Lopez Holdings

 

Report of Carlo L. Katigbak, President and CEO of ABS-CBN Corporation, at the ABS-CBN Annual Stockholders' Meeting held the Dolphy Theater on May 5, 2016
Quezon City

Mga Kapamilya,

Today we celebrate and give thanks for an amazing journey – one that started 62 years ago. In that span of time, ABS-CBN has been at the forefront of many milestones in our industry and in our country.

Yet, what makes ABS-CBN unique is that these achievements are byproducts of our mission rather than our goal. Scratch beneath the surface of everything we do and you will find this mission reflected in our way of thinking, in our business and in our actions.

In 2015, we introduced to all employees the Kapamilya Way. In this period of significant growth and expansion, we needed to remind every kapamilya that our core is defined by a set of values that make ABS-CBN unique.

This ensures continuity not only of the business but more importantly, continuity of heart and spirit in the years to come. I am pleased to report that these efforts have led to ABS-CBN being named among the most trusted brands in the country, and the only media company in The EON Stakeholder Relations Group’s 2015 Philippine Trust Index.

The Kapamilya Way goes beyond just values. It includes fostering the talent, welfare and well-being of our kapamilyas. By focusing on people first, we are provided a greater chance of success for everything that we’ve set out to do.

As our business evolves, our kapamilyas have had to learn new skills and new ways of thinking. In 2015, we launched the ABS-CBN University to further develop the potential of our employees. The University conducted over 23 courses with over 1,000 hours of training and 1,700 participants.

We like saying that if we focus on our mission, success will follow. If we focus on service, the business will grow. If we focus on the Filipino, we will always be rewarded.

In 2015, your company posted its best net income result since 2010. I am pleased to report that your company delivered P2.5 billion in net income– a 25% increase from the previous year. Our net income margin grew 10%. EBITDA grew 6% with revenues growing by 14%.

These results tell only a portion of the story. A look at our TV and Studio Entertainment segment shows an even more impressive result. Segment revenues grew by 11% and segment net income grew by an impressive 32%. These results show that our core business continues to deliver healthy growth even as we invest in new businesses.

Given these results, we are thankful that Finance Asia named ABS-CBN among the top 3 Best Managed Mid Cap companies in the Philippines.

A number of initiatives in our current business have helped to deliver these results.

We reframed our ad sales approach and partnered with the industry in adopting a new pricing standard called CPIRP or Cost per Individual Rating Point. This framework prices our ad spots based on the ratings delivered by a show. In turn, this allows us to invest even more into programs to deliver maximum ratings.

We have had our best ratings performance since the adoption of the Kantar TV Audience Measurement in 2012. ABS-CBN delivered a 50% average audience share in primetime for the whole of 2015 – our highest since 2012. Our whole day audience share remained steady at 43%. All the top 20 shows on TV were ABS-CBN shows led by FPJ’s Ang Probinsyano and The Voice Kids Sundays, while TV Patrol continues to be the #1 newscast on TV.

As testament to the quality of our programs, other countries have began licensing and airing our TV shows. Vietnam secured 500 hours of programs, Thailand – 400 hours with an additional 900 hours of shows in six other territories. Our show Pangako Sa ‘Yo made history for being the first Philippine format acquired by Mexico – the home of telenovelas.

Our newly launched Sports+Action channel delivered an impressive year – with a 69% increase in ratings while remaining the #1 UHF network in the Philippines and no. 4 among all Free to Air networks.

Our cable channels group remained the no.1 studio group on pay TV with a 19% share of all cable audiences.

DZMM continued to be the no.1 AM station in Mega Manila. Our MOR stations were no. 1 in nine markets nationwide.

Our feature films group set new box office records with two movies: “A Second Chance” and “Praybet Benjamin 2” which are now the top two highest grossing Filipino films of all time. This record breaking year was also helped by our Global group releasing more of our films internationally– an initiative that we continue to grow.

Our Publishing group celebrated its 20th anniversary by selling over 750,000 books - holding the No. 1 spot in the National Book Store Bestsellers List and dominating the Top 5 spots on the list for all twelve months of 2015.

We are committed to transitioning ABS-CBN into an agile digital company.

The launch of TV+ in 2015 marked the birth of digital free television in the Philippines. At the end of 2015, we sold over 940,000 TV Plus boxes and are well on our way to achieving 50% penetration in Mega Manila by the end of this year.

Our Digital Media group has grown its online properties and cemented its position as the #1 group of websites in the country. ABS-CBN.com delivered close to 2.5 billion page views with over 313 million users from all over the world.

ABS-CBN Mobile showed steady improvement in delivering on its numbers. Its ARPU has now doubled since the start of 2015.

Sky Cable celebrated its 25th anniversary with a 44% growth in its broadband subscriber base.

Our Global division saw a 66% growth in subscribers paying to watch TFC over the Internet. Across all its platforms, we now have a total of 3.1 million viewers of TFC across the world.

We remain committed to serving our communities.

In its 25th year of service, ABS-CBN Lingkod Kapamilya Foundation has grown to serve a broad spectrum of initiatives, all bound by a common goal, that of being in the Service of the Filipino.

The rehabilitation work in Yolanda affected areas continued with Sagip Kapamilya turning over 127 classrooms in 42 sites and implementing various livelihood projects that have benefited over 42,000 individuals.

After Typhoon Lando swept the country, Sagip Kapamilya was able to provide assistance for 17,000 families or 88,000 individuals.

Today we say thank you to all of your for your trust and support all these years.

We say thank you to all our kapamilyas for sharing this journey and for giving and serving beyond the call of duty.

Today we say thank you to Charo Santos-Concio. Charo marked her final year as President and CEO of ABS-CBN in 2015.

Under her leadership, she put the ABS-CBN values at the front and center of every organizational decision – big or small. She oversaw the continued dominance of our creative groups across all our platforms while managing the significant expansion program of our company.

Under her watch we have seen our revenues double – from 19.6B in 2008 to 38.3B in 2015. Our net income also close to doubled – from 1.4B in 2008 to 2.5B in 2015.

For all these…and a whole lot more, we say thank you to Charo.

Today, as we say thank you, we recommit to living by our values as a company. We recommit to our mission - for it is not only a mission but a vision and a dream, one that has survived the test of time – reaching across generations and decades. It is a dream we continue to dream together – one that we will pursue for generations and decades to come. It is the Kapamilya Way – to be always In the Service of the Filipino.

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CONTACT US

Lopez Holdings Corporation (formerly Benpres Holdings Corporation)
4/F Benpres Building, Exchange Road, 1605 Pasig City, Philippines

  • Trunkline: (632) 449-2345
  • Fax: (632) 634-3009