ABS-CBN forecasts down. (Review).(Brief Article)

Television Asia, December, 2001

Year-end earnings forecasts for dominant broadcaster, ABS-CBN Broadcasting Corp, may be down by up to 21 percent, according to brokerage firm Philippine Equity Partners Inc (PEP), which has downgraded its full-year net earnings forecast for the company to US$35 million from the US43 million posted last year.

The earnings downgrade is due to the higher cost of doing business, including production costs, salaries and wages, which are growing faster than expected. ABS-CBN continues to defend its 45-percent audience share and 35-percent advertising share, PEP reported. PEP adjusted its previous forecast from a five-percent growth in ad minutes and 15-percent growth in ad rates to flat growth rates in 2002.