 66 role playing establishments with 115 activities. Summer Promos Our events bring the ABS experience closer to our audiences with over 80M revenues generated in 1Q.
Consumer Products and Experiences Continuously offers new products and promos to assure quality home TV shopping and online experience Generated P241M in revenues, 15% higher than 1Q 2016. O-Shopping Revenue + 15% 241 208 ABS-CBN Store now expanding distribution to various pop-up stores across the metro. Store Locations Trinoma Fishermall Glorietta Robinsons Ermita Robinsons Imus
Capital Expenditures Spent Php 1.7B out of the Php 8.0B budget for 2017 8,779 12,060 7,715 + 47% 8,026 6,338 7,715 3,647 5,258 1,658 1,103 486 69 1Q 2017 3,302 1,077 2017 BUDGET Program Rights Cable, Satellite & Broadband Digital initiatives, Maintenance & Others
Balance Sheet Highlights Total Assets Total Borrowings Equity 72,734 71,568 20,472 20,394 31,692 30,952 2016 1Q 2017 2016 1Q 2017 2016 1Q 2017 Ratios 2016 1Q 2017 Current 2.02 2.02 Debt-to-Equity 0.65 0.66 Net Debt-to-Equity 0.30 0.33
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.