ABS-CBN EBITDA up 18%, profits 500%
ABS-CBN Broadcasting Corp. showed indomitable resilience in 2003, with EBITDA (earnings before interest, taxes, depreciation and amortization) surging 18% to P4.295 billion from P3.642 billion in 2002. EBITDA reflects the company's ability to generate cash from operating its business units, cash which can be used for paying off debt and for investing in promising new projects.
Randy Estrellado, ABS-CBN chief financial officer, attributed the company's strong EBITDA performance to management's determined efforts to "drive revenues, optimize operating efficiencies and closely manage capital spending." The cash pile improves ABS-CBN's financial position and ensures it can settle all obligations due in the next 12 months. Net interest bearing debt in 2003 was down to P4.21 billion and net debt-to-equity stood at 32% versus 46% the previous year.
Reaping the benefits of focusing on its core business after closing down unprofitable units in 2002,
ABS-CBN's 2003 net income soared 500% to P1.009 billion from P166 million the previous year. Excluding the impact of losses from discontinued operations, net income would have amounted to P1.011 billion, 131% higher than P438 million in 2002.