apercentage of advertising revenue from ABS

Transcription

table of
contents
2
performance highlights
3
financial highlights
4
message of the chairman
6
financial review
10 we are abs-cbn
management's responsibility for financial statements
report of independent auditors
20
22 financial statements
balance sheets
statements of income
statements of changes in stocholders’ equity
statements of cash flows
notes to financial statements
59
62
50 years of abs-cbn and philippine television
in memoriam
board of directors
64 management committee
66
67
71
awards & recognition
list of officers
corporate addresses
abs-cbn annual report 2003
1
performance
highlights
TOP RATING PROGRAMS
6AM to 12MN, Mega Manila
Overall Comparative Channel Audience Share
6am to 12mn, Mega Manila
AGB Philippines Telemonitor, Mega Manila Households Data
January to December 2003
Other UHF
1.8%
Other VHF
6.8%
ABC
1.3%
Total Cable
13.2%
ABS-CBN
40.7%
Studio 23
3.9%
GMA
34.9%
Rank Channel
Program
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
METEOR RAIN
METEOR GARDEN
METEOR FEVER IN MANILA
BASTA'T KASAMA KITA
METEOR GARDEN II
KAY TAGAL KANG HININTAY
DARATING ANG UMAGA
BITUIN
SA PUSO KO IINGATAN KA
SANA'Y WALA NANG WAKAS
METEOR GARDEN REWIND
GAME KNB?
SA DULO NG WALANG HANGGAN
IT MIGHT BE YOU
NEXT LEVEL NA GKNB?
LOVE SCAR
TV PATROL
ENDLESS LOVE
MAALAALA MO KAYA
MAGANDANG GABI BAYAN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
GMA
ABS-CBN
ABS-CBN
Ratings
39.9%
38.5
37.2
35.1
34.9
34.6
33.8
33.1
32.2
32.0
31.4
31.3
30.9
30.1
29.4
28.6
28.1
27.5
27.3
25.8
Audience Share
66.3%
65.3
52.1
50.1
63.1
50.5
49.0
50.1
48.2
46.7
62.3
48.5
47.3
45.2
45.4
41.5
50.6
39.0
47.1
44.2
January to December2003
TOP RATING ENTERTAINMENT PROGRAMS
Overall Comparative Channel Ad Minutes
6am to 12mn
AC Nielsen Monitoring System
January to December 2003
Other VHF
15.8%
Other UHF
6.3%
Total Cable
9.8%
ABC
3.1%
ABS-CBN
29.4%
GMA
30.3%
Studio 23
5.2%
Rank Channel
Program
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
METEOR RAIN
METEOR GARDEN
METEOR FEVER IN MANILA
BASTA'T KASAMA KITA
METEOR GARDEN II
DARATING ANG UMAGA
BITUIN
SA PUSO KO IINGATAN KA
SANA'Y WALA NANG WAKAS
METEOR GARDEN REWIND
GAME KNB?
SA DULO NG WALANG HANGGAN
IT MIGHT BE YOU
NEXT LEVEL NA GKNB?
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
Ratings
39.9%
38.5
37.2
35.1
34.9
34.6
33.8
33.1
32.2
32.0
31.4
31.3
30.9
30.1
29.4
Audience Share
66.3%
65.3
52.1
50.1
63.1
50.5
49.0
50.1
48.2
46.7
62.3
48.5
47.3
45.2
45.4
Overall Comparative Channel Audience Share
6am to 12mn • 9 Key Cities
TOP RATING NEWS AND CURRENT AFFAIRS PROGRAMS
PSRC 2003 Quarterly DAR TVI Surveys
Other UHF
0.1%
Total Cable
2.5%
Other VHF
1.2%
ABS-CBN
70.7%
ABC
0.1%
GMA
24.3%
Studio 23
1.2%
* Baguio, Naga, Bacolod, Cagayan de Oro, Zamboanga,
Dagupan, Legazpi, Iloilo and General Santos
2
Rank
1
2
3
4
5
6
7
8
9
10
Channel
ABS-CBN
ABS-CBN
GMA
GMA
GMA
GMA
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
Program
TV PATROL
MAGANDANG GABI BAYAN
IMBESTIGADOR
FRONTPAGE Ulat ni Mel Tiangco
WISH KO LANG!
EXTRA! EXTRA!*
WILLINGLY YOURS
MISSION: X Early Edition
ETC.
INSIDER
*Note: Extra! Extra! covers its 2pm & 5:30pm airings
Ratings
28.1%
25.8
22.2
18.4
14.8
13.9
13.8
13.1
12.5
12.0
Audience Share
50.6%
44.2
36.8
32.7
40.6
34.5
35.7
37.6
36.0
37.2
financial
highlights
Amounts in Million Pesos
Parent Company
Consolidated
2003
2002
2003
2002
Net Revenues
8,231
7,293
12,715
10,909
Cost & Operating Expenses
6,304
5,633
10,401
9,276
Income From Operations
1,927
1,660
2,314
1,633
Operations After Income Tax
1,011
438
1,011
438
Net Income
1,009
166
1,009
166
EBITDA
3,714
3,031
4,295
3,642
Total Assets
20,998
20,963
22,203
21,738
Stockholders' Equity
13,108
12,091
13,108
12,091
1,585
1,413
2,074
1,482
1.31
0.22
1.31
0.22
8%
4%
8%
4%
Income From Continuing
Free Cash Flow
Earnings Per Share
Return On Equity
3
4
message of the
chairman
Fellow Shareholders,
I cannot begin to explain how exciting it is to introduce to you and help you get to
know better the people who make up the ABS-CBN Family.
Many of you know us from our products. The daily soap operas on television, the live
news reports on cable, the radio commentaries as you drive to work, the movies,
magazines, and CDs that vie for your free time on weekends.
But those of us who work here know that ABS-CBN is more than the sum of these
products.
No top-rated show, no certified box-office hit, no multi-platinum record, is made
without a group of creative individuals working together, often as one team (though
sometimes agreeably not), but always passionately committed to creating the best
content they can produce.
ABS-CBN is people — youthful, dynamic, imaginative people.
On a typical day in ABS-CBN (and there are no typical days in ABS-CBN), we argue about
programming directions, plan the logistics of nationwide news coverage, coordinate
cross-synergy promotions, and synchronize multi-channel sales strategies.
On one end of the globe, we plan the worldwide premiere of the latest cinematic
offering of our homegrown stars; while on the other end, we try out new ring tones and
downloads (perhaps the theme song and poster of the very same movie) that we hope
will appeal to teenagers of all ages.
ABS-CBN is people – brilliant, aggressive, adventurous people
The best and the brightest people from all walks of life converge in ABS-CBN. Here
their energies are unbound, free to create content across all our different media
platforms, supported by the latest in technology, and guided by broadcast and
entertainment veterans who have built the industry but remain young at heart.
In the following pages, you will meet just a few of the individuals that keep ABS-CBN
fresh and full of life. (And as you will see in the financial review elsewhere in this
annual report, also keep your Company strong, profitable, and growing.)
I have often said I have the best job in the world. As you go through these pages, I
think you will know why.
We are ABS-CBN.
We are the people working for you.
EUGENIO L. LOPEZ III
Chairman and CEO
5
financial
review
Consolidated airtime revenues increased by 14%, or
Php1,339 million, to Php10,858 million on the back of the
strong growth in advertising minutes, as the recovery in
MANAGEMENT DISCUSSION AND ANALYSIS OF
advertising spending in the second half of 2002 was
FINANCIAL CONDITION AND RESULTS OF
sustained in 2003 amidst an improved economic outlook
OPERATIONS FOR 2003
and stable consumer spending.
In 2003, ABS-CBN Broadcasting Corporation (ABS-CBN),
Parent airtime revenues, which consists of advertising
reaped the benefits of an improved economic environment,
revenues from TV-VHF (Channel 2), AM and FM radio, and
coupled with a stronger and leaner organization focused
the regional network, increased by 14% to Php9,960 million
on its core operations. As a result, ABS-CBN delivered
from Php8,752 million in 2002. Airtime revenues from
double-digit revenue, earnings, and cash flow growth,
Channel 2 alone, which accounts for 93% of parent airtime
despite a more competitive business environment.
revenues, grew by 15% as its commercial loading improved
to 50% from 42% the previous year.
Furthermore, ABS-CBN’s efforts to focus on
complementary businesses also bore fruit as this improved
Airtime revenues from subsidiaries increased by 17% to
performance can be seen not only in the principal business
Php898 million with all platforms registering growth in
of broadcasting, but in the remaining allied businesses of
2003. Studio 23’s airtime revenues, which accounts for 5%
cable and satellite programming, motion picture
of consolidated airtime revenues, increased by 15% to
production, and other content generation and distribution
Php588 million in 2003 as its commercial loading also
businesses.
improved to 9% from 6%.
CONSOLIDATED
Airtime Revenues and Other Broadcasting Related
Revenues
Airtime Revenues
Consolidated gross airtime and other broadcasting related
revenues increased by 12% to Php11,064 million in 2003
Variance
Amounts in Php mln
2003
2002
Php
%
Parent
Studio 23
Other Platforms
9,960 *
588
310
8,752
511
256
1,208
77
54
14%
15%
21%
9,519
1,339
14%
from Php9,914 million in 2002 with growth primarily
Total Airtime
coming from airtime revenues.
10,858
*Net of eliminated airtime revenues from intercompany transactions
PARENT COMPANY
Gross Revenues
Amounts in Php mln
Variance
2003
2002
Php
%
Airtime revenues
Other broadcasting related
10,021*
71
8,752
251
1,269
(180)
Total
10,092
9,003
1,089
*Before elimination from intercompany transactions
6
CONSOLIDATED
Variance
2003
2002
Php
%
14%
-72%
10,858
206
9,519
395
1,339
(189)
14%
-48%
12%
11,064
9,914
1,150
12%
Other broadcasting related revenues, on the other hand,
Aside from a healthy growth in subscribers, revenues also
decreased by 48% to Php206 million in 2003 from Php395
benefited from a 15% increase in DTH fees to US$23 as a
million in 2002, due to a drop in SMS-related revenues. In
fourth TV channel was included in the channel line up of
the first quarter of 2003, the Philippine Amusement and
DTH subscribers. The growth in subscribers and the
Gaming Corp. (PAGCOR) raised concerns that television
increase in DTH fees were partially offset, however, by
audience interaction via SMS represented a form of
lower installation revenues as the Company reduced its
gambling. As a result of this, the Company temporarily
prices to increase subscriber penetration rates so as to
limited further development and promotion of new SMS- or
saturate the market prior to the entry of competition.
text-based products and services. However, by the second
half of 2003, SMS revenues had picked up as new mobile
ABS-CBN Film Productions, a 100% owned subsidiary, was
services such as downloadable logos, picture messages,
established in the second quarter of 2003 to handle the
wallpapers and ring tones were launched in order to
Company’s movie production and distribution business.
harvest the ancillary business from the various programs of
This contributed Php337 million or 9% to total net sales
the Company.
and services. Under the trade name Star Cinema, it
released several blockbuster films in 2003 including
Deductions from airtime revenues increased by 8% to
Tanging Ina (No Ordinary Mom), which achieved an
Php1,981 million from Php1,830 million in 2002.
unprecedented first in Philippine box office history with
Deductions as a ratio to gross airtime revenues stood at
gross ticket sales of over Php178 million.
18% in 2003 lower than 2002 due to a slower increase in
marketing expenses compared to gross airtime revenues.
Creative Programs, Inc. (CPI), developer and producer of
cable television channels, reported a 7% increase in net
As a result, consolidated net airtime and other
sales and services to Php241 million from Php225 million in
broadcasting related revenues increased by 12% to
the previous year. CPI benefited from the subscriber
growth of ABS-CBN Global as Cinema One, the movie
channel of CPI, is included in the channel line up of ABS-
Net Sales and Services
CBN Global.
Net sales and services, which include subscription fees,
Wider circulation of ABS-CBN Publishing’s magazines as
sale of inventories, and non-broadcast related revenues,
well as increased sales from Star Records also contributed
increased by 29% to Php3,632 million in 2003 from
to the growth in total net sales and services.
Php2,825 million in 2002.
ABS-CBN Global’s net sales and services, which accounted
for 65% of total net sales and services, increased by 24% to
Php2,371 million in 2003 from Php1,918 million in 2002.
Bulk of ABS-CBN Global’s revenues came from subscription
revenues of its cable and direct-to-home service with an
estimated viewership base of 1.3 million by end 2003, up
Net Sales and Services
Amounts in Phpmln
2003
2002
Php
Variance
%
ABS-CBN Global
ABS-CBN Film Productions
Creative Programs, Inc.
ABS-CBN Publishing
Star Records
Other Subsidiaries
2,371
337
241
178
176
329
1,918
-225
174
165
343
453
337
16
4
11
(14)
24%
-7%
2%
7%
-4%
Total Net Sales and Services
3,632
2,825
807
29%
24% from a year ago. Of its total viewers, around 53% are
located in North America. Further, ABS-CBN Europe
launched its services in December 2003.
7
With strong growth of airtime revenues and net sales and
ABS-CBN Global’s cost of sales, which accounted for 68%
services, consolidated net revenues increased by 17% to
of total cost of sales, grew by 30% to Php1,234 million,
slightly higher than the growth of its net sales and services.
As mentioned earlier, as part of ABS-CBN Global’s strategy
Cost and Operating Expenses
to increase subscriber penetration rates, it reduced its
margins on the installation and sale of set-top boxes to its
Compared to net revenues, consolidated cost and
customers.
operating expenses increased by a lower rate of 12% to
Cash operating expenses, consisting of production cost,
cost of sales and services, and general and administrative
expenses, increased by 17% to Php8,364 million driven
primarily by the growth in cost of sales and services of
subsidiaries.
Cash Operating Expenses
Variance
Amounts in Php mln
2003
2002
Php
%
Production cost
Cost of sales and services
General and administrative
3,501
1,817
3,046
3,083
1,481
2,608
418
336
438
14%
23%
17%
Total Cash Operating Expenses
8,364
7,172
1,192
17%
Cost of Sales and Services
Amounts in Php mln
2003
2002
Php
Variance
ABS-CBN Global
ABS-CBN Film Productions
Creative Programs, Inc.
ABS-CBN Publishing
Star Records
Other Subsidiaries
1,234
126
71
115
82
189
948
-103
90
79
261
286
126
(32)
25
3
(72)
30%
--31%
28%
4%
-28%
Total Cost of Sales & Services
1,817
1,481
336
23%
General and administrative expenses (GAEX) increased by
17% to Php3,046 million from Php2,608 million in 2002.
The increase in GAEX was partly due to start-up expenses
for ABS-CBN Europe (TFC3). Excluding the effect of start-up
expenses of ABS-CBN Europe, GAEX would have increased
by 15% to Php2,991 million.
Production cost, the biggest cost item accounting for 34%
Personnel expenses, which accounts for 45% of total GAEX,
of total operating expenses, increased by 14% to Php3,501
increased by 24% to Php1,375 million from Php1,108
million from Php3,083 million in 2002. The increase in
million as the Company paid out performance-based
production cost was mainly due to a 17% increase in
incentives to its employees in line with improved operating
personnel expenses and talent fees as the Company
results.
further aired more station-produced programs in response
to increased competition in free-to-air TV. For example,
Non-cash operating expenses, consisting of depreciation
movie nights were reduced from thrice a week to twice a
and amortization of program rights, decreased by 3% to
week in 2003 as the weekend programming was
Php2,037 million in 2003 from Php2,103 million in 2002.
reformatted to air more station-produced programs in lieu
The decline in non-cash operating expenses was due to the
of Filipino movies. In addition, more special programs and
13% decrease in depreciation expense to Php1,218 million
events were produced and aired in 2003 as ABS-CBN
from Php1,394 million as a result of minimal capital
th
celebrated its 50 year in television.
expenditure in 2003.
Cost of sales and services increased by 23% to Php1,817
Amortization of program rights increased by 16% to
million from Php1,481 million in 2002. Nonetheless, the
Php819 million in 2003 from Php709 million in 2002. Parent
growth in cost of sales and services was lower than the
company program rights amortization, which accounted for
increase in net sales and services, reflecting the improved
59% of total amortization, increased by 16% to Php486
cost efficiencies of the Company’s major subsidiaries.
million as the Company aired newer and relatively more
expensive cartoons and foreign programming, particularly
Chinese and Korean dramas dubbed into Filipino such as
the highly successful Taiwanese soap opera Meteor
Garden.
8
%
Income from Operations
Assets
Income from operations increased by 42% to Php2,314
ABS-CBN ended 2003 with total consolidated assets of
million in 2003 from Php1,633 million in 2002. With net
Php22,203 million, an increase of 2% or Php465 million
revenues growing faster at 17% compared to operating
from 2002. Cash and cash equivalents amounted to
expenses growing at 12%, operating margins improved to
Php1,580 million due to the improvement in operations
18% in 2003 from 15% a year ago.
and management of working capital.
Other Income (Expenses)
Total receivables–net increased by 11% to Php3,788
million which translated to an average days sales
Other expenses, net of other income, decreased by 16% to
outstanding (DSO) of 90 days, an improvement from the 99
Php642 million from Php763 million due to lower interest
days DSO level in 2002. Similarly, consolidated trade
expense and lower losses from equity in investee
receivables increased by 6% to Php3,555 million resulting
companies.
in a reduction of average trade DSO to 86 days from 94
days in 2002. Parent trade receivables, which grew by 4%
Interest charges (net of interest income), decreased by 12%
to Php2,155 million, had an average DSO of 76 days,
to Php586 million from Php669 million the previous year
improving by 13 days from the reported DSO level of 89
due to lower interest rates in 2003 compared to 2002. The
days in the prior year.
decline in losses from equity in investee companies was
due to an improvement in Sky Vision’s financial results of
To account for the maturities within the next 12 months,
which the Company owns 10.2%.
current portion of long-term debt increased to Php2,116
million from Php484 million. Consequently, the movement
Net Income and EBITDA
from long-term debt to current portion resulted to a
reduction in long-term debt to Php3,454 million from
Net income before discontinuing operations amounted to
Php5,393 million. Net interest bearing debt in 2003 was
Php1,011 million, which was 131% higher than the Php438
down to Php4,210 million translating to a net debt-to-
million in 2002. In 2003, losses from discontinued
equity of 32% from 46% in 2002.
operations amounting to Php2 million was due to the sale
of assets from the winding down of the various subsidiaries
Free Cash Flow
that were discontinued in the previous year.
Free cash flow, defined as cash from operating activities
Net income after discontinuing operations surged by more
less cash used in investing activities, increased by 40% or
than 500% to Php1,009 million from Php166 million in
Php592 million to Php2,074 million. The increase in free
2002.
cash flow was driven by the Company’s continuing efforts
to drive revenue growth, to optimize operating
Meanwhile, EBITDA, which reflects the Company’s cash
efficiencies, and to closely manage capital spending.
generating abilities, increased by 18% to Php4,295 million
in 2003 from Php3,642 million in 2002. Consequently,
Capital expenditure and program acquisition in 2003
EBITDA margin improved to 34% from 33%.
amounted to Php1,550 million, Php113 million lower than
2002 spending of Php1,663 million. For 2004, the
Company’s capital expenditure is estimated to be at the
same level as in 2003.
9
“we are abs-cbn.
we are the people
working for you.”
We can talk about the new programs. We can talk about the
ratings. We can talk about new acquisitions and breakthrough
technology. These are, after all, the typical ways that companies
claim their leadership, and yes, we certainly lead on those fronts.
But ABS-CBN believes that programs can be copied, technology
can be bought, and ratings are a volatile, day-to-day race that
hardly provide a consistent measure of success.
Our real strength is unique. Our real strength is our people. Their
imagination, which allows them to do what machines cannot.
Their dedication, which creates the quality work unmeasured by
any ratings game. Their loyalty, which competition (try as it may)
cannot buy for any price.
We can talk about what we’ve done, but the real story is in the
people who do it. Everyday. The writers who create the ideas, and
the sound engineers who bring it to life. The reporters who tell
the news, and the technical support who make the telling
possible. The case workers who bring hope to sick and abused
children, and the sales executive who makes sure that hope will
always be available.
We are ABS-CBN. We are the people working for you.
10
carlo ventura
It started with a list of elements: cell phone na naglowbat, switchblade, P1,000 bill na duguan, lalaking
hubad sa tuktok ng isang building.
From these elements we had to write a good story.
Good enough to capture the imagination of the best
creative minds in ABS-CBN. Good enough to get my
story noticed over the stories of 4,250 other
applicants to ABS-CBN’s Writers’ Workshop.
But as I scribbled the first telenovela plot I could
think of, I realized I wasn’t just writing any story.
I was writing mine.
During the panel interview, tinanong ako: “Bakit ka
nandito?” I said, I’m seeking my personal legend. I
had always wanted to be a writer. This writer’s
workshop was my big chance to do what I love and
become better at it. Dream ko talaga ‘to.
And ten days later, ABS-CBN handed me that dream.
Thirty-nine kami sa first batch, less than 1% of the
original number who applied. Ramdam namin yung
pressure, siyempre. Dala namin ang pangalan ng
workshop, ng mga mentors namin: si Sir Ricky Lee,
Sir Ben Cho, Sir Bong Ramos. They believed in us.
They wanted to give us that big break—letting us
use their personal library of books and films,
rejecting drafts because they thought we could do
better. Maganda ang suporta, solid ang samahan.
Talagang kapamilya.
Sabi nga sa graduation namin, kung ang artista may
Star Circle, kami yung Writer’s Circle. Now, I write for
ABS-CBN. They just finished taping one of my scripts
for Sarah, The Teen Princess.
But more than that, I’m writing my personal legend.
I’m doing what I love. And thanks to the workshop,
I’m doing it better.
t
he ABS-CBN Writers’ Workshop has one goal: to continually raise
the bar of ABS-CBN’s content by sharpening the creative skills of its people.
Through this hands-on mentorship program, the writers learn how to feed
their imagination and refine their ideas into the concrete outputs of a script.
They are constantly pushed to excel. The “curriculum” includes close scrutiny
of drafts for concept, tone and direction. Workshop graduates are then
absorbed by the Creative Development Group or specific shows and
subsidiaries.
11
mori rodriguez
When I was a new graduate, I had dreamt of
changing the world. I wanted to uplift the standards
of television… I wanted to make a difference.
Then, like many others, I learned that broadcasting is
also a business. I had to adjust my standards. But I
never really let go of the dream.
As part of the Television Creative Development
Group, the hope of uplifting the standards of
television is renewed. I work with brainstormers—a
team of 40 highly creative people— and together we
generate fresh concepts for the people and
departments who can make them come to life. Our
hope is to draw out ideas, the freshest, most
unexpected, and most compelling.
Through what we have come to call as Pitching Day,
that hope is extended to all ABS-CBN employees,
contractuals, and talents. On this day, anybody can
bring their ideas to management and share their
dream of changing television. Changing the world.
You’d be surprised. Some of the best ideas have
come from the most unexpected places—from our
Legal Department, and from IT! People get very
excited about it. Not because of fame or fortune; the
prize isn’t significant, they don’t retain copyright. But
they say, “I don’t care about the money, I just want
to share my ideas. I want to do something.” The
loyalty, the passion, the initiative is theirs.
We just give them a chance.
I am abs-cbn.
I work for you.
a
t any given time, the Creative Development Group employs 40
brainstormers, a diverse group that includes Palanca Award winners and fresh
graduates from all walks of life. Their job is to generate both concepts and
creative materials for ABS-CBN programs and subsidiaries. Sometimes the
brainstormers become permanent staff-members of the shows they helped to
conceptualize, depending on their desired career paths.
Pitching Day expands the “staff” of the Creative Development Group to the
thousands of employees who work for all the ABS-CBN subsidiaries. The process
is similar—ideas are shared, refined, then presented to management—and so
is the spirit of mentorship. Backroom panels point out factors like audience
profiles, little holes that need to be fleshed out, or help format the idea for
clarity and brevity.
12
tonton benitez
I’ve been with ABS-CBN for 17 years.
I was here in 1986, when the station re-opened after the EDSA
Revolution. We worked with salvaged broadcast equipment.
Luma. Sira-sira. But it didn’t matter. I was working with seasoned
veterans whose belief in ABS-CBN was so strong they left high
positions and took big cuts in pay just to help the Lopezes bring
ABS-CBN back to being number one. By working side by side
with them, I learned a lot about sound engineering, but I learned
even more about passion, dedication, and loyalty.
In 1994, when ABS-CBN first purchased its state-of-the-art
broadcast equipment. Kahon-kahon ng camera at iba pang
audio-video equipment ang dumating. Parang Pasko. Dito
nag-umpisa ang pagiging leader natin...sa teknolohiya, at sa tao.
The foreign engineers who showed us how to use the new
equipment, were amazed by the ingenuity and skill of our
engineers.
Now, in 2004, I am a manager. From engineering sound, I now
engineer careers. Today, our engineers find many opportunities
for advancement through an interactive web career site where
our competencies are written up and can be matched with
different growth opportunities within the company. It is our effort
to keep our people growing.
Sabi ko nga sa lahat ng applicants, ‘pag natanggap ka sa
ABS-CBN, hindi kayo magpapaltos. We have state-of-the-art
facilities, we have the exposure, we have the people. Noong nagboom sa Middle East pina-pirate ang mga taga-ABS-CBN. Sabi
nga ng British engineer na nag-iinterview sa isa sa ating
maintenance engineers, “To tell you the truth, you know more
than I do.” Nagulat siya sa pagka-advanced ng equipment at
lawak ng experience ng ABS-CBN engineers.
At ABS-CBN, it’s about passion, dedication, loyalty and
world-class people.
I am abs-cbn.
I work for you.
t
he Miss Universe Pageant held in Manila in 1994 marked the rebirth
of ABS-CBN’s technological leadership. Founder Geny Lopez saw the event as
a triple opportunity to gain prestige, increase the company’s advantage over
competition, and train the employees under the visiting foreign experts.
Since then, ABS-CBN boasts of the best equipment and studios in the country,
at par with those found in Japan, North America, and Europe—and a system
that trains its employees on all aspects of video and audio engineering. Unlike
other stations, ABS-CBN emphasizes in-house production, and rotates its staff
across the different program formats: sitcoms, news coverage, live shows,
taped shows. This makes them more experienced and well-rounded than their
foreign counterparts.
13
kylie manalo
My first day at ABS-CBN began with a warning: “You will not be
babied.”
The warning gave me an adrenalin rush. It was my first day at the
ABS-CBN Career Internship Program, I had just survived a strict
screening process where over 2,000 applicants vied for only 19
posts. It was incredible enough that I was one among those who
beat the odds, they must have seen something good in me. For
that privilege I was willing to take on anything. I felt the pressure,
but I loved the challenge. I wasn’t here to be babied. I was here to
learn.
Since I had asked to be assigned to Talk and Variety Shows, they
put me in the ASAPMania team, and then Star in a Million. Work
was hard, but fun. Our mentors made tutok and made sure we
knew what we had to do, but we were left to find a way how to
do it. Hands-on training talaga. A crash course not just on
production work, but composure, presence of mind, planning,
attention to detail.
Then came the big test: I was assigned a primetime segment for
the F2 concert coverage…and I had to prepare it sabay sa
trabaho ko sa variety show. Ibang klase ang pressure. But they
believed in me, and they believed in my training. For two weeks,
hindi ako natulog. And I did it! I finished the segment, and in the
process, I found myself.
Nalaman ko kung ano ang gusto ko, at kung ano ang kaya ko.
That’s a big gift, and everyday when I work, I just want to give
some of it back.
I am abs-cbn.
I work for you.
a
ABS-CBN attracts the best graduates, often by making the rounds of the top universities and inviting
the top 10 in each batch to join the company. The Career Internship Program aims to harness their
potential through a six-month hands-on training that rotates them through all the functions and aspects
of the entertainment business. The objective is for the participants to reach the competency level of
an associate producer by the end of the course.
For 2003, out of 2,000 plus students who applied for the program, only 19 were accepted. Weekly
learning goals comprised the curriculum which participants systematically go through. They were
assigned mentors, who supervised their tasks but still enforced the standards and expectations given
to regular employees. It’s a tough course.
14
katherine uba-bermudez
People have high expectations of ABS-CBN. Especially when you
work for the regional stations anywhere in the Philippines.
People look up to us; they give us special treatment. Sometimes
they think we have “glamour jobs”—just because we’re in
ABS-CBN.
But actually, there’s more guts than glamour. We work hard. We
have to make do with what we have. We have to go where the
work takes us, no matter how far from home that is. Precisely
because we’re in ABS-CBN.
I am one of the news chiefs of the company’s many regional
bureaus. I joined the company in 1995, starting out as a reporter
in the Cagayan de Oro station before making the rounds of
General Santos, Zamboanga, Cagayan de Oro, Cotabato, and
Cebu.
From where we are, we cover the news with minimal logistics
and manpower. When I was assigned to Cotabato, we had
breaking news every day—and just two cameramen and a
vehicle to cover it. But nobody said “that’s not my job” or “I don’t
want to do that.” Even as news chief, I also went on field. And
even if we were an-all female reporting team, we still covered
the war. Blood, death, violence didn’t faze us. We were there to
do our jobs.
It helps that we have a direct on-line connection to the Manila
office. Even as we are writing the news, they can already see
what we are doing. And even if we have been assigned to
far-flung places, we get to participate in discussions with top
management through the regular Chat with the Chairman, which
is beamed to us live from the ABS-CBN headquarters in Manila.
Through all these, we live up to the ABS-CBN name. If people
have high expectations of us, it’s because we have high
expectations of ourselves.
I am abs-cbn.
I work for you.
t
he ABS-CBN Internal Communication program connects all the regional stations
to the ABS-CBN Manila headquarters through tools like e-mail, teleconferencing, and a
centralized electronic news room. Within seconds of being written, a story is stored into
the server—readily accessible to anyone who needs that information. This digital filing
system also allows anyone to quickly “grab” facts and figures to flesh out a story.
Communication isn’t just crucial to good reporting; it also helps maintain the employee
morale and cooperation that is the spirit of kapamilya. The Chat with the Chairman, a
regular teleconferencing date with management, allows employees to air concerns and
questions, and stay up-to-date with decisions that affect both the regional desks and the
company as a whole.
15
audren joe poncio
There are millions of Filipinos overseas. Everyday, TFC (The
Filipino Channel) brings them home.
Our people arrange a phone patch for the construction worker
who hasn’t spoken to his family in ten years. Our specially
created OFW shows like Sing That Song bring a smile to a
homesick mother who dedicates an OPM to the children she left
behind. Our programs teach teeners how to say po and opo and
other Filipino values even if they were born and raised on foreign
soil.
Yes, part of my job is the paperwork. I make the program grids, I
double check that each show meets the regulations of the
Independent Television Commission (ITC). And following these
rules can be so tedious. Just to cite an example, we need to guard
against epilepsy and to do so, one has to count the flashes of light
per second. Needless to say, we have to protect the children’s
welfare. That’s why we have a block suitable for them. We must
not only think of our programming and our audiences, but we
must also comply with all the international standards.
But the real essence of my job is in the emails I get from our
viewers. One teenager said, “Laking TFC ako.” We build Filipino
communities with Filipino programming. We are there where and
when they need to be at home.
I am abs-cbn.
I work for you.
a
ABS-CBN is the first company to truly cater to the needs of Filipino televiewers
beyond Philippine shores. Introducing TFC to North America and Asia-Pacific
in 1994, then expanding its service to the Middle East in 1997 and setting foot
finally in Europe on December 1, 2003, wholly-owned subsidiary ABS-CBN Global
lives up to its commitment of being “in the service of the Filipino worldwide.”
Celebrating TFC’s 10th year anniversary in 2004, ABS-CBN Global has come a
long way from its 8-hour tape service of a few programs to some cabled homes
in the US, to a 24-hour direct-to-home channel beamed via satellite, to a 6channel bundle made up of not just TV channels but also radio stations, to
mounting events that bring celebrities closer to overseas fans, and to offering
not just entertainment but telecommunication, retail, remittance, cargo
forwarding and other services. All in fulfillment of a dream “to see the day
when wherever Filipinos are, ABS-CBN is there” (Eugenio Lopez Jr., 1991
Management Conference).
16
mabel del mundo
I sell advertising spots. Everyday, I make client calls: visit ad
agencies, inform media buyers of our ratings and format
changes, present packages, arrange special discounts and deals
for bulk buys.
But I buy hope.
By selling the ABS-CBN Foundation TV programs, we help keep
them running. Our sales help support the caseworker as he
breaks a family cycle of abuse as well as the foresters who
protect and sustain the La Mesa Watershed. At the end of the
day, I know I’m doing my part—not just for the company, but the
public who depend on us. I help make a difference.
And I’m proud to be part of ABS-CBN’s growth. We’re number
one, and the sales team helps create the new developments
that will keep us number one. An advertising spot may seem like
a very small contribution, but it is a contribution nonetheless.
I’m happy to be able to help, whatever way I can.
The advertisers support ABS-CBN, because they believe in our
cause and they believe in the quality of our programs. People
say sales is just about profit.
Sometimes, it’s about service.
I am abs-cbn.
I work for you.
a
percentage of advertising revenue from ABS-CBN Foundation’s shows—
Sineskwela, MathTinik, Epol/Apple, Detek Kids, Bear In the Big Blue House,
Incredible Stories and Eddie McDowd—help support the operations of E-media,
Bantay Bata, Bantay Kalikasan, AFI Volunteers and other community-building
efforts.
One of ABS-CBN Foundation’s biggest projects is to transform the 25-hectares
land donated by Meralco, now the Children’s Village into a training center, the
equivalent of the Asian Institute of Management for child care. It currently
provides support services to children who have no homes to return to. But
long-term plans include seminars and workshops for parents, educators, social
workers, and for all sectors of society. “We say that it takes a village to raise a
child,” says AFI Managing Director Gina Lopez. “Donors and supporters have
joined us and together we have built that village. With friends like these I have
no doubt we can someday have a better world for our children.”
17
pal marquez
The history of the ABS-CBN news team is actually the history
of Philippine news reporting. We have set each and every
milestone in news coverage. I am proud to have been part of
the coverage of many unfolding historical events—from the
coup attempts against the Cory government, the Mount
Pinatubo eruption, the Barcelona Olympics to the creation of
the first all news channel (ANC). Today, we have the largest
nationwide and internal network of news bureaus and the
most comprehensive variety of news formats.
It’s impossible to look at what ABS-CBN has done, and not be
inspired to add to that legacy. I want to help bring the news—
not by reporting it on camera, but by helping those who do.
As Director of Media Management and Archives, I have that
chance. Our News Automation System (NAS) allows different
news teams to instantly and easily share facts, soundbytes
and video clips they have gathered. That’s literally hundreds
of people working together for one goal: to bring news when
it happens, as it happens, in the best possible way.
NAS is a technological breakthrough, yes. But at its root, it’s
really the same spirit that has held
ABS-CBN together since 1986: teamwork. People who
breathe heart and soul into their work—whether it’s a
reporter in Iraq, or someone like me…manning the machines
behind the scenes.
I am abs-cbn.
I work for you.
t
he News Automation System (NAS) is a digitized archive of news
reports—from raw facts to scripts to even video clips—gathered by the ABS-CBN
news team. The moment the reporters create a story, they upload it into the
system, where it can be accessed by each of the different ABS-CBN News
platforms, from TV Patrol to ANC, from the regional news stations to the
international broadcast of The Filipino Channel (TFC).
NAS plays an important role in ABS-CBN’s ability to bring and deliver news
quickly and efficiently—especially as we venture into live international reporting.
Last year, we were the only Filipino team that covered the Iraq War, along with
news greats Reuters, CNN, BBC and CBS. This led to a grandslam of local awards
for Best Newscast: Star Awards, CMMA, KBP Golden Dove and Asian TV Awards.
18
beverly vergel
I manage the Artist Training at the ABS-CBN Talent Center.
Everyday, I help create stars. Claudine Barretto, Piolo Pascual,
Jericho Rosales, John Lloyd Cruz, Bea Alonzo, Heart
Evangelista—big names who started out only with big
dreams.
Talent Center is where those dreams begin.
I help young artists hone their talents and skills—acting,
dance, voice, personality development. Even the “big stars”
who appear on television join specialized workshops to
prepare them for specific projects. We believe in our craft,
and more importantly, in our commitment to the fans…and
we work hard to give them our best.
I don’t work alone. My staff, and the industry practitioners
who share their wisdom on a regular basis, help mentor
everyone in the Talent Center. It is a team effort, a
cooperative of learning. We believe in each other. Our
commitment to our fans extends to our commitment to our
stars.
In the last ten years, we have worked with over 200 contract
artists of Talent Center and over 5,000 workshop participants.
This year, we bring those efforts to the screen, working with
the participants in the latest top-rating reality-based TV show,
Star Circle Quest. They are the next generation of stars, and
yet the lessons they learn are as classic and time-tested as
ABS-CBN itself.
We teach them dedication. We teach them values. We teach
them professionalism. We teach them the willingness to
continuously push themselves—because that is what the
public deserves, and that is what their dream deserves.
I am abs-cbn.
I work for you.
t
he ABS-CBN Talent Center is the country’s premiere star-maker. It trains
actors and actresses, singers, stage performers and commercial models in the
different facets of performing arts, refining their in-born skills and preparing them
for the rigors and demands of show business.
Although they may enjoy their celebrity status, the Talent Center’s wards are
expected to keep up their academic development through the Distance Learning
Center School. They are taught to balance their entertainment career by sweating
it out in school projects, assignments and class activities.
It is the aim of the ABS-CBN Talent Center to develop showbiz gems out of raw
talents and produce stars who possess not only top-notch skills but also the
substance and character of a true entertainment professional.
19
management's responsibility for
financial statements
The management of ABS-CBN Broadcasting Corporation is responsible for all
information and representations contained in the parent company and
consolidated balance sheets as of December 31, 2003 and 2002 and the
related parent company and consolidated statements of income and retained
earnings and cash flows for each of the three years in the period ended
December 31, 2003, 2002, and 2001. The financial statements have been
prepared in conformity with generally accepted accounting principles in the
Philippines and reflect amounts that are based on the best estimates and
informed judgment of management with an appropriate consideration to
materiality.
In this regard, management maintains a system of accounting and reporting
which provides for the necessary internal controls to ensure that transactions
are properly authorized and recorded, assets are safeguarded against
unauthorized use or disposition and liabilities are recognized.
The Board of Directors reviews the financial statements before such
statements are approved and submitted to the stockholders of the Company.
Sycip, Gorres, Velayo & Co., the independent auditors appointed by the
stockholders, has examined the parent and consolidated financial statements
of the Company in accordance with generally accepted auditing standards in
the Philippines and has expressed its opinion on the fairness of presentation
upon completion of such examination, in its report to stockholders and the
Board of Directors.
Chairman and Chief Executive Officer
RANDOLPH T. ESTRELLADO
Vice President and Chief Financial Officer
20
report of
independent auditors
The Stockholders and the Board of Directors
ABS-CBN Broadcasting Corporation
We have audited the accompanying parent company balance sheets of
ABS-CBN Broadcasting Corporation as of December 31, 2003 and 2002 and
the related parent company statements of income, changes in stockholders’
equity and cash flows for the years then ended and the consolidated balance
sheets of ABS-CBN Broadcasting Corporation and Subsidiaries as of
December 31, 2003 and 2002, and the related consolidated statements of
income, changes in stockholders’ equity and cash flows for each of the three
years in the period ended December 31, 2003. These financial statements are
the responsibility of the Company’s management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the Philippines. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of ABS-CBN Broadcasting Corporation
as of December 31, 2003 and 2002 and the results of its operations and its
cash flows for the years then ended, and the financial position of ABS-CBN
Broadcasting Corporation and Subsidiaries as of December 31, 2003 and 2002,
and the results of their operations and their cash flows for each of the three
years in the period ended December 31, 2003 in conformity with accounting
principles generally accepted in the Philippines.
Makati City
March 10, 2004
21
ABS-CBN BROADCASTING CORPORATION AND SUBSIDIARIES
BALANCE SHEETS
(Amounts in Thousands)
Parent Company
Consolidated
December 31
2003
2002
2003
2002
$803,202
2,336,666
566,992
237,427
3,944,287
$465,441
2,190,725
546,889
229,303
3,432,358
$1,580,355
3,787,808
880,975
562,678
6,811,816
$715,588
3,425,668
751,055
414,825
5,307,136
150,894
3,417,545
160,444
3,257,116
273,303
342,111
264,799
612,901
10,513,881
863,633
466
2,107,264
17,053,683
$20,997,970
10,887,556
1,023,876
2,719
2,198,972
17,530,683
$20,963,041
10,843,512
936,212
17,118
2,978,649
15,390,905
$22,202,721
11,266,453
1,152,624
39,512
3,094,372
16,430,661
$21,737,797
$425,587
$220,577
$425,587
1,738,996
192,972
2,442,234
124,357
2,440,447
205,663
484,438
87,203
2,929,196
2,115,971
256,183
5,159,322
484,438
141,462
3,697,597
5,393,294
291,665
239,803
17,935
–
5,942,697
–
3,453,903
75,473
224,870
13,370
16,652
3,784,268
151,049
5,393,294
113,073
239,803
47,461
36,793
5,830,424
118,628
ASSETS
Current Assets
Cash and cash equivalents (Note 5)
Receivables - net (Notes 6, 8 and 13)
Current portion of program rights (Note 10)
Other current assets - net (Notes 7 and 22)
Total Current Assets
Noncurrent Assets
Due from related parties (Notes 8 and 13)
Investments and advances (Notes 8, 10 and 13)
Property and equipment at cost - net
(Notes 9, 13, 14 and 27)
Program rights - net of current portion (Note 10)
Assets of discontinuing operations (Note 4)
Other noncurrent assets - net (Notes 8, 10, 13, 14 and 22)
Total Noncurrent Assets
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Bank loans (Notes 11 and 14)
$220,577
Accounts payable and other current liabilities
(Notes 12, 13 and 23)
1,419,299
Income tax payable
101,634
Current portion of:
Long-term debt (Notes 9, 10, 11 and 14)
2,115,971
Obligations for program rights (Note 10)
149,855
Total Current Liabilities
4,007,336
Noncurrent Liabilities
Long-term debt - net of current portion (Notes 9, 10, 11 and 14) 3,453,903
Due to related parties (Note 13)
201,303
Deferred tax liabilities - net (Note 22)
224,569
Obligations for program rights - net of current portion (Note 10)
2,777
Liabilities of discontinuing operations (Note 4)
–
Total Noncurrent Liabilities
3,882,552
Minority Interest
–
Stockholders’ Equity (Note 15)
Capital stock
779,583
Capital paid in excess of par value
706,047
Equity adjustments from translation of subsidiaries (Note 8)
130,251
Retained earnings
11,692,201
Philippine deposit receipts convertible to common shares
(200,000)
Total Stockholders’ Equity
13,108,082
$20,997,970
See accompanying Notes to Financial Statements.
22
779,583
706,047
109,201
10,696,317
(200,000)
12,091,148
$20,963,041
779,583
706,047
130,251
11,692,201
(200,000)
13,108,082
$22,202,721
779,583
706,047
109,201
10,696,317
(200,000)
12,091,148
$21,737,797
STATEMENTS OF INCOME
(Amounts in Thousands, Except Per Share Amounts)
Parent Company
Consolidated
Years Ended December 31
AIRTIME AND OTHER BROADCASTING
RELATED REVENUES (Note 13)
Less agency commission, marketing expenses
and co-producers’ share (Note 16)
NET SALES AND SERVICES (Note 13)
COST AND OPERATING EXPENSES
Production costs (Notes 13, 17, 23 and 24)
(Notes 13, 18, 23 and 24)
(Notes 13, 19, 23 and 24)
Depreciation (Note 9)
Amortization of program rights (Note 10)
INCOME FROM OPERATIONS
OTHER INCOME (EXPENSES)
Interest and other financial charges - net
(Notes 11, 14, and 20)
Equity in net losses of investees (Note 8)
Miscellaneous - net (Notes 13 and 21)
2003
2002
2003
2002
2001
$10,092,171
$9,003,346
$11,064,409
$9,914,146
$9,922,504
1,861,144
8,231,027
1,710,685
7,292,661
1,980,743
9,083,666
1,830,221
8,083,925
1,636,559
8,285,945
–
8,231,027
–
7,292,661
3,631,692
12,715,358
2,824,930
10,908,855
2,055,743
10,341,688
3,361,497
2,959,727
3,500,521
3,083,396
2,664,260
–
–
1,816,706
1,481,371
1,100,598
1,407,650
1,048,481
486,148
6,303,776
1,151,705
1,100,650
420,440
5,632,522
3,046,473
1,218,101
819,230
10,401,031
2,608,405
1,393,756
709,497
9,276,425
2,324,338
945,710
511,228
7,546,134
1,927,251
1,660,139
2,314,327
1,632,430
2,795,554
(668,989)
(139,028)
45,105
(762,912)
(629,588)
(39,888)
54,505
(614,971)
(596,547)
(219,623)
471,763
(344,407)
(673,335)
(416,843)
266,940
(823,238)
(585,710)
(115,367)
59,023
(642,054)
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME TAX
1,582,844
836,901
1,672,273
869,518
2,180,583
PROVISION FOR INCOME TAX (Note 22)
571,417
398,807
660,846
431,424
794,031
1,011,427
438,094
1,011,427
438,094
1,386,552
(272,314)
(8,219)
INCOME FROM CONTINUING
OPERATIONS AFTER INCOME TAX
LOSS FROM DISCONTINUING
OPERATIONS AFTER INCOME TAX
(Notes 4 and 8)
NET INCOME (Note 25)
EARNINGS PER SHARE (EPS) (Note 25)
Basic EPS
Income from continuing operations after
income tax
Loss from discontinuing operations after
income tax
Diluted EPS
(2,253)
(272,314)
(2,253)
$1,009,174
$165,780
$1,009,174
$165,780
$1,378,333
$1.314
$0.569
$1.314
$0.569
$1.802
(.003)
$1.311
(0.354)
$0.215
(.003)
$1.311
(0.354)
$0.215
(0.011)
$1.791
$1.311
$0.215
$1.311
$0.215
$1.791
23
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Amounts in Thousands, Except Number of Shares and Per Share Amounts)
2003
2002
2001
CAPITAL STOCK - $1 par value (Note 15)
Authorized - 1,500,000,000 shares
Issued and outstanding - 779,583,312 shares
$779,583
$779,583
$779,583
CAPITAL PAID IN EXCESS OF PAR VALUE
706,047
706,047
706,047
EQUITY ADJUSTMENTS FROM TRANSLATION
OF SUBSIDIARIES (Note 8)
Balance at beginning of year
Translation adjustments during the year
Balance at end of year
109,201
21,050
130,251
98,150
11,051
109,201
(73,293)
171,443
98,150
8,300,000
–
8,300,000
8,300,000
–
8,300,000
6,000,000
2,300,000
8,300,000
2,396,317
1,009,174
2,230,537
165,780
3,633,889
1,378,333
(13,290)
–
3,392,201
11,692,201
–
–
2,396,317
10,696,317
(481,685)
(2,300,000)
2,230,537
10,530,537
(200,000)
(200,000)
(200,000)
$12,091,148
$11,914,317
RETAINED EARNINGS
Appropriated:
Appropriation for expansion projects (Note 15)
Unappropriated:
Net income
Cash and scrip dividends - $0.017 per share in 2003,
and $0.60 per share in 2001 (Note 28)
Appropriation for expansion projects (Note 15)
PHILIPPINE DEPOSIT RECEIPTS CONVERTIBLE
TO COMMON SHARES (Note 15)
$13,108,082
24
STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
Parent Company
Consolidated
2003
CASH FLOWS FROM OPERATING ACTIVITIES
Income from continuing operations before
income tax
$1,582,844
Adjustments for:
Depreciation
1,048,481
Interest expense and other financial charges
636,415
Amortization of:
Program rights
486,148
Deferred charges
23,368
Production and distribution business
–
Equity in net losses of investees
219,623
Provisions for:
Doubtful accounts
73,508
Retirement expense
82,675
Decline in values of marketable securities
and club shares
48,286
Inventory obsolescence
–
Gain on sale of property and equipment
(63,572)
Interest income
(39,868)
Unrealized foreign exchange (gains) losses
(5,168)
Dividend income
(79)
Minority interest
–
Loss on sale of employee stock option plan (ESOP)
–
Operating income before working capital
changes
4,092,661
Decrease (increase) in:
Receivables
(217,959)
Program rights
(346,008)
Other current assets
(4,217)
Increase (decrease) in:
Accounts payable and other current
liabilities
(408,002)
Obligations for program rights
47,494
Cash generated from operations
3,163,969
Income tax paid
(681,896)
Net cash provided by operating activities of
continuing operations
2,482,073
Net cash provided by (used in) operating
activities of discontinuing operations
–
Net cash provided by operating activities
2,482,073
2002
2003
2002
2001
$836,901
$1,672,273
$869,518
$2,180,583
1,100,650
687,567
1,218,101
637,780
1,393,756
692,113
945,710
652,976
420,440
5,775
–
416,843
819,230
23,368
42,588
115,367
709,497
5,775
49,392
139,028
511,228
–
28,748
39,888
37,620
55,675
179,430
87,566
153,477
58,975
139,430
19,700
–
–
–
(14,232)
10,813
(280)
–
–
48,286
4,753
(47,656)
(52,070)
(5,168)
(94)
27,393
–
–
2,661
–
(23,124)
10,813
(292)
(3,167)
–
–
950
–
(23,388)
9,477
(7,289)
3,100
47,489
4,058,422
4,548,602
3,557,772
4,771,147
245,801
(351,520)
(63,963)
(523,423)
(732,738)
(154,642)
(358,422)
(765,907)
(74,676)
(800,208)
(503,194)
240,166
171,056
(37,540)
3,521,606
(625,038)
(92,309)
80,630
3,348,665
(754,037)
575,960
(84,610)
3,350,767
(645,247)
(232,736)
191,413
3,444,043
(881,875)
2,896,568
2,594,628
2,705,520
2,562,168
–
2,896,568
2,520
2,597,148
(104,589)
2,600,931
(165,597)
2,396,571
(Forward)
25
Parent Company
Consolidated
2003
2002
2003
2002
2001
($896,930)
($2,405,755)
228,043
(234,613)
(277,944)
23,124
292
–
–
(51,166)
350,797
(571,443)
23,388
7,289
–
111,877
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property and equipment
Decrease (increase) in:
Amounts due from related parties
Investments and advances
Other non-current assets
Interest received
Dividends received
Proceeds from sale of property and equipment
Proceeds from sale of ESOP
Net cash used in investing activities of
Net cash provided by investing activities of
discontinuing operations
Net cash used in investing activities
CASH FLOWS FROM FINANCING
ACTIVITIES
Interest and other financial charges paid
Payments of:
Long-term debt
Bank loans
Cash and scrip dividends
Proceeds from bank loans
Increase (decrease) in amounts due to related
parties
Net cash used in financing activities of
Net cash provided by (used in) financing
activities of discontinuing operations
Net cash used in financing activities
(Forward)
26
($697,791)
($702,760)
($817,670)
9,550
(353,721)
28,941
38,378
79
77,137
–
8,774
(683,905)
(120,102)
14,232
280
–
–
(897,427)
(1,483,481)
(527,088)
(1,158,028)
(2,535,013)
–
(897,427)
–
(1,483,481)
4,457
(522,631)
38,693
(1,119,335)
48,743
(2,486,270)
(636,105)
(704,178)
(637,470)
(708,723)
(779,134)
(506,898)
(14,102)
(13,290)
–
(560,007)
(388,455)
–
376,057
(506,898)
(14,102)
(13,290)
–
(560,007)
(388,455)
–
376,057
(320,000)
(1,579,545)
(465,422)
3,134,437
(90,362)
202,422
(46,982)
145,057
(184,998)
(1,260,757)
(1,074,161)
(1,218,742)
(1,136,071)
(194,662)
–
(1,260,757)
–
(1,074,161)
(21,095)
(1,239,837)
64,725
(1,071,346)
140,388
(54,274)
164
151,284
10,923
50,580
94
77,537
–
Parent Company
Consolidated
EFFECT OF TRANSLATION
ADJUSTMENTS TO CASH
AND CASH EQUIVALENTS
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS
Net increase (decrease) in cash and cash
equivalents of continuing operations
Net increase (decrease) in cash of discontinuing
operations
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
Cash and cash equivalents at beginning of year
of continuing operations
Cash at beginning of year of discontinuing
operations
CASH AND CASH EQUIVALENTS
AT END OF YEAR
Cash and cash equivalents at end of year
of continuing operations
Cash at end of year of discontinuing operations
2003
2002
2003
2002
2001
$13,872
$–
$15,969
($314)
$4,059
337,761
338,926
864,767
411,107
(163,448)
–
337,761
–
338,926
(14,118)
850,649
(1,171)
409,936
23,534
(139,914)
465,441
126,515
715,588
304,481
467,929
–
465,441
–
126,515
27,309
742,897
28,480
332,961
4,946
472,875
803,202
–
465,441
–
1,580,355
13,191
715,588
27,309
304,481
28,480
$803,202
$465,441
$1,593,546
$742,897
$332,961
27
NOTES TO FINANCIAL STATEMENTS
(Amounts in Thousands Unless Otherwise Specified)
1.
Corporate Information
ABS-CBN Broadcasting Corporation (“ABS-CBN” or “Parent Company”) is incorporated in the
Philippines. The Parent Company’s core business is television and radio broadcasting. Its
subsidiaries and associates are involved in the following related businesses: video/audio post
production, movie production, audio recording and distribution, film distribution, cable and directto-home television distribution and telecommunication services overseas. Other activities of the
subsidiaries include merchandising and licensing, internet services and publishing. As fully discussed
in Note 4, the Parent Company has discontinued operations of several subsidiaries in 2002.
The number of employees and talents of the Parent Company was 4,018 and 3,734 as of
December 31, 2003 and 2002, respectively. The number of employees and talents of the Parent
Company and its subsidiaries (collectively referred to as the “Company”) was 6,305, 6,059 and
5,804 as of December 31, 2003, 2002 and 2001, respectively.
The Parent Company is 57% owned by Lopez, Inc. (Lopez) (see Note 15).
The registered office address of the Company is Mother Ignacia Street corner Sgt. Esguerra Avenue,
Quezon City.
The accompanying financial statements for the year ended December 31, 2003 and 2002 were
authorized for issue by the Board of Directors (BOD) on March 10, 2004.
2.
Summary of Significant Accounting Policies
The principal accounting policies adopted in preparing the accompanying financial statements are
as follows:
Basis of Preparation
The accompanying financial statements are prepared in accordance with generally accepted
accounting principles in the Philippines under the historical cost convention.
Changes in Accounting Policies
On January 1, 2003, the Company adopted the following Statements of Financial Accounting
Standards (SFAS)/International Accounting Standards (IAS):
•
28
SFAS 22/IAS 22, “Business Combinations,” requires that an acquisition where an acquirer
can be identified should be accounted for by the purchase method. Any goodwill arising
from the acquisition should be amortized generally over 20 years. Adoption of this standard
has not resulted in any adjustment as goodwill arising from acquisition is being amortized
over 10 to 20 years.
•
SFAS 37/IAS 37, “Provisions, Contingent Liabilities and Contingent Assets,” provides the criteria
for the recognition and bases for measurement of provisions, contingent liabilities and
contingent assets. Additional disclosures required by the standard were included in the
financial statements.
•
SFAS 10/IAS 10, “Events After the Balance Sheet Date,” prescribes the accounting and
disclosures related to adjusting and non-adjusting subsequent events. Additional disclosures
required by the standard were included in the financial statements, principally the date of
authorization for release of the financial statements.
New Accounting Standards Effective Subsequent to 2003
The Accounting Standards Council (ASC) has approved the following accounting standards which
will be effective subsequent to 2003:
•
SFAS 21/IAS 21, “Changes in Foreign Exchange Rates,” which provides restrictive conditions
for the capitalization of foreign exchange losses. The Company will adopt SFAS 21/IAS 21 in
2005. This standard will not have an impact on the Company as the Company does not
capitalize foreign exchange losses.
•
SFAS 12/IAS 12, “Income Taxes,” prescribes the accounting treatment for current and deferred
income taxes. The standard requires the use of a balance sheet liability method in accounting
for deferred income taxes. It requires the recognition of a deferred tax liability and, subject
to certain conditions, deferred tax asset for all temporary differences with certain exceptions.
The standard provides for the recognition of a deferred tax asset when it is probable that
taxable income will be available against which the deferred tax asset can be used. It also
provides for the recognition of a deferred tax liability with respect to asset revaluations. The
Company will adopt the SFAS 12/IAS 12 in 2004. The Company has not yet determined the
financial impact of the adoption of the standard.
•
SFAS 17/IAS 17, “Leases,” prescribes the accounting policies and disclosures to apply to
finance and operating leases. Finance leases are those that transfer substantially all risks
and rewards of ownership to the lessee.
A lessee is required to capitalize finance leases as assets and recognize the related liabilities
at the lower of the fair value of the assets or the present value of the minimum lease
payments. The lessee should also depreciate the leased asset. On the other hand, lessees
should expense operating lease payments.
A lessor is required to record finance leases as receivables at an amount equal to the net
investment in the lease. Lease income should be recognized on the basis of a constant
periodic rate of return on the lessor’s outstanding net investment. On the other hand, a
lessor should present as an asset and depreciate accordingly assets that are subject to
operating leases.
Due to the significant number of leases that the Company is a party to and the assessment
that need to be made as to whether these would qualify as finance leases, the Company has
not yet determined the financial statement impact of the adoption of SFAS 17/IAS 17 in
2004.
29
Basis of Consolidation and Investments
The consolidated financial statements of the Company include the Parent Company and its
subsidiaries as of December 31 of each year (see Note 8).
Subsidiaries are consolidated from the date on which control is transferred to the Company and
cease to be consolidated from the date on which control is transferred out of the Company.
The purchase method of accounting is used for acquired businesses. Companies acquired or
disposed of during the year are included in the consolidated financial statements from the date of
acquisition to the date of disposal.
Consolidated financial statements are prepared using uniform accounting policies for like
transactions and other events in similar circumstances. Intercompany balances and transactions,
including intercompany profits and unrealized profits and losses are eliminated.
The net income attributable to minority shareholders’ interests are shown as part of “Miscellaneous
- net” account in the statements of income.
The Company’s investments in its associates are accounted for under the equity method of
accounting. An associate is an entity in which the Company has significant influence and which is
not a subsidiary. The investments in associates are carried in the balance sheets at cost plus postacquisition changes in the Company’s share in the net assets of the associates, less any impairment
in value. The statements of income reflect the Company’s share in the results of operations of the
associates. Unrealized gains arising from transactions with its associates are eliminated to the
extent of the Company’s interest in the associates, against the investments in the associates.
Unrealized losses are eliminated similarly but only to the extent that there is no evidence of
impairment of the asset transferred. The Company’s investments in its subsidiaries and associates
include goodwill (net of accumulated amortization) on acquisition, which is treated in accordance
with the accounting policy for goodwill stated below.
In the parent company financial statements, investments in subsidiaries and associates are
accounted for under the equity method of accounting.
Other Investments
Other investments held on a long-term basis are valued at cost less any permanent decline in
value and are included in the “Other Noncurrent Assets” account balance sheets.
30
Foreign Currency Transactions and Translation
Transactions in foreign currencies are recorded using the exchange rate at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are restated using
the closing exchange rate at balance sheet date. All differences are taken to the statements of
income.
Financial statements of foreign subsidiaries that are not integral to the operations of the Parent
Company are translated at year-end exchange rates with respect to the balance sheet, and at the
average exchange rates for the year with respect to the statement of income. Resulting translation
differences are included in equity. Upon disposal of a foreign entity, accumulated exchange
differences are recognized in the statements of income as a component of the gain or loss on
disposal.
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid investments
that are readily convertible to known amounts of cash with original maturities of three months or
less and that are subject to an insignificant risk of change in value.
Receivables
Trade receivables are recognized and carried at original invoice amount less an allowance for any
uncollectible amounts. Other receivables are stated at face value, after allowance for doubtful
accounts. An estimate for doubtful accounts is made when collection of the full amount is no
longer probable.
The Company maintains an allowance for doubtful accounts at a level considered adequate to
provide potentially uncollectible receivables. The level of allowance is evaluated by management
based on collection experience and other factors that may affect the collectibility. A review of the
age and status of receivables, designed to identify potential charges to the allowance, is performed
on a continuous basis. The allowance is established by charges to income in the form of provision
for doubtful accounts.
Program Rights
Rights to programs available for broadcast are initially capitalized at the amounts of total license
fees under the covering license agreements and are charged to income on the basis of program
usage. To the extent that a given future expected benefit period is shorter than the initial Company
estimates, the Company writes off the purchase price or the license fee sooner than anticipated.
The Company classifies its program rights into current and non-current amounts based on estimated
year of usage.
Inventories
Inventories included under “Other current assets - net” account in the balance sheets are valued
at the lower of cost or net realizable value, after provision for obsolescence. Net realizable value
of inventories that are for sale is the selling price in the ordinary course of business, less the cost
of marketing and distribution. Net realizable value of inventories not held for sale is the current
replacement cost. Cost is determined on the first-in, first-out method. Unrealizable inventories
are written off.
31
Property and Equipment
Property and equipment are carried at cost (including capitalized interest), less accumulated
depreciation and any impairment in value.
The initial cost of property and equipment comprises its purchase price, including import duties,
taxes and any directly attributable costs of bringing the asset to its working condition and location
for its intended use. Expenditures incurred after the property and equipment have been put into
operation, such as repairs and maintenance, are normally charged to income as incurred. In
situations where it can be clearly demonstrated that the expenditures have resulted in an increase
in the future economic benefits expected to be obtained from the use of an item of property and
equipment beyond its originally assessed standard of performance, the expenditures are capitalized
as an additional cost of property and equipment.
Depreciation is computed on a straight-line basis over the following estimated useful lives:
Land improvements
Building and improvements
Television, radio, movie and auxiliary equipment
Other equipment
10 years
20 to 40 years
10 to 15 years
3 to 10 years
The useful life and depreciation method are reviewed periodically to ensure that the method and
period of depreciation are consistent with the expected pattern of economic benefits from items
of property and equipment.
When assets are retired or otherwise disposed of, the cost and the related accumulated depreciation
and impairment loss are removed from the accounts and any resulting gain or loss is credited or
charged to current operations.
Construction in progress represents equipment under installation and building under construction
and is stated at cost which includes cost of construction and other direct costs. Construction in
progress is not depreciated until such time that the relevant assets are completed and put into
operational use.
Impairment of Assets
Starting January 1, 2002, an assessment is made at each balance sheet date whenever there is
any indication of impairment of any asset. If any such indication exists, the asset’s recoverable
amount is estimated. An asset’s recoverable amount is calculated as the higher of the asset’s
value in use or its net selling price. An impairment loss is recognized only if the carrying amount of
an asset exceeds its recoverable amount. An impairment loss is charged to operations in the
period in which it arises.
A previously recognized impairment loss is reversed only if there has been a change in the estimates
used to determine the recoverable amount of an asset, however, not to an amount higher than the
carrying amount that would have been determined (net of any depreciation), had no impairment
loss been recognized for the asset in prior years.
A reversal of an impairment loss is credited to current operations.
32
Deferred Charges
Costs such as participation fees, legal fees and other direct costs incurred in connection with
securing a long-term debt are deferred and amortized on a straight-line basis over the term of the
loan. These are presented as part of “Other noncurrent assets” account in the balance sheets.
Goodwill
Goodwill, which is stated at cost less accumulated amortization and any impairment in value,
represents the excess of the cost of the acquisition over the Company’s share in the fair value of
identifiable net assets of a subsidiary and associate at the date of acquisition. The investments in
subsidiaries and associates in the parent company financial statements and the investments in
associates in the consolidated financial statements included goodwill (net of accumulated
amortization). Goodwill is amortized on a straight-line basis over the estimated useful economic
life of 10 to 20 years.
Tax Credits
Tax credits from government airtime sales availed under Presidential Decree No. 1362 are
recognized in the books upon actual airing of government commercials and advertisements. This
is included under “Other noncurrent assets” in the balance sheets.
Production and Distribution Business
Production and distribution business, included under “Other noncurrent assets - net” account in
the consolidated balance sheets, is recorded at acquisition cost. This is amortized on a straightline basis over a period of 10 to 20 years.
Income Tax
Deferred income tax is provided using the liability method. Deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between the financial
reporting bases of assets and liabilities and their related tax bases; net operating loss carryover
(NOLCO); and the carry forward benefit of the excess of the minimum corporate income tax (MCIT)
over the regular corporate income tax. Deferred tax assets and liabilities are measured using the
tax rate applicable to taxable income in the years in which those temporary differences are expected
to be recovered or settled and NOLCO and MCIT are expected to be applied. A valuation allowance
is provided for deferred tax assets when it is more likely than not that some or all of the deferred
tax assets will not be realized in the future.
Revenue
Revenue is recognized when it is probable that the economic benefits associated with the
transaction will flow to the Company and the amount of the revenue can be measured reliably.
Airtime revenue is recognized as income on the dates the advertisements are aired.
The fair values of barter transactions are included in airtime revenue and the related accounts.
These transactions represent advertising time exchanged for program materials, merchandise or
service.
Other broadcasting related revenue are short-messaging-system/text-based revenues, sale of news
materials and Company-produced programs which are recognized upon billing and delivery.
33
Net sales and services of subsidiaries include:
a.
Subscription fees and channel lease revenue, which are recognized under the accrual basis
in accordance with the terms of the agreements.
b.
Telecommunications revenue, which are recognized when earned. These are stated net of
the share of the other telecommunications carriers, if any, under existing correspondence
and interconnection agreements. Interconnection fees and charges are based on agreed
rates with the other telecommunications carriers.
c.
Sales of inventories, which are recognized, net of discounts, when delivery has taken place
and transfer of risks and rewards has been completed.
d.
Revenue from services, which are recognized when services are rendered.
Rental income is recognized as income based on the lease agreement.
Interest income is recognized on a time proportion basis that reflects the effective yield on the
asset.
Dividends are recognized when the shareholders’ right to receive payment is established.
Operating Lease
Lease payments under an operating lease are recognized as an expense based on terms of lease
agreement.
Provisions
Starting in 2003, provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the
liability. Where discounting is used, the increase in the provision due to the passage of time is
recognized as an interest expense.
In prior years, provisions for loss contingencies are accrued when it is probable that a liability has
been incurred at balance sheet date and the amount can be reasonably estimated. Otherwise, the
loss contingency is disclosed.
34
Borrowing Costs
Borrowing costs are generally expensed as incurred. Borrowing costs are capitalized if they are
directly attributable to the acquisition, construction or production of a qualifying asset. Capitalization
of borrowing costs commences when the activities to prepare the asset are in progress and
expenditures and borrowing costs are being incurred. Borrowing costs are capitalized until the
assets are ready for their intended use. If the resulting carrying amount of the asset exceeds its
recoverable amount, an impairment loss is recorded. Borrowing costs include interest charges
and other costs incurred in connection with the borrowing of funds.
For financial reporting purposes, interest on loans used to finance the construction of a multistorey building project is capitalized as part of cost of the building during the construction period.
For income tax reporting purposes, such interest is treated as a deductible expense during the
period the interest was incurred.
Pension Plan
Pension expense is determined using the projected unit credit method. This method reflects
services rendered by employees to the date of valuation and incorporates assumptions concerning
employees’ projected salaries. Pension expense includes current service cost plus amortization of
past service cost, experience adjustments and changes in actuarial assumptions over the expected
average remaining working lives of the covered employees.
Earnings Per Share (EPS)
Basic EPS amounts are calculated by dividing the net income for the period attributable to common
shareholders by the weighted average number of common shares outstanding during the period.
Diluted earnings per share are computed as if the stock options were exercised at the beginning
of the year and as if the funds obtained from exercise were used to purchase shares at the average
market price during the year.
35
3.
Segment Information
Segment information is prepared on the following bases:
Business segments: for management purposes, the Company is organized into three business
activities – broadcasting, cable and satellite, and other businesses. This segmentation is the basis
upon which the Company reports its primary segment information. The broadcasting segment is
principally the television and radio broadcasting activities which generates revenue from sale of
national and regional advertising time. Cable and satellite business primarily develops and produces
programs for cable television, including delivery of television programming outside the Philippines
through its DTH satellite service, cable television channels and blocked time on television stations.
Other businesses include movie production, consumer products and services.
Geographical segments: although the Company is organized into three business activities, they
operate in three major geographical areas. In the Philippines, it’s home country, the Company is
involved in broadcasting, cable operations and other businesses. In United States and other locations
(which includes Middle East and Milan), the Company operates its cable and satellite operations to
bring television programming outside the Philippines.
Inter-segment transactions: segment revenue, segment expenses and segment results include
transfers among business segments and among geographical segments. Such transfers are
accounted for at competitive market prices charged to unaffiliated customers for similar services.
Those transfers are eliminated in consolidation.
36
Business Segment Data
The following tables present revenue and income information and certain asset and liability information regarding business segments
for the years ended December 31, 2003, 2002 and 2001.
Broadcasting
Cable and satellite
Other Businesses
Eliminations
2003
2002
2001
2003
2002
2001
2003
2002
2001
2003
$8,632,432
$7,725,348
$8,102,374
$2,956,024
$2,359,011
$1,702,979
$1,126,902
$824,496
$536,335
73,070
–
–
120,455
85,810
80,392
53,981
91,188
68,168
(247,506)
$8,705,502
$7,725,348
$8,102,374
$3,076,479
$2,444,821
$1,783,371
$1,180,883
$915,684
$604,503
($247,506)
$1,927,027
2002
Consolidated
2001
2003
2002
2001
$–
$–
$12,715,358
$10,908,855
$10,341,688
(176,998)
(148,560)
–
–
–
($176,998)
($
$148,560)
$12,715,358
$10,908,855
$10,341,688
$2,314,327
Revenue
External sales
Inter-segment sales
Total revenue
$–
Results
$1,565,210
$2,883,983
($66,625)
($92,222)
$74,128
($191,115)
($68,232)
$342,283
$324,960
$72,025
$1,632,430
$2,795,554
Interest and other financial charges - net
(596,054)
(673,254)
(626,003)
7,798
2,136
(6,906)
2,546
3,133
3,321
–
(1,004)
–
(585,710)
(668,989)
(629,588)
Equity in net earnings (losses) of associates
(221,902)
(416,843)
(188,315)
2,279
–
–
–
–
–
104,256
277,815
148,427
(115,367)
(139,028)
(39,888)
472,287
277,136
111,251
12,715
18,225
45,334
33,512
20,185
11,919
(432,098)
(273,608)
(110,899)
86,416
41,938
57,605
–
–
–
–
(6,380)
–
–
–
–
6,380
–
–
–
–
(151)
(3,100)
(27,393)
3,167
(3,100)
–
–
(660,846)
(431,424)
(794,031)
Segment Result
Others
Pre-acquisition loss
Minority interest
Income tax
Loss from discontinuing operations after tax
Net income (loss)
–
($29,111)
–
–
(27,195)
3,318
–
(571,338)
(398,807)
(786,605)
(44,422)
(22,141)
(2,436)
(2,253)
(272,314)
(8,219)
$1,007,767
$81,128
$1,386,092
$18,966,735
$18,418,753
$19,071,712
2,536,156
2,370,716
2,568,504
$21,502,891
$20,789,469
$8,141,574
–
–
(45,086)
–
–
(10,476)
(4,990)
–
(198)
–
–
–
–
–
–
–
–
–
(272,314)
(8,219)
($71,467)
($56,230)
$65,100
($178,273)
($57,982)
$14,243
$334,392
$106,453
$1,009,174
$165,780
$1,378,333
$2,863,943
$1,910,588
$2,034,277
$1,167,642
$883,594
$1,208,274
($1,140,653)
$61,404
($1,059,150)
$21,857,667
$21,274,339
$21,255,113
3,722
–
–
–
–
–
(2,253,871)
(1,969,353)
(1,983,252)
286,007
401,363
585,252
$21,640,216
$2,867,665
$1,910,588
$2,034,277
$1,167,642
$883,594
$1,208,274
($3,394,524)
($1,907,949)
($3,042,402)
$22,143,674
$21,675,702
$21,840,365
$8,478,769
$9,497,791
$1,331,504
$570,401
$466,153
$489,140
$329,466
$887,825
($1,243,498)
($90,418)
($1,140,230)
$8,718,720
$9,288,218
$9,711,539
$1,741,220
$1,721,764
$1,243,962
$142,152
$134,719
$130,463
$183,647
$246,770
$82,513
($29,688)
$–
$–
$2,037,331
$2,103,253
$1,456,938
242,369
127,405
90,065
111,969
92,625
69,050
31,653
50,250
29,713
–
–
385,911
270,280
188,828
2001
2003
2002
2001
$10,341,688
($77,936)
(2,253)
Assets and liabilities
Segment assets
Investments in associates - at equity
Consolidated total assets
Segment liabilities
Other segment information
Depreciation and amortization of program rights
Noncash expenses other than depreciation and
amortization of program rights
–
Geographical Segment Data
The following tables present revenue and expenditure and certain asset information regarding geographical segments
for the years ended December 31, 2003, 2002 and 2001.
Philippines
United States
Others
2003
2002
2001
2003
2002
2001
2003
2002
Eliminations
2003
2002
Consolidated
Revenue
$10,348,840
$8,921,334
$8,835,191
$2,176,185
$1,749,326
$1,506,497
$190,333
$238,195
$–
$–
$12,715,358
$10,908,855
Inter-segment sales
247,506
176,998
148,560
–
–
-
–
–
(247,506)
(176,998)
(148,560)
–
–
–
Total revenue
$10,596,346
$9,098,332
$8,983,751
$2,176,185
$1,749,326
$1,506,497
$190,333
$238,195
($247,506)
($176,998)
($148,560)
$12,715,358
$10,908,855
$10,341,688
$21,171,704
$21,907,556
$23,830,388
$1,211,504
$821,615
$1,052,379
$2,154,989
$854,480
($3,394,523)
($1,907,949)
($3,042,402)
$22,143,674
$21,675,702
$21,840,365
Property and equipment
770,218
849,440
2,319,299
33,274
25,745
86,456
14,178
21,745
–
–
–
817,670
896,930
2,405,755
Intangible assets
732,738
765,907
503,194
–
–
–
–
212,359
–
–
–
732,738
978,266
503,194
External sales
$–
Other segment information
Segment Assets
Capital expenditures
4.
Discontinuing Operations
In 2002, following the rigid review of the operations of the various subsidiaries, the Parent Company’s
BOD approved the discontinuance of operations of ABS-CBN Consumer Products, Inc., ABS-CBN
Europe Societa Per Azioni, Cinemagica, Inc., ABS-CBN Hongkong, Ltd. and Shopping Network, Inc.,
which have been incurring losses. These subsidiaries were engaged in varied businesses including
operating retail stores and direct sales service centers, cable shopping network, concert production,
remittances and telecom retail, and local and foreign film productions, which were deemed not
aligned with the Parent Company’s core businesses.
ABS-CBN Consumer Products, Inc. ceased operations in the fourth quarter of 2002 and closed 21
retail stores and direct sales service centers nationwide, resulting in a loss of $113.4 million.
Shopping Network, Inc. shut down its cable shopping network and two retail outlets in 2002,
representing $20.7 million of the total loss. ABS-CBN Hongkong, Ltd., the one-stop-shop for Filipinos
in Hong Kong, ceased its activities in concert production, remittance, and telecom retail sales in
October 2002 and resulted in a loss of $57.8 million. In parallel, the investment in ABS-CBN Europe
Societa Per Azioni amounting to $28.8 million was charged to expense in 2002 as operations of
the Company’s remittance offices in Torrino, Padova and Milan are winding up in January 2003.
Ventures in local and foreign film production and related operations comprise the balance of the
loss from discontinuing operations for 2002.
The results of operations of the above-mentioned subsidiaries for the period until discontinuance
have been presented in the statements of income as “Loss from Discontinuing Operations After
Income Tax.”
Total assets and liabilities of the discontinued subsidiaries are presented in the consolidated balance
sheets separately as “Assets of discontinuing operations” and “Liabilities of discontinuing
operations”.
In the Parent Company financial statements, “Assets of discontinuing operations” represent the
remaining advances of the Parent Company to the above subsidiaries. The Parent Company’s
investment in discontinued subsidiaries has been reduced to zero in 2002.
Assets and liabilities of discontinuing operations are as follows:
Assets:
Cash
Receivables - net
Other current assets
Due from related parties
Property and equipment at cost - net
Other noncurrent assets
Liabilities:
Due to related parties
38
2003
2002
$13,191
1,023
653
67
167
2,017
$17,118
$27,309
4,063
793
1,454
4,527
1,366
$39,512
$12,645
4,007
$16,652
$11,691
25,102
$36,793
The results of discontinuing operations are as follows:
2003
$4,129
Net sales and services
Costs and expenses:
Income (loss) from discontinuing operations
Other income (expenses) - net:
Interest and other financial charges
Miscellaneous
Income (loss) from discontinuing operations before income tax
Provision for income tax
Loss from discontinuing operations after income tax
5.
2002
$47,197
2001
$196,209
246
6,098
6,344
(2,215)
37,858
290,538
328,396
(281,199)
50,494
128,370
178,864
17,345
(306)
268
(38)
(2,253)
–
($2,253)
1,004
8,900
9,904
(271,295)
1,019
($272,314)
220
(4,113)
(3,893)
13,452
21,671
($8,219)
Cash and Cash Equivalents
Cash on hand and in banks
Short-term investments
Parent Company
2003
2002
$128,967
$193,198
674,235
272,243
$803,202
$465,441
Consolidated
2003
2002
$800,806
$426,482
779,549
289,106
$1,580,355
$715,588
Cash in banks earn interest at the respective bank deposit rates. Short-term investments are
made for varying periods of up to three months depending on the immediate cash requirements
of the Company, and earn interest at the respective short-term investment rates.
6.
Receivables
Trade receivables (see Notes 8 and 13)
Advances to suppliers
Other receivables
Less allowance for doubtful accounts
Parent Company
2003
2002
$2,155,399 $2,073,854
70,033
18,162
222,257
181,542
2,447,689
2,273,558
111,023
82,833
$2,336,666 $2,190,725
Consolidated
2003
2002
$3,554,687 $3,368,267
70,033
18,162
397,294
293,432
4,022,014
3,679,861
234,206
254,193
$3,787,808 $3,425,668
Other receivables include receivables from employees arising from the Employee Stock
Option Plan (ESOP) amounting to $23.5 million as of December 31, 2002. The receivable
was subsequently collected in 2003.
39
7.
Other Current Assets
Prepaid taxes
Deferred tax assets - net (see Note 22)
Inventories at net realizable value
Prepaid expenses and others
Parent Company
2003
2002
$122,683
$107,706
49,160
45,253
9,799
8,722
55,785
67,622
$237,427
$229,303
Consolidated
2003
2002
$233,200
$180,290
59,047
62,095
148,890
68,660
121,541
103,780
$562,678
$414,825
Inventories consist mainly of materials and supplies of the Parent Company and records and
other consumer products held for sale by subsidiaries.
8.
Investments and Advances
Parent Company
2003
2002
Investments in subsidiaries and associates at equity
Advances to subsidiaries and associates (see
Note 13)
Consolidated
2003
2002
$2,536,156
$2,370,716
$286,007
$401,363
881,389
$3,417,545
886,400
$3,257,116
56,104
$342,111
211,538
$612,901
Investments in subsidiaries and associates follow:
Company
Subsidiaries
Continuing Operations
ABS-CBN Center for Communication Arts, Inc.
ABS-CBN FCLLZ Dubai
ABS-CBN Film Productions, Inc. (ABS-CBN
Films)
ABS-CBN Global Ltd.(ABS-CBN Global)
ABS-CBN Interactive, Inc.
ABS-CBN International, Inc. (ABS-CBN
International)
40
Place of
Incorporation
Philippines
Dubai, KSA
Ownership Interest
2003
2002
Services
Cable and satellite
operations
100.0
Philippines
Cayman Islands
Philippines
Movie production
Holding company
Services
100.0
100.0
100.0
California, USA
Cable and satellite
operations
Consumer products –
publishing
Services
Cable operation
Services
Services
Cable operation
Services - movie films
Consumer products audio production
Broadcasting
Restaurant and catering
services
Services - post production
ABS-CBN Publishing, Inc.
Philippines
Creative Creatures, Inc. (CCI)
Creative Programs, Inc. (CPI)
E-Money Plus, Inc.
Professional Services for Television & Radio, Inc.
Sarimanok News Network, Inc. (SNN)
Sky Films, Inc. (Sky Films)
Star Recording, Inc.
Philippines
Philippines
Philippines
Philippines
Philippines
Philippines
Philippines
Studio 23, Inc. (Studio 23)
TV Food Chefs Inc.
Philippines
Philippines
Roadrunner Network, Inc. (Roadrunner)
Philippines
Principal Activities
100.0(a)
100.0
100.0(a)
100.0
100.0
80.0(a)
80.0(a)
100.0
100.0
100.0
100.0(a)
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
98.9
100.0
98.9
Place of
Incorporation
Company
Principal Activities
Discontinuing Operations
ABS-CBN Consumer Products, Inc.(b)
ABS-CBN Europe Societa Per Azioni(b)
ABS-CBN Hongkong, Ltd.(b)
Cinemagica, Inc.(b)
Shopping Network, Inc.(c)
Philippines
Italy
Hong Kong
Philippines
Philippines
Consumer products
Services
Services
Services
Consumer products
Associates
AMCARA Broadcasting Network, Inc. (Amcara)
Star Cinema Productions, Inc. (Star Cinema)
Sky Vision Corporation (Sky Vision)
Philippines
Philippines
Philippines
Services
Movie production
Cable operation
Ownership Interest
2003
2002
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
49.0
45.0
10.2
49.0
45.0
10.2
Consolidated
2002
$541,281
2001
$586,142
(a)
indirectly-owned through ABS-CBN Global
ceased commercial operations on December 31, 2002
ceased commercial operations on December 31, 2001
(b)
(c)
Acquisition costs
Accumulated equity in net earnings
(losses):
Equity in net losses for the year
from continuing operations
Loss from discontinuing
operations after income tax
Equity adjustments from
translation of subsidiaries:
Translation adjustments
during the year
Parent Company
2003
2002
$4,279,580
$3,915,567
2003
$541,292
(1,654,052)
(964,895)
(139,918)
(890)
38,998
(219,623)
(416,843)
(115,367)
(139,028)
(39,888)
–
(1,873,675)
(272,314)
(1,654,052)
–
(255,285)
–
(139,918)
–
(890)
109,201
98,150
–
–
–
21,050
130,251
$2,536,156
11,051
109,201
$2,370,716
–
–
$286,007
–
–
$401,363
–
–
$585,252
Equity in net losses from continuing operations include goodwill amortization of $43,576 in
2003 and $27,507 in 2002 in the parent company statements of income and $20,152 in 2003,
$13,192 in both 2002 and 2001 in the consolidated statements of income (see Note 10).
41
The detailed carrying values of investments which are carried under the equity method follow:
CPI
ABS-CBN Global
Roadrunner
Sky Vision
SNN
Studio 23
ABS-CBN Films
Amcara
CCI
Others
Parent Company
2003
2002
$997,603
$939,566
378,739
392,387
276,242
262,071
240,334
357,024
204,308
64,731
77,826
77,644
58,668
–
45,673
44,339
19,029
44,473
237,734
188,481
$2,536,156
$2,370,716
Consolidated
2003
2002
$–
$–
–
–
–
–
240,334
357,024
–
–
–
–
–
–
45,673
44,339
–
–
–
–
$286,007
$401,363
The carrying value of the investments exceeded the Company’s equity in net assets of the
subsidiaries and associates by $418,114 and $461,690 as of December 31, 2003 and 2002,
respectively, in the parent company financial statements, and $302,276 and $322,428 as of
December 31, 2003 and 2002, respectively in the consolidated financial statements.
Condensed financial information of the associates follows:
Current assets
Noncurrent assets
Current liabilities
Noncurrent liabilities
Revenue
Cost and expenses
Operating income (loss)
Net loss
2003
$4,659
1,042,677
450,928
601,244
125,821
108,056
64,942
(780,684)
2002
$238,523
2,266,026
358,804
1,149,006
487,177
550,290
(63,113)
(862,583)
2001
$336,293
2,923,147
291,979
1,024,916
182,520
189,009
(6,489)
(884,174)
Sky Vision and CPI
On July 18, 2001, the Parent Company, along with Lopez, Inc. and Benpres Holdings Corporation
(collectively, the Benpres Group), signed a Master Consolidation Agreement (MCA) whereby it
agreed with the Philippine Long Distance Telephone Company and Mediaquest Holdings, Inc.
(collectively, the PLDT Group) to consolidate their respective ownership or otherwise their rights
and interests in Sky Vision and Unilink Communications Corporation (Unilink) under a holding
company to be established for that purpose. Beyond Cable Holdings, Inc. (Beyond) was incorporated
on December 7, 2001 as the holding company. Sky Vision owns Central CATV, Inc. (Central) and
Pilipino Cable Corporation (PCC), which in turn operate cable television systems in Metro Manila
and key provincial areas under the tradenames “Sky Cable” and “Sun Cable.” Unilink owns The
Philippine Home Cable Holdings, Inc. (Home), which operates cable television systems in Metro
Manila and key provincial areas under the tradename “Home Cable.”
Pursuant to the MCA, the Benpres Group and the PLDT Group shall, respectively, own 66.5% and
33.5% of Beyond upon the transfer of their respective ownership and rights and interests in Sky
Vision and Unilink into Beyond. Although the original agreement envisions the transfers to be
completed within six months from signing date, or by January 18, 2002, the Benpres Group and the
PLDT Group agreed to extend this Closing Date.
On December 3, 2003, the Benpres and PLDT Groups, together with the PLDT Beneficial Trust
Fund, executed an Amendment Agreement to the MCA whereby additional closing conditions
were incorporated into the MCA and wherein the Closing Date was extended until such time the
parties shall have completed all conditions precedent under the MCA and the Amendment
Agreement, including the share transfers described above.
42
In relation to the consolidation discussed above, a competitor filed a case before National
Telecommunications Commission (NTC) asking for NTC to declare as null and void the consolidation
of the cable operating companies. It is the opinion of the Company’s legal counsels that the case
filed by the competitor is without legal basis.
In December 2001, the cable companies declared a suspension of payments of principal and interest
due on their loans and thereafter proposed to the creditors a comprehensive restructuring plan
(Plan). As of March 10, 2004, the required majority of Sky Vision and Central’s creditors and a
substantial majority of Home’s creditors have signed the memorandum of agreement (MOA)
covering the restructuring plan. The MOA provided the framework under which the Sky Vision,
Central and Home and the creditors mutually agree to restructure the outstanding debt obligations
which shall become the basis for the Debt Restructuring Agreement, and consent to the proposed
consolidation and merger of the Company, Central and Home. The restructuring terms include,
among others, a stipulation that any or all other amounts accrued but unpaid by Sky Vision and its
major cable operating subsidiaries in respect of interest (including default interest and penalties),
fees (including guarantee fees) and commissions under the terms of existing principal obligations
be forgiven on the restructuring date. The MOA shall be effective for a period of 120 days or until
such date that a Debt Restructuring Agreement is entered into and signed, whichever comes first.
The MOA for the restructuring of the outstanding debt obligation of Sky Vision and Home Cable
expired on February 15, 2004 and has been extended to April 30, 2004. PCC has also been in
discussion with its creditors on the planned restructuring of its loans. As of March 10, 2004, PCC
has signed its debt restructuring agreement with its creditors.
The Plan submitted to the creditors involves the merger of Sky Vision and Home Cable into one
entity and the infusion of a new equity to fund the purchase of set-top boxes. The installation of
set-top boxes is crucial to the entity’s new business case where piracy of its service will be drastically
reduced if not eliminated. The Parent Company has a firm commitment for debt financing to fund
the said equity infusion in Sky Vision. This loan for Sky Vision will be fully secured and requires the
full consent of all creditors of the Parent Company. As of March 10, 2004, the Company has secured
51% consent of its creditors. The Parent Company does not foresee any reason for its creditors to
withhold consent. The Debt Restructuring Agreement of Sky Vision, Central and Home Cable will
be signed upon receipt of the equity infusion of the Parent Company in Sky Vision.
CPI acquired the production and distribution business of three cable channels of Central and has
a cable lease agreement with Central and its cable affiliates for the airing of these channels to
their franchise areas.
As of December 31, 2003, total amount of the Company’s related investments in Sky Vision is as
follows:
Carrying value of investment in Sky Vision
Receivable of CPI from Sky Vision
Portion of the production and distribution business
related to Central and its cable affiliates
$240,334
368,296
175,938
$784,568
43
9.
Property and Equipment at Cost
Parent Company
Cost:
At January 1
Additions
Disposals
Reclassifications
Transfers from (to) subsidiaries
At December 31
Accumulated depreciation:
At January 1
Depreciation charge for the year
Disposals
Reclassifications
Transfers from (to) subsidiaries
At December 31
Net book value
Land and
Land
Improvements
(see Note 27)
Building
and
Improvements
(see Note 27)
$304,569
–
(11,793)
–
–
292,776
$9,086,200
–
(1,772)
249,839
–
9,334,267
–
–
–
–
–
–
$292,776
Television,
Radio, Movie,
and auxillary
Equipment
Other
Equipment
Construction
in Progress
Total
December 31,
2003
December 31,
2002
$4,139,679
35,841
–
57,361
(84,253)
4,148,628
$1,840,995
142,174
(1,606)
69,286
(56,030)
1,994,819
$28,268
519,776
–
(376,486)
(341)
171,217
$15,399,711
697,791
(15,171)
–
(140,624)
15,941,707
$14,670,556
702,760
(158,811)
104,268
80,938
15,399,711
460,216
352,715
–
–
–
812,931
$8,521,336
2,810,007
396,808
–
(11,574)
(83,383)
3,111,858
$1,036,770
1,241,932
298,958
(1,606)
11,574
(47,821)
1,503,037
$491,782
–
–
–
–
–
–
$171,217
4,512,155
1,048,481
(1,606)
–
(131,204)
5,427,826
$10,513,881
3,534,889
1,100,650
(158,811)
–
35,427
4,512,155
$10,887,556
Land and
Land
Improvements
Building
and
Improvements
Television,
Radio, Movie,
and auxillary
Equipment
Other
Equipment
Construction
in Progress
Total
December 31,
2003
December 31,
2002
$304,569
–
(11,793)
–
292,776
$9,165,837
7,954
(1,772)
228,541
9,400,560
$4,826,142
100,525
(2,633)
6,435
4,930,469
$2,166,492
197,127
(50,146)
141,510
2,454,983
$28,268
519,435
–
(376,486)
171,217
$16,491,308
825,041
(66,344)
–
17,250,005
$15,667,215
902,690
(199,520)
120,923
16,491,308
–
–
–
–
–
$292,776
518,281
357,989
–
(8,783)
867,487
$8,533,073
3,240,344
483,161
(2,286)
(22,722)
3,698,497
$1,231,972
1,466,230
376,951
(34,177)
31,505
1,840,509
$614,474
–
–
–
–
–
$171,217
5,224,855
1,218,101
(36,463)
–
6,406,493
$10,843,512
4,030,619
1,393,756
(199,520)
–
5,224,855
$11,266,453
Consolidated
Cost:
At January 1
Additions
Disposals
Reclassifications
At December 31
Accumulated depreciation:
At January 1
Depreciation charge for the year
Disposals
Reclassifications
At December 31
Net book value
Property and equipment of the Parent Company with a carrying amount of $9,219 million as of
December 31, 2003 was pledged as collateral to secure the Parent Company’s long-term debt (see
Note 14).
Unamortized borrowing costs capitalized as part of property and equipment amounted to
$1,088,964 and $1,127,760 as of December 31, 2003 and 2002, respectively. Borrowing costs
capitalized for the year ended December 31, 2001 amounted to $132,268. No borrowing cost was
capitalized beginning 2002.
The gross carrying value of fully depreciated assets that are still in use amounted to $3,504,321 in
2003 and $2,977,564 in 2002 in the Parent Company balance sheets and $3,924,146 in 2003 and
$3,357,040 in 2002 in the consolidated balance sheets.
10.
Other Noncurrent Assets
Parent Company
2003
2002
Tax credits:
With tax credit certificates (TCCs)
Pending issuance of TCCs but supported
by telecast orders
Deferred charges (net of accumulated amortization
of $29,143 in 2003 and $5,775 in 2002)
Production and distribution business - net
(see Notes 8 and 13)
Others - net (see Note 22)
Consolidated
2003
2002
$1,745,968
$1,378,522
$1,745,968
$1,378,522
166,763
580,653
166,763
582,181
93,249
109,719
93,249
109,719
–
101,284
$2,107,264
–
130,078
$2,198,972
666,591
306,078
$2,978,649
709,179
314,771
$3,094,372
Tax credits represent claims on the government arising from airing of government commercials
and advertisements. Pursuant to Presidential Decree No. 1362, these will be collected in the form
of TCCs which the Parent Company can use in paying for import duties and taxes on its broadcasting
equipment. The Parent Company expects to utilize these tax credits within the next 10 years.
Investment in club shares (included in “Others - net”) with a carrying value of $17,232 as of December
31, 2003 was pledged as part of collateral to secure the Parent Company’s long-term debt (see
Note 14).
Production and distribution business consists of the production and distribution business of CPI
as discussed in Note 13, and the distribution business in Middle East which represents the
unamortized portion of the goodwill that arose from the sponsorship between Arab Digital
Distribution (ADD) and ABS-CBN FCLLZ Dubai. This agreement grants the Company the right to
operate in the Middle East with ADD as Saudi sponsor. The goodwill is amortized over a period of
10 years.
45
Movement of program rights (shown separately in the balance sheets), goodwill (included in
investments and advances account), and production and distribution business follows:
Program Rights
Balance at January 1, 2003
Additions
Amortization during the period
Balance at December 31, 2003
Less current portion
Noncurrent portion
Parent Company
$1,570,765
346,008
(486,148)
1,430,625
566,992
$863,633
Consolidated
$1,903,679
732,738
(819,230)
1,817,187
880,975
$936,212
Goodwill
Parent Company
and Consolidated
$461,690
–
(43,576)
418,114
–
$418,114
Production
and Distribution
Business
Consolidated
$709,179
–
(42,588)
666,591
–
$666,591
In accordance with international accounting standards, the Company adopted a policy of classifying
program rights into current and non-current based on estimated year of usage. Accordingly, the
related obligations for program rights which was previously presented as “Accounts payable and
other current liabilities” in the balance sheets, was shown separately in the parent company and
consolidated financial statements and was also classified into current and noncurrent based on
expected year of payments.
In the consolidated financial statements, goodwill amounting to $302,276 ($322,428 in 2002) which
represents goodwill in associates, is presented under “Investments and advances” account in the
balance sheets, while goodwill amounting to $115,838 ($262,263 in 2002) which represents goodwill
from subsidiaries are presented as part of “Other noncurrent assets” account in the balance sheets.
The amortizations of production and distribution business were presented under the “General and
Administrative” expense account in the consolidated statements of income.
11.
Bank Loans
Unsecured peso-denominated
Unsecured dollar-denominated
Parent Company and Consolidated
2003
2002
$220,577
$234,679
–
190,908
$220,577
$425,587
Peso-denominated loans bear average annual interest rates of 9.92% in 2003 and 11.42% in 2002.
Dollar-denominated loans bear average annual interest rates of 5.0% in 2002.
On September 2, 2002, the Parent Company received a notice of default dated August 30, 2002
from Standard Chartered Bank and BNP Paribas for its outstanding loan balance amounting to
$100,000 and $190,908 (US$3,600), respectively. In August 2003, BNP Paribas has agreed to
participate in the Exchangeable Notes Facility Agreement (ENFA) and accordingly, the loans have
been classified as long-term (see Note 14). As of March 10, 2004, the Parent Company is still
negotiating with other banks for possible refinancing of the Standard Chartered Bank loan.
46
12.
Accounts Payable and Other Current Liabilities
Trade
Accrued production cost and other expenses
(see Note 13 and 23)
Accrued taxes
Accrued interest and other current liabilities
13.
Parent Company
2003
2002
$333,851
$473,431
685,054
305,655
94,739
$1,419,299
685,559
407,023
172,983
$1,738,996
Consolidated
2003
2002
$696,121
$693,904
980,566
417,649
347,898
$2,442,234
1,038,635
456,487
251,421
$2,440,447
Related Party Disclosures
In the parent company financial statements, significant transactions of the Parent Company with
its subsidiaries, associates and a related party follow:
Expenses and charges paid by the Parent Company
which are reimbursed by the subsidiaries and
associates
Technical facilities order charges for the use of the
Parent Company’s facilities
Airtime revenue from Sky Films, ABS-CBN Films,
Star Cinema and Bayan Telecommunications
Holdings, Inc. (Bayantel), a subsidiary
of Lopez, Inc.
Rental charges of the Parent Company for the use
of office space
Blocktime fees charged to Studio 23 for the use
of the Parent Company’s equipment
2003
2002
$434,036
$482,028
169,452
126,715
71,092
80,022
38,809
35,770
16,423
18,960
Other transactions with subsidiaries and associates include cash advances for working capital
requirements.
The amounts and balances resulting from the above transactions are reflected in the parent
company balance sheets in the following accounts:
Advances (see Note 8)
(see Note 12)
2003
$150,894
881,389
2002
$160,444
886,400
40,854
201,303
13,219
291,665
47
In the consolidated financial statements, transactions of the Company with its associates and
related parties follow:
Termination cost charges of Bayantel to ABS-CBN
Global
License fees charged by CPI to Central(a), PCC and
Home Cable
Blocktime fees paid by Studio 23 to Amcara(b)
Expenses and charges paid for by the Parent Company
which are reimbursed by the concerned related
parties
Airtime revenue from Star Cinema and Bayantel
Rental charges of the Parent Company for the use
of office space
2003
2002
2001
$99,846
$147,120
$103,852
135,788
82,675
136,300
105,063
103,827
114,500
22,152
14,031
92,347
62,571
50,005
45,131
9,214
7,299
–
Other transactions with associates include cash advances for working capital requirements.
On a consolidated basis, the amounts and balances resulting from the above transactions are
reflected in the consolidated balance sheets in the following accounts:
Receivables (see Note 6)
Advances (see Note 8)
2003
$279,902
273,303
56,104
75,473
2002
$178,561
264,799
211,538
113,073
(a) License Fees Charged by CPI to Central
On December 29, 2000, the Parent Company and CPI entered into a Sale Agreement with
Central for the acquisition of production and distribution business and the related program
rights and property and equipment of three cable channels, namely, Lifestyle Channel, Pinoy
Blockbuster Channel and Video-ok Channel for $671,141. Pinoy Blockbuster Channel and
Video-ok Channel have been renamed as Cinema One and Myx, respectively, in 2003.
CPI entered into a cable lease agreement (Agreement) with Central for the airing of these
channels to the franchise areas of Central and its cable affiliates. The Agreement with Central
is for a period of five years effective January 1, 2001, renewable upon mutual agreement.
Under the terms of the Agreement, CPI will receive license fees from Central computed based
on agreed rates and on the number of subscribers of Central. As the owner of the said cable
channels, CPI will develop and produce its own shows and acquire program rights from various
foreign and local suppliers.
(b) Blocktime Fees Paid by Studio 23 to Amcara
Studio 23, Inc. owns the program rights being aired in UHF Channel 23 of Amcara. On July 1,
2000, it entered into a blocktime agreement with Amcara for its provincial operations.
48
14.
Long-term Debt
Exchangeable notes (see Note 11)
Syndicated loans payable to local banks
Loan payable to a local bank
Less current portion
Parent Company and Consolidated
2003
2002
$3,209,868
$3,437,726
1,860,000
1,940,000
500,006
500,006
5,569,874
5,877,732
2,115,971
484,438
$3,453,903
$5,393,294
Exchangeable Notes
On September 2, 2002, the Parent Company entered into an Exchangeable Notes Facility Agreement
(ENFA) with a local bank and certain financial institutions (Facility Lenders) for a term loan facility
with an aggregate amount of $3,437,726 for the purpose of raising permanent working capital
and/or refinancing of its short-term loans used or to be used to upgrade its existing plant and
network facilities. The term loan facility is classified as Floating Rate Notes and Fixed Rate Notes
both with a term of 5 years and which are exchangeable into bonds subject to the bond issuance
requirements as provided for in the ENFA. The ENFA is covered by a Mortgage Trust Indenture
(MTI) entered into by the Parent Company and facility lenders over the Company’s property and
equipment with a net book value of $9,219 million and investment in club shares with a carrying
value of $17,232 as of December 31, 2003.
On September 16, 2002, short-term loans amounting to $3,437,726 were converted to $2,838,236
floating rate notes and $599,490 fixed rate notes with an interest rate of 8.0808% and 13.1313%,
respectively. Interest payments are due every quarter starting December 16, 2002 while principal
payments will be due every quarter starting September 16, 2003 until September 16, 2007.
The ENFA contains provisions regarding, among others, change in character of the business, change
in controlling ownership, availment of any indebtedness, merger and consolidation, declaration of
dividends, purchase of its own capital stock, maintenance of certain financial ratios and granting
of guarantees. As of December 31, 2003, the Parent Company is in compliance with the covenants
of the ENFA.
In August 2003, BNP Paribas participated in the ENFA and accordingly, the loans have been classified
as long-term (see Note 11).
Syndicated Loans Payable to Local Banks
Syndicated loans payable to local banks consist of long-term loans under JEXIM 4 program of a
local development bank amounting to $2,000,000. The loan was used to finance the construction
of the multi-storey building and acquisition of equipment. The loan is payable in 15 unequal quarterly
payments commencing in May 2002 with interest payable quarterly in arrears at 10.93% per annum.
49
Loan Payable to a Local Bank
The Parent Company has a Loan Agreement with a local bank for US$37,908 payable in two equal
installments, without need of notice or demand, on March 19, 2002 and 2004. Interest is payable
quarterly at three-fourths percent (3/4%) above 3-month LIBOR.
The Parent Company has a forward foreign exchange agreement (forward contract) with the same
bank which is co-terminus with the term of the loan. Under the terms of the forward contract, the
Parent Company shall pay the local bank, on each due date of the loan, the equivalent Philippine
peso amount of the dollar loan based on its original spot exchange rate of $26.38. The Philippine
peso amount of the loan shown in the balance sheets is based on its original spot exchange rate
of $26.38.
Under the terms of the above loans, the Parent Company shall use the proceeds of the loans
exclusively for the purpose of financing the construction of its multi-storey building and acquisition
of equipment. The loan covenant requires the Parent Company to, among others, maintain certain
financial ratios; not allow any of its assets to be subject to any lien, except to the extent allowed
in the loan; and, contract another loan with a maturity of more than one year, if such obligation will
result in a violation of the prescribed financial ratios.
With the conversion of majority of ABS-CBN’s short-term loans in September 2002 to long-term
secured loans in relation to the ENFA, the existing syndicated loans payable to a local bank
amounting to $1,860,000 and the long-term loan payable to a local bank amounting to $500,006
as of December 31, 2003 were secured, by including them in the MTI discussed above. The payment
schedules of the syndicated loan and the loan payable to a local bank remained the same.
Repayments of long-term debt are scheduled as follows:
2004
2005
2006
2007
15.
$2,115,971
1,955,965
855,965
641,973
$5,569,874
Stockholders’ Equity
a. On April 24, 1998, Benpres Holdings Corporation, Inc. (BHC), then major stockholder of ABSCBN, transferred all of its investments in ABS-CBN to Lopez, BHC’s Parent Company, in exchange
for convertible and nonconvertible notes (Notes). The convertible notes can be exchanged by
BHC for the ABS-CBN shares transferred. The Notes shall terminate on any earlier date if the
convertible notes have been converted or when Lopez has satisfied its obligations with respect
to all such convertible notes that have been properly converted. After the transfer, Lopez had
all the voting rights associated with the shares.
On December 28, 1998, BHC sold a portion of the Notes to ABS-CBN for $800,000, the
equivalent market value of the underlying 40 million ABS-CBN shares.
50
On September 29, 1999, ABS-CBN Holdings Corporation (50% owned by Lopez), offered
132 million Philippine Deposit Receipts (PDRs) relating to 132 million ABS-CBN shares. Each
PDR grants the holder, upon payment of the exercise price and subject to certain other
conditions, the delivery of one ABS-CBN share or the sale of and delivery of the proceeds of
such sale of one ABS-CBN share. The ABS-CBN shares are still subject to ownership restrictions
on shares of corporations engaged in mass media and ABS-CBN may reject the transfer of
shares to persons other than Philippine nationals. The PDRs may be exercised at any time
from October 7, 1999 until the expiry date as defined in the terms of the offering. Any cash
dividends or other cash distributions in respect of the underlying ABS-CBN shares shall be
applied by ABS-CBN Holdings Corporation towards payment of operating expenses and any
amounts remaining shall be distributed pro-rata among outstanding PDR holders. The PDRs
were listed in the Philippine Stock Exchange on October 7, 1999.
The Notes held by ABS-CBN were amended to allow for conversion into shares or into PDRs.
ABS-CBN converted $200,000 of the Notes into PDRs underlying 10 million ABS-CBN shares
and these are shown as “Philippine deposit receipts convertible to common shares” in the
Stockholders’ Equity section of the balance sheets. The remaining $600,000 of the Notes
underlying 30 million ABS-CBN shares were converted into 30 million PDRs and these PDRs
were included in the PDR offering described above.
b. On March 29, 2000, the BOD approved as ESOP covering 6,080,306 shares. In 2002, all the
shares acquired by the Parent Company covering this ESOP, were exercised by the employees.
As of December 31, 2003 and 2002, there are no more outstanding ESOP.
c.
On March 28, 2001, the BOD approved the additional appropriation on retained earnings
amounting to $2.3 billion for expansion projects.
d. Unappropriated retained earnings available for dividend distribution is adjusted to exclude the
Company’s accumulated equity in net losses of subsidiaries and associates amounting to
$1,873,675, $1,654,052 and $964,895 as of December 31, 2003, 2002 and 2001, respectively.
16.
Agency Commission, Marketing Expenses and Co-producers’ Share
Agency commission
Marketing expenses and
co-producers’ share
Parent Company
2003
2002
$1,427,440
$1,312,650
2003
$1,542,477
Consolidated
2002
2001
$1,418,258
$1,380,707
433,704
$1,861,144
438,266
$1,980,743
411,963
$1,830,221
398,035
$1,710,685
255,852
$1,636,559
Industry rules allow ABS-CBN to sell up to 18 minutes of commercial spots per hour of television
programming. These spots are sold mainly through advertising agencies which act as the buying
agents of advertisers, and, to a lesser extent, directly to advertisers. Substantially, all gross
airtime revenue, including airtime sold directly to advertisers, is subject to a standard 15%
agency commission.
51
Marketing expenses are commissions paid to the Company’s account executives who promote
the Company’s entertainment programs and news and current affairs programs to advertising
agencies.
The Company has co-produced shows which are programs produced by ABS-CBN together with
independent producers. Under this arrangement, ABS-CBN provides the technical facilities and
airtime, and handles the marketing of the show. The co-producer shoulders all other costs of
production. The revenue earned on these shows is shared between ABS-CBN and the co-producer.
17.
Production Costs
2003
Personnel expenses and talent fees
(see Note 23)
Facilities related expenses
Other program expenses
(see Note 13)
18.
Parent Company
2002
2001
$1,708,544
$2,093,655
$1,784,635
$1,588,917
626,193
626,111
651,983
627,836
545,717
713,830
$3,361,497
625,072
$2,959,727
754,883
$3,500,521
670,925
$3,083,396
529,626
$2,664,260
2003
$483,281
393,898
312,266
152,292
474,969
$1,816,706
Consolidated
2002
2001
$429,436
$356,185
249,418
220,564
311,852
148,972
129,053
125,302
361,612
249,575
$1,481,371
$1,100,598
2003
$1,374,699
Consolidated
2002
$1,107,850
Cost of Sales and Services
General and Administrative Expenses
Personnel expenses (see Note 23)
Facilities related expenses
Contracted services
Entertainment, amusement and
recreation
Provision for doubtful accounts
Other expenses (see Note 13)
52
Consolidated
2002
$2,021,474
Inventory cost
Termination costs (see Note 13)
Facilities related expenses (see Notes 13 and 24)
Personnel expenses (see Note 23)
Other expenses (see Note 13)
19.
2003
Parent Company
2003
2002
$578,494
$458,015
2001
$842,406
241,046
141,689
203,642
84,965
426,945
342,040
363,893
180,723
276,065
153,250
99,201
73,508
273,712
$1,407,650
86,574
37,620
280,889
$1,151,705
111,462
179,430
611,897
$3,046,473
101,485
153,477
700,977
$2,608,405
92,375
139,430
820,812
$2,324,338
20.
Interest and Other Financial Charges
Parent Company
2003
2002
Interest expense and other financial
charges
Interest income
21.
($687,567)
14,232
($673,335)
($637,780)
52,070
($585,710)
Parent Company
2003
2002
$303,188
$220,645
(10,705)
(13,558)
79
280
–
–
179,201
59,573
$471,763
$266,940
2003
$21,249
(8,182)
94
(27,393)
73,255
$59,023
($692,113)
23,124
($668,989)
2001
($652,976)
23,388
($629,588)
Miscellaneous
Intercompany revenue (see Note 13)
Foreign exchange losses
Dividend income
Minority interest
Others
22.
($636,415)
39,868
($596,547)
Consolidated
2002
2003
Consolidated
2002
$24,544
(7,410)
292
3,167
24,512
$45,105
2001
$2,023
(17,387)
7,289
(3,100)
65,680
$54,505
Income Tax
Significant components of deferred tax assets and liabilities are as follows:
Parent Company
2003
2002
Deferred tax assets:
Current (shown as part of “Other current assets
- net”) (see Note 7)
Allowance for doubtful accounts
Unrealized foreign exchange loss
Allowance for inventory obsolescence
Less valuation allowance
$35,527
13,633
49,160
–
$49,160
$26,506
18,747
–
45,253
–
$45,253
Consolidated
2003
2002
$74,946
13,633
2,900
91,479
32,432
$59,047
$81,342
18,747
2,150
102,239
40,144
$62,095
53
Parent Company
2003
2002
Noncurrent (shown as part of “Other noncurrent
assets - net”) (see Note 10)
NOLCO
Accrued retirement expense
MCIT
Preoperating expenses written off
$–
–
–
–
–
–
$–
Less valuation allowance
Deferred tax liabilities noncurrent - net
Capitalized interest, duties and taxes (net
of accumulated depreciation)
Project development costs written off
Accrued retirement expense and others
$355,107
(68,226)
(62,312)
$224,569
$–
–
–
–
–
–
$–
Consolidated
2003
2002
$212,712
60,778
7,856
–
281,346
281,346
$–
$79,119
5,525
6,394
167,925
258,963
258,963
$–
$379,176
(90,968)
(48,405)
$239,803
$355,107
(68,226)
(62,011)
$224,870
$379,176
(90,968)
(48,405)
$239,803
2003
$672,731
(11,885)
$660,846
Consolidated
2002
2001
$444,267
$854,537
(12,843)
(60,506)
$431,424
$794,031
The provision for (benefit from) income tax is as follows:
Current
Deferred
Parent Company
2003
2002
$590,558
$415,494
(19,141)
(16,687)
$571,417
$398,807
MCIT of the subsidiaries amounting to $7,856 can be claimed as tax credit against future regular
corporate income tax as follows:
Year Incurred
2001
2002
2003
Expiry Dates
December 31, 2004
December 31, 2005
December 31, 2006
Amount
2,585
2,172
3,099
$7,856
NOLCO of the subsidiaries amounting to $664,727 can be claimed as deductions from regular
corporate income tax as follows:
Year Incurred
2001
2002
2003
54
Expiry Dates
December 31, 2004
December 31, 2005
December 31, 2006
Amount
108,346
120,800
435,581
$664,727
The reconciliation of income from continuing operations before income tax computed at the
statutory tax rate to provision for income tax as shown in the statements of income is as
follows:
Statutory tax rate
Additions to (reduction in) income
taxes resulting from the tax effects of:
Equity in net losses of investees
Interest income subject to final
tax
Change in valuation allowance
Nondeductible interest and
others
Effective tax rate
23.
Parent Company
2003
2002
32%
32%
2003
32%
Consolidated
2002
32%
2001
32%
4
16
2
5
1
(1)
–
(1)
–
(1)
1
(1)
6
–
1
1
36%
1
48%
6
40%
8
50%
2
36%
Pension Plan
The Company has a funded, noncontributory and actuarially computed pension plan covering
substantially all of its employees. The benefits are based on years of service and compensation
during the last year of employment.
As of January 1, 2003, the latest actuarial valuation of the Parent Company, the actuarial present
value of pension benefits amounted to $360.9 million. The fair value of the plan assets amounted
to $60.9 million. The unfunded present value of pension benefits amounted to $300.0 million.
On a consolidated basis, as of January 1, 2003, the latest actuarial valuation of the Company, the
actuarial present value of pension benefits amounted to $373.7 million. The fair value of the plan
assets amounted to $60.9 million. The unfunded present value of pension benefits amounted to
$312.8 million.
The principal actuarial assumptions used to determine pension benefits were a discount rate of
12%, a salary increase of 9% and a return on plan assets of 12%. Actuarial valuations are made at
least once every three years. The Company’s annual contribution to the pension plan consists of
payment covering the current service cost for the year plus payment towards funding the actuarial
accrued liability.
Total pension expense of the Company amounted to $87.6 million in 2003 and $59.0 million in
2002 and $19.7 million in 2001 ($82.7 million in 2003 and $55.7 million in 2002 for the parent
company).
55
24.
Commitments and Contingencies
a. The Parent Company and subsidiaries lease office facilities, space and satellite equipment.
Future annual minimum lease payments are as follows:
Period
January 1, 2004 – December 31, 2004
Thereafter
Amount
$279,269
177,445
144,367
134,787
117,144
35,419
b. The Company has contingent liabilities with respect to claims and lawsuits filed by third parties.
Management, after consultations with outside legal counsels, is of the opinion that the eventual
liability from these claims cannot be presently determined, if any, and an adverse judgment in
any one case will not materially affect its financial position and results of operations.
c.
As a customer of the Manila Electric Company (“Meralco”), an associate of Lopez, the Company
could expect to receive a refund for some of its previous billings. On April 30, 2003, the Third
Division of the Supreme Court (SC) denied the Urgent Motion for Consideration filed by Meralco,
rendering the SC decision dated November 15, 2002 final and executory. The decision mandates
that Meralco refund its customers $0.167 per kilowatt-hour starting with the billing cycles
from February 1998 until May 2003, or credit the refund in favor of the customers against their
future power consumption.
Meralco had reached an agreement with the Energy Regulatory Commission (ERC) on the
manner and timing of the refund. The refund to the smaller, mostly residential, customers
(Refund Phases I to III) will first be satisfied and is presently ongoing. Refunds to commercial
and industrial customers (Refund Phase IV) are proposed to be paid over a period of
approximately five years starting May 2005. Details of Refund Phase IV will require further
ERC approval.
The Company is covered by Refund Phase IV. It will recognize the Meralco refund when it is
virtually certain of collection, both as to amount and timing of receipt.
25.
EPS Computations
Basic EPS amounts are calculated by dividing the net income for the period attributable to common
shareholders by the weighted average number of common shares outstanding during the period.
For the purpose of calculating diluted EPS, the net income attributable to common shareholders
and the weighted average number of shares outstanding are adjusted for the effects of all dilutive
potential common shares from exercise of share options. The number of common shares is the
weighted average number of common shares plus the weighted average number of common
shares which would be issued on the exercise of share options. Share options are deemed to
have been converted into common shares on the date when the options were granted.
56
The following table presents information necessary to calculate EPS:
Parent Company
2003
2002
(a)
(b)
(c)
(d)
(e)
Income from continuing operations
after income tax
Loss from discontinuing operations
after income tax
Net income
2003
Consolidated
2002
2001
$1,011,427
$438,094
$1,011,427
$438,094
$1,386,552
(2,253)
$1,009,174
(272,314)
$165,780
(2,253)
$1,009,174
(272,314)
$165,780
(8,219)
$1,378,333
Weighted average shares
outstanding
769,583,312
Number of shares under option
–
Weighted number of shares that
would have been issued at fair
value
–
Adjusted weighted average common
shares - diluted
769,583,312
769,583,312
–
769,583,312
–
769,583,312
–
769,583,312
825,306
–
–
–
(952,400)
769,583,312
769,583,312
769,583,312
769,456,218
Basic EPS:
Income from continuing operations
after income tax (a/d)
Loss from discontinuing operations
after income tax (b/d)
Basic EPS (c/d)
$1.314
$0.569
$1.314
$0.569
$1.802
(.003)
$1.311
(0.354)
$0.215
(.003)
$1.311
(0.354)
$0.215
(0.011)
$1.791
Diluted EPS (c/e)
$1.311
$0.215
$1.311
$0.215
$1.791
Outstanding stock options will have a dilutive effect under the treasury stock method only when
the average market price of the underlying common shares during the period exceeds the
exercise price of the option.
In 2001, where the effect on EPS of the assumed conversion of stock options would be antidilutive, basic and diluted EPS are stated at the same amount. As of December 31, 2003 and 2002,
there are no more outstanding ESOP (see Note 15).
26.
Note to Statements of Cash Flow
Parent Company
2003
2002
Noncash investing and financing
activities:
Conversion of short-term loans to
long-term debt
Transfer of TCC from a subsidiary
and an associate
Transfer of property and equipment
from subsidiaries
Sale of ESOP on account
2003
Consolidated
2002
2001
$190,908
$3,437,726
$190,908
$3,437,726
$–
–
232,997
–
201,305
–
–
–
45,511
–
–
–
–
–
–
82,558
57
27.
Registration with Philippine Economic Zone Authority
On February 13, 2003, the Philippine Economic Zone Authority (PEZA) under Resolution No. 03-038
of its Board of Directors, approved the Parent Company’s application for the declaration of the
10,000 square meter lot located along Mother Ignacia Avenue corner Sgt. Esguerra Street, Diliman
Quezon City, as an Information Technology (IT) Zone to be known as Eugenio Lopez Jr. Communication
Center (ELJCC) and registration of the Company as Developer/Operator of the said IT zone.
Pursuant to Republic Act 7916 (as amended), its Implementing Rules and Regulation, and PEZA
Board Resolution No. 03-038 on June 25, 2003, the President of the Philippines issued Proclamation
No. 410 creating and designating 10,000 square meters of land where ELJCC is located, as an
Information Technology (IT) Zone. Accordingly the Parent Company became a PEZA registered
Developer/Operator of ELJCC subject to the terms and condition of the Registration Agreement.
The Parent Company, however, is not entitled to PEZA incentives under Republic Act No. 7916 (as
amended).
28.
Other Matter
In 1972, the Parent Company discontinued its operations when the government took possession
of its property and equipment. In the succeeding years, the properties were used without
compensation to the Parent Company by Radio Philippines Network, Inc. (RPN) from 1972 to 1979,
and Maharlika Broadcasting System (MBS) from 1980 to 1986. A substantial portion of these
properties was also used from 1986 to 1992 without compensation to the Parent Company by
People’s Television 4, another government entity. In 1986, the Parent Company resumed commercial
operations and was granted temporary permits by the government to operate several television
and radio stations.
The Parent Company, together with Chronicle Broadcasting System, filed a civil case on January
14, 1988 against Ferdinand E. Marcos and his family, RPN, MBS, et. al, before the Sandiganbayan to
press collection of the unpaid rentals for the use of its facilities from September 1972 to February
1986 totaling $305,400 plus legal interest compounded quarterly and exemplary damages of
$100,000.
The BOD resolved on June 27, 1991 to declare as scrip dividends, in favor of all stockholders of
record as of that date, whatever amount that may be recovered from the foregoing pending claims
and the rentals subsequently settled in 1995. The scrip dividends were declared on March 29,
2000. In 2003, an additional scrip dividends of $13,290 were recognized for the said stockholders.
On April 28, 1995, the Parent Company and the government entered into a compromise settlement
of rental claims from 1986 to 1992. The compromise agreement includes payment to the Parent
Company of $29,914 (net of the government’s counterclaim against the Parent Company of $67,586)
by way of tax credits or other forms of noncash settlement as full and final settlement of the
rentals from 1986 to 1992. The TCCs were issued in 1998.
58
We are ABS-CBN.
We share one dream.
We share one purpose.
We share one victory.
In the 2003 celebration of our
50th Anniversary,
we honor not only what we have
accomplished as a company, but
everything that made that success
possible.
The employees.
The programs.
The personal memories, the
corporate milestones,
and the underlying spirit of service.
In celebrating fifty years, we
celebrate who we are…
and we celebrate what we can do.
Because we’ve done it before.
And we will do it again.
59
We are known for what we do…
and the way in which we tell it.
Our critically acclaimed programs.
Our pioneering formats.
Even our name.
ABS-CBN Kapamilya Homecoming
They manned the camera or the cash box. They wrote
the songs, or sang them. They danced on stage, or set the stage—
with their management decisions, their creative concepts, or their
logistical support.
They are the ABS-CBN employees, past and present,
gathered under one roof to celebrate what connects them—across
generations, across regions. “We are ABS-CBN.”
Welcome home, Kapamilya.
Four thousand former employees, executives and talents
gathered in the ABS-CBN compound, led by father of Philippine
Television himself, James Lindenberg (the founder of the Bolinao
Electronics Corporation). The air crackled with bursts of laughter,
camera flashes, and greetings shrieked across the room. Chairman
and CEO Gabby Lopez, President and COO Freddie Garcia, Head
i n
and EVP for Entertainment Charo Santos-Concio, SVP for
Integrated News & Current Affairs Dong Puno and event
organizer SVP for Media Asset Management and Business
Development Monchet Olives mingled with the crowd. Age and
position didn’t matter; everyone there was kapamilya… everyone
there was ABS-CBN.
The reunion featured the ABS-CBN Treasure Hunt of old
ABS-CBN souvenirs and memorabilia—equipment, photographs,
print ads, some dating as back as 1930. Many of them came from
private collections of employees—keepsakes of a cherished time
when they became part of ABS-CBN’s history.
Similar reunions took place across the country, through
the nationwide Happy Fifty-esta celebrations. With typical ABSCBN creativity, employees prepared dance and song numbers,
audio-visual presentations capturing key milestones.
For one whole day, the ABS-CBN kapamilyas embraced,
passed around old photos, and regaled the “new generation”
with the most heart-warming stories of camaraderie and secrets
of successes at work and in life. And for one whole night,
everyone got mesmerized as the most luminous stars of
Philippine Televions share the same stage to entertain and
inspire their family.
Tours of the latest ABS-CBN facilities also elicited oohs
and aahs—yes, ABS-CBN has come a long way, but it was a
journey they helped make possible. Salamat po, Kapamilya.
m e m o r i a m
FRANKIE EVANGELISTA
1934-2004
Formally, he was Francisco J. Evangelista, but for millions he was simply “Ka Kiko,” the face and
voice that became inextiricably linked with ABS-CBN News. Ka Kiko’s career in broadcasting
spanned the entire lifetime of TV in the Philippines since he joined Alto Broadcasting in 1953.
But his career spanned not just five decades of Television but the entire range of broadcasting
work, from DJ duties to news, production and merchandising. And everywhere, he excelled. At
23, he was production manager of a major station, and in the pre-martial law ABS-CBN, he was
executive producer of hit shows, Super Laff-In, Panagimpan and others.
But it was his qualities in front of the camera that made him indelible: the warm baritone, the
relaxed delivery, the aura of steadiness and calm. On Pulso, the ad-libbed editorial of TV Patrol,
he played the sober voice of reason, summing up an issue in his inimitable way. Pulso helped
make the new show a huge hit when it premiered in March 1987.
He said, “What we were talking about was what the people wanted to ask or to express. Many
would call us up, wanting to discuss our editorial. So TV Patrol got people involved in the news.
Which is what we wanted... for the audience to be involved, not merely captive listeners. From
then on, the people became very much involved in the affairs of state. That is to me a major
achievement for ABS-CBN News.”
Ka Kiko was also known as a journalist of the old school, always pressing his younger
colleagues to go deeper into the whys of a story, doing more research, and becoming more
than just mere newsreaders. He provided many young TV journalists with a visible standard of
excellence.
On 18 February 2004, Frankie Evangelista (born on 24 July 1934) died of complications arising
from lung cancer. He will always be remembered.
60
OctoberBest
Revelries escalated as the anniversary month of October was
specially packaged to highlight the best among the rest with
OctoberBest. High-end production values and unparalleled
creativity characterized the production of two of the most extensive
documentaries. Sa Mata ng Balita gathered nine of the most
prominent news personalities in the country to re-live the most
significant events that shaped the country’s history. And to tell the
tale of five decades of enduring romance of television and its Pinoy
audience, Limampung Taong Ligawan, painstakingly searched and
recovered rare pre-martial law footages from Associated Press TV
and ABC, USA.
Celebrities, politicians, society luminaries, and
business tycoons attended the by-invitation-only event, where
they experienced a musical journey through ABS-CBN’s
biggest milestones, from its beginnings as Alto Broadcasting
System (ABS), its merger with Chronicle Broadcasting Network
(CBN), through all the golden years of Philippine Television and
the shows that helped make that period great. The musical
arrangements, written specifically by Ryan Cayabyab for the
occasion, was accompanied by special VTRs with clips of the
most famous shows.
Kapamilya: ABS-CBN at 50
2003 NEW YORK FESTIVALS BRONZE MEDAL AWARDEE
These are the programs that shaped Filipino lives.
The history both of ABS-CBN, and of Philippine television.
And as we celebrate the last fifty years, we lay our claim on the
next fifty.
ABS-CBN’s digitally animated 50 years Gold Station
ID garnered a bronze world medal from the New York Festivals
(NYF), an international competition that recognizes the World’s
best work in Television Programming and Promotion
Showcase. Created by Creative Communications Management
Team (CCM) Division, the Station ID impressed an international
board of judges comprising the veritable “Who’s Who” of the
broadcast industry.
This is our legacy. This is our promise.
It was known among employees as The 50 Years
Extravaganza—no explanations needed, except that it was the
greatest party Manila had ever known. The biggest names in
Philippine television, participating in the most elaborate and
carefully prepared performances, with a whopping P20 million
budget for sets, costumes, and other production support, and the
direction of some of the biggest names in showbusiness: stage
director Ryan Cayabayab, production head Johnny Manahan, and
management supervision of Charo Santos- Concio.
50 YEARS STATION IDs
2004 GOLD QUILL AWARD OF EXCELLENCE
By taking its audience to a two minute visual journey
using the most memorable images and television experience
through the ABS-CBN’s Station ID, the network earned the
recognition of Excellence in Audio Visual Division in the
recently concluded 2004 Gold Quill Awards.
ROLANDO V. CRUZ
1937-2003
ROLLY CRUZ or “RVC” to everyone, joined ABS-CBN as a messenger in 1959 earning P4 a day. From
that humble start, he rose to become a pillar of the network as Assistant General Manager and the
steady right hand of his longtime friend, retired-President and COO Freddie Garcia.
After reaching the post of Assistant Personnel Manager in the pre-Martial Law ABS-CBN, Rolly moved
over to the programming and production side. With Mr. Garcia, he ran the very successful Network
Marketing, which picked one ratings hit after another for another TV station. After 1986, both Freddie
and Rolly returned home to ABS-CBN, where they brought the network back to total dominance by
1988. On top of his regular duties, Rolly Cruz spearheaded many pioneering efforts, such as the
Regional Network Group, the ABS-CBN News Channel, and the integration of ABS-CBn News and
Current Affairs.
But RVC meant more to ABS-CBN than just his management achievements. For many of the younger
executives, he was a mentor and father figure, a living connection to the values and the vision of the
pre-1972 ABS-CBN. He truly believed in ABS-CBN as a family. He always kept an eye out for the “little
guy” and for those just starting out in ABS-CBN. No doubt, he was mindful of how he too had faced
many obstacles on his way to the top. Freddie Garcia said, “He always has an ear for people who
want him to hear their side of the story. That’s Rolly, he’s a great man. He’s a very good friend.”
On 6 May 2003, Rolly Cruz (born on 24 October 1937) died of complications arising from a stroke,
at the age of 66. He will be sorely missed.
61
board of
directors
From left to right (front row):
Board Member MANUEL L. LOPEZ JR., Board Member PRESENTACION L. PSINAKIS, Chairman & CEO EUGENIO L. LOPEZ III,
Board Member OSCAR M. LOPEZ, Board Member MANUEL M. LOPEZ, Board Member FEDERICO R. LOPEZ
(back row):
Vice-Chairman AUGUSTO ALMEDA LOPEZ, Board Member ROBERTO F. DE OCAMPO, Board Member PETER D. GARRUCHO JR.
62
Chairman & CEO
Vice-Chairman
AUGUSTO ALMEDA LOPEZ
President & COO
FEDERICO M. GARCIA*
Board Members
OSCAR M. LOPEZ
MANUEL M. LOPEZ
PRESENTACION L. PSINAKIS
MANUEL L. LOPEZ JR.
FEDERICO R. LOPEZ
PETER D. GARRUCHO JR.
ROBERTO F. DE OCAMPO
VICENTE R. JAIME**
* retired effective 31 December 2003
** resigned effective 28 January 2004
63
management
committee
64
65
awards &
recognition
CATHOLIC MASS MEDIA AWARDS
STRAIGHT TALK
GOOD NEWS OF TED FAILON
USAPANG BUSINESS
UAAP CHEERING COMPETITION
CHIKAHAY ‘TA
BANTAY USOK
TV PATROL
LAGI KITANG NAAALALA
HOME ALONG DA RILES
WANSAPANATAYM
KUMIKITANG KABUHAYAN
RADYO PATROL BALITA
DZMM UPDATE IRAQ
DZMM SIKAP PINOY
DEKADA ’70
AWIT SA INA NG SANTO ROSARIO
(interpreted by Jamie Rivera)
17TH STAR AWARDS FOR TELEVISION
TV PATROL
KORINA SANCHEZ
JULIUS BABAO
KNOWLEDGE POWER
ERNIE BARON
F
ANGEL AQUINO, DAPHNE OSEÑA
& AMANDA GRIFFIN
THE CORRESPONDENTS
KAREN DAVILA, ED LINGAO, ABNER MERCADO
PATRICK PAEZ & JIM LIBIRAN
MAGANDANG UMAGA BAYAN
KUMIKITANG KABUHAYAN
KUMUSTA KABAYAN
MUB HOSTS
WILLIE REVILLAME
MAALAALA MO KAYA
JOHN ESTRADA
WANSAPANATAYM
CHERRY PIE PICACHE
CARLO AQUINO
LUIS MANZANO
OK FINE! WHATEVER
AI-AI DELAS ALAS
CLAUDINE BARRETTO
ASAP MANIA
THE BUZZ
CRISTY FERMIN
BOY ABUNDA
GAME KNB?
KRIS AQUINO
MORNING GIRLS WITH KRIS AND KORINA
KORINA SANCHEZ AND KRIS AQUINO
ISANG PAMILYA, ISANG PUSO NGAYONG PASKO
ABS-CBN
Best Talk Show
Best News Magazine :
Best Business News
Best Sports Show
Special Citation Award
Best TV Outdoor Ad
Best News Program
Best Special
Best Drama Series
Best Comedy Program
Best Children’s Program
Finalist, Best Educational Program
Best Radio News Program
Best Special Events Coverage
Best Business News or Feature
Best Film
Best Music Video
Best News Program
Best Female Newscaster, TV PATROL
Best male Newscaster, TV PATROL
Best Educational Program
Best Educational Program Host:,
KNOWLEDGE POWER
Best Lifestyle Show
Best Lifestyle Show Hosts, F
Best Magazine Show
Best Magazine Show Hosts,
THE CORRESPONDENTS
Best Morning Show
Finalist, Best Educational Program
Finalist, Best Talk Show
Best Morning Show Hosts:
Best Public Service Program Host,
WILLINGLY YOURS
Best Drama Series
Best Drama Anthology
Best Drama Actor, KAY TAGAL KANG HININTAY
Best Horror/Fantasy
Best Single Performance by an Actress,
TANGING YAMAN: THE SERIES
Best Single Performance by an Actor
TANGING YAMAN: THE SERIES
Best New Male TV Personality
Best Comedy Show
Best Comedy Actress, WHATTAMEN
Best Female TV Host, ASAP Mania
Best Musical Variety Show
Best Showbiz Oriented Show
Best Female Showbiz Oriented Show Host, S2
Best Male Showbiz Oriented Show Host,
THE BUZZ
Best Game Show
Best Game Show Host, GAME KNB?
Best Celebrity Talk Show
Best Celebrity Talk Show Hosts, MORNING GIRLS
Best Musical Special
Best Station
SOUTHEAST ASIAN FOUNDATION FOR CHILDREN’S TELEVISION AWARDS
EPOL/ APPLE
Anak TV Seal Awardees
SINESKWELA
RAINBOW FISH
HIRAYAMANAWARI
100 DEEDS OF EDDIE MCDOWD
MAGGIE
MATHTINIK
ROLIE POLIE OLIE
GAMEPLAN
THE EXPLORER
PRIX DE JEUNESSE
20TH INTERNATIONAL SCIENCE PROGRAMME
PARIS, FRANCE
SINESKWELA - GRAND PRIZE WINNER
66
LOPEZ AWARD
50 YEARS CAMPAIGN
ABS-CBN
KOMISYON SA WIKANG PILIPINO CITATION
ABS-CBN
2003 ASIAN TV AWARDS
JERRY SINENENG
THE CORRESPONDENTS
Winner, Best Direction (Long Form), MAALAALA
MO KAYA
Runner-up, Best Drama Performance by an Actor,
MAALAALA MO KAYA, “TOROTOT”
Runner-up, Best Drama Performance by an Actress,
MAALAALA MO KAYA, “HELMET”
Highly Commended, Best General News Program
Highly Commended, Best Single Drama or Telemovie
Highly Commended, Best Sports Program
Highly Commended, Best Drama Performance by an
Actor, MAALAALA MO KAYA, “RESPIRATOR’
Finalist, Best Current Affairs Program
2003 New York FESTIVAL AWARDS
ABS-CBN 50 YEARS GOLD SID
Bronze Medal, Best Station/ Network ID
RODERICK PAULATE
EULA VALDEZ
TV PATROL
MAALAALA MO KAYA, “TOROTOT”
GAME PLAN
ROBIN PADILLA
KALASAG AWARD by Department of National Defense & National Disaster Coordinating Event
DZMM Radyo Patrol Red Alert
Awardee
26TH GAWAD URIAN
DEKADA ’70
VILMA SANTOS
PIOLO PASCUAL
LUALHATI BAUTISTA
SHAYNE SARTE-CLEMENTE
Best Picture
Best Actress, DEKADA 70
Best Supporting Actor, DEKADA 70
Best Screenplay, DEKADA 70
Best Cinematography, KAILANGAN KITA
1st GAWAD TANGLAW
DEKADA ’70
CHITO S. ROÑO
VILMA SANTOS
CRISTOPHER DE LEON
PIOLO PASCUAL
Best Picture
Best Director, DEKADA 70
Best Actor, DEKADA 70
51ST FAMAS AWARDS
PIOLO PASCUAL
NUEL NAVAL
“KAILANGAN KITA”
JESSE LUCAS
Best Production Design, KAILANGAN KITA
Best Theme Song composed by Ogie Alcasid
Best Musical Score, 9 MORNINGS
MAKATI 5TH CINEMANILA INTERNATIONAL FILM FESTIVAL
CHITO ROÑO
Special Jury Prize (Network for the Promotions
of Asian Cinema – NETPAC), DEKADA 70
VILMA SANTOS
METRO MANILA FILM FESTIVAL
VITO CAJILI
ALBERT MICHAEL IDIOMA
DODGE LEDESMA
Best Editing, MALIKMATA
Best Sound, MALIKMATA
Best Visual Effects, MALIKMATA
YOUNG CRITICS CIRCLE
Vito Cajili
Rosauro Diaz
Best Achievement in Film Editing, MALIKMATA
Best Achievement in Sound, ANGHEL SA LUPA
16TH AWIT AWARDS:
“HANGGANG”
“HANGGANG”
“HANGGANG”
“THIS GUY’S IN LOVE WITH YOU, PARE”
“LANGIT NA BITUIN”
“KAILANPAMAN”
HEART EVANGELISTA
“Love Has Come My Way”
BITUIN ESCALANTE
“Kung Ako Na Lang Sana”
“KUNG AKO NA LANG SANA”
“KUNG AKO NA LANG SANA”
“ONLY SELFLESS LOVE”
“ONLY SELFLESS LOVE” by Ms. Jamie Rivera
Best Traditional Recording
Best Ballad Recording
Best Musical Arrangement
Best Novelty Recording
Best Movie, TV or Stage Theme
Best Rock Recording
Best Performance by a New Female Artist
Best Performance by a Female Recording Artist
Best Produced Record of the Year
Best Pop Recording
Best Inspirational or Religious Recording
Song of The Year
6TH SHANGHAI ASIAN MUSICAL FESTIVALS
DIVO of Star Records
Best Male Performer
AIDS MEDIA AWARDS
PIPOL
PIPOL
Best News Feature
Best TV News Program
2004 GOLD QUILL AWARDS
ABS-CBN 50 YEARS JOURNEY SID
Award of Excellence, Audio-Visual Division
ARAW AWARDS – ADVERTISING BOARD OF THE PHILIPPINES
ROADRUNNER NETWORK, INC.
Gold, “Pond’s Soft Skin Search”
ABS-CBN INTERACTIVE, INC.
Gold and Best of Medium Award, Medium / Category:
Interactive / Online, Pond’s Facial Wash
Microsite”
th
6 PHILIPPINE WEB AWARDS
www.abs-cbnnews.com
Best Website Winner, News Category
list of
officers
as of 31 January 2004
Chairman and CEO
Vice Chairman
President and COO
AUGUSTO ALMEDA-LOPEZ
FEDERICO M. GARCIA1
BUSINESS DEVELOPMENT
Senior Vice President
AVP & Project Head
JOSE RAMON D. OLIVES
MA. CELIA H. FERNANDEZ
CORPORATE AFFAIRS & PUBLIC RELATIONS
Vice President, Gov’t & Corporate Affairs & PR
Director, Public Relations
Manager, Corporate Affairs
MA. LOURDES LILIA K. ESPINOSA-MANALASTAS
LEAH C. SALTERIO
OFELIA R. ESCAURIAGA
ENTERTAINMENT GROUP
EVP & Head of ABS-CBN Entertainment Group
MA. ROSARIO N. SANTOS-CONCIO
Office of the EVP
Director, Special Events
PATRICIA PAULINE DAZA-PLANAS
Director, Executive Assistant & On-Air Operations Manager FLORIDA C. TAN
Special Projects
Vice President
Production Director
CARMENCITA A. GUERRERO
MICHAEL FRANCIS M. MUÑOZ
TV Production
Vice President, Talk, Variety, & Game
Vice President, Acquisitions
Vice President, Comedy & RNG Programming
Production Director
Production Manager
Production Manager
Production Manager
Production Manager
Production Manager
Production Manager
Production Manager
Production Manager
Manager, Administrative
Manager, Operations
MA. SOCORRO V. VIDANES
ROLDEO ENDRINAL
EVELYN D. RAYMUNDO
JOANNA G. SANTOS
CATHERINE PATRICE O. PEREZ
MARILOU A. ALMADEN
LUIS L. ANDRADA
MA. LOURDES D. BAUTISTA
MA. ROWENA R. BENITEZ
RIZALINA G. EBRIEGA
ANNALIZA A. GOMA
CYNTHIA D. JORDAN
GIA NINA G. SUYAO
NIDA Q. NICOLAS
MYLENE ANTONETTE S. QUINTANA
Creative Communications Management
Vice-President
Director, HR Programs & RNG Promo
Director, Promotions
Senior Manager, Print Graphics & Design
Senior Manager, On-Air Operations
Senior Manager, Integrated Broadcast Design
Senior Manager, TV Entertainment Promo
Manager, Integrated Broadcast Design
Manager, Print Graphics & Design
Manager, Print Production
Manager, Radio Promotions
Manager, TV Entertainment Promo
MA. CARMINDA M. DE LEON
MARIA PILAR ANN L. CARRION
MA. ZITA T. ARAGON
DANILO C. BATALLONES
MA. TERESITA F. NAYVE
JOHNNY S. DE LOS SANTOS
MA. TERESITA E. LIGON1
MAURO T. CALLEJO, JR.
CARMELO B. SALIENDRA
EDGARDO D. RAMOS
OPHELIA E. PALAO
ROSALYN R. ENRIQUE
Talent Development & Management Center
Vice President for Talent Center
Director, Talent Center Operations
Director, Training Center (Technical)
Director, Training Center (Off-Cam Talents)
Manager, Training Center (Off-Cam Talents)
Manager, Talent Center
Manager, Talent Center
JUAN L. MANAHAN
MA. YOLANDA R. ALBERTO
LOURDES M. ROMERO
OSCAR R. LANDERITO
STEPHANIE Q. REINOSO
MARIA ELENA C. ARAGON
MA. RAMONA INES R. NOVALES
CRISELDA T. NAVARRO
Creative Entertainment & Synergy
Vice President
Manager, Licensing
JOAQUIN ENRICO C. SANTOS
KAREN EVE C. COLOMA
MEDIA ASSET MANAGEMENT
Senior Vice President (Concurrent)
Director, International Sales & Distribution
Manager, International Sales & Distribution
Manager, International Sales & Distribution
Manager, Central Library & Archives
Manager, Film Archives
JOSE RAMON D. OLIVES
REENA DE GUZMAN-GARINGAN
LAARNI J. YU
MICHAEL ALLEN TOLENTINO
ADORACION G. CAMACHO
MARY C. DEL PILAR
INTEGRATED ENGINEERING
Vice President, Engineering Division
AVP, Post Production Dept.
AVP, Transmission and Equipment Maintenance Dept.
AVP, Production Engineering and TOC Dept.
Director and Resident Mechanical Engineer
Director, Radio Engineering
Senior Manager, Regional Engineering
Senior Manager, Network Special Action Team - VHF-TV
Senior Manager, Telecoms Engineering
Manager, TV Systems Maintenance and Broadcast IT
Manager, Audio Recording
Manager, Post Production Technical Systems
Manager, Audio Post Production
Manager, Network Special Action Team - AM/FM Radio
Manager, Engineering Research & Development
Manager, News Editing
Manager, Technical Facilities Management
Manager, News Production Engineering
Manager, Technical Operation Center
Manager, Entertainment Production Engineering
Manager, Video Equipment Maintenance
Manager, Visayas-Mindanao Training
RUBEN R. JIMENEZ
RODRIGO V. CARANDANG
RAUL PEDRO G. BULAONG
JOSE RIZALDE M. UMIPIG
DEOGRACIAS S. JORDAN
ALEJANDRO B. SARMIENTO
ROLANDO V. AGBAY
MELVIN C. ACOSTA
FRANKLIN V. MIRA
BERNARDO M. ACOSTA
ERWIN RAYMUND C. MALIMBAN
LEONARDO R. CORPUZ
SANTOS C. BAUTISTA
EDWIN S. MENDOZA
ARMANDO G. ARMADA
RODOLFO M. HERRERA JR.
JAIME C. MONTANEZ
CARLOS S. TOLENTINO
GERONIMO S. BABIERRA
ROMUALDO V. DE JESUS
ANTONIO O. BENITEZ
EDUARDO J. MAGSANOC
MANUEL B. MARANGA, JR.
INTEGRATED NEWS & CURRENT AFFAIRS
Office of the Senior Vice President
RICARDO V. PUNO, JR.
Office of the Vice President, Current Affairs
Vice President, Current Affairs
FATIMA ARLENE S. DE CASTRO1
Business Planning & Strategy
Director, Business Planning & Strategy
MARY JEANE DE MESA-LARANAS
Business & Program Development
Director, Business & Program Development
MYRNA C. DELA TORRE
HR Management
Senior Manager, HR Operation
BELLA F. ONG
Facilities, Management & Security
Manager, Facilities, Management & Security
DISRAELI G. PARRENO
Office of the Vice President, News Production
Vice President
Assistant Vice-President
Senior Manager
Manager, Programs
Manager, Newscasts
Manager, News Features
JESUS J. MADERAZO
MA. PROGENA E. REYES
PATRICK Y. PAEZ
JIM M. LIBIRAN
NORMA D. CUEVA
MARCELO L. PONTI, JR.
67
68
Office of the Vice President, News Operations
Vice President
Director, Newsgathering
Chief Correspondent
News Bureau Chief, Middle East
News Bureau Chief, North America
Director, Regional News
Managing Editor
Managing Editor
Managing Editor
Manager, Newsgathering
Managing Editor, Business Desk
Desk Editor, National Desk
Desk Editor, Local, Police & General Assignment
Desk Editor, National Desk
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Correspondent
Head, Field Production Operation
LUISITA CRUZ-VALDES
DAVID JUDE L. STA. ANA
KORINA B. SANCHEZ
DANIEL K. BUENAFE
MA. REGINA E. REYES
GENEROSO D. OREJANA
RODNEY J. JALECO
IRA BERNARDO V. PANGANIBAN
CESARRIO R. DEL ROSARIO, JR.
CLAUDE NORMAN D. VITUG
JOEL D. GABORNI
JOCELYN T. GRUTA
JOEY FALCON M. ANDRADE
DANILO P. LUCAS
LYNDA J. ABALOS
AUGUSTO G. ABELGAS
JULIUS C. BABAO
DORIS A. BIGORNIA
MARIO V. DUMAUAL
RAMON A. ILAGAN
CARMELO D. MAGDURULANG
HENRY C. OMAGA-DIAZ
ROWENA MAE M. OREJANA
ANA PATRICIA H. PAGKALINAWAN
FERNANDO A. SANGA
JOSEPHINE T. SISON
CARMELITA V. VALDEZ
ANTONIO VICTOR T. VELASQUEZ
ENRICO G. TUAZON
Media Management and Archives
Director
Manager, MMA Services
Media Manager
ALFONSO A. MARQUEZ III
VIRGINIA IRENE H. MAQUITO
FRANCISCO L. ALEJANDRO
Business News Group
Director, Business News Group
Director, Business Desk
CECILIA O. DRILON
MARIA VICTORIA CILETTE L. CO
ABS-CBN News Channel
AVP & Managing Director
Director, News Production
Director, Channel Operations
Senior Manager, Technical Task Force
Manager, Channel Operations
JOSE F. MAGSAYSAY, JR.
JOEL B. SARACHO
DAVID M. CELDRAN
ENRIQUE D. BALLESTEROS
ARLYN DATULIO-ARINES
News Creative & Communications Management
Director, NCCM
Manager, On-Air Post & Graphics
Manager, Promotions
Manager, Special Projects & Production
PATRICK ARIEL L. DE LEON
ROBERT R. QUILAO
HOWARD C. PALOMARES
RONALDO G. CRUZ
MANILA RADIO DIVISION
Vice President, Manila Radio Division & ABS-CBN Sports
Director & Station Manager, DWRR 101.9 FM
Director & Station Manager, DZMM 630KHZ
Manager, Special Projects
Manager, Program & Production Services – DWRR 101.9 FM
Manager, Program & Production Services – DZMM 630KHZ
Manager, Administrative
PETER A. MUSNGI
JOSEPH EMMANUEL B. BALQUIEDRA
ANGELO B. PALMONES
EMMANUEL G. GABLING
ELI BRUCE A. CAPUYAN
MA. MARAH F. CAPUYAN
DANILO T. HALILI
INTEGRATED SALES & MARKETING
Vice President, Sales
Vice President, Channel Sales & Marketing Officers
Vice President, Sales & Marketing Planning
Assistant Vice President, Marketing
Director, Channel Sales & Marketing Officer for Manila Radio
Director, Sales
Director, Channel Sales & Marketing Officer for Sports
Director, Channel Sales & Marketing Officer for Studio 23
Director, Sales Traffic
Director, Creative Sales
Director, Events Marketing
Director, Sales
Senior Manager, Creative Services
Senior Manager, Production Services
Manager, Sales
Manager, Sales
Manager, Marketing Services
Manager, Executive Assistant
Manager, Sales
Manager, Channel Sales & Marketing Officer for RNG
NICANOR C. GABUNADA JR.
ORLANDO G. GALANG
DAVID R. DOMINGUEZ
ALDEN M. CASTAÑEDA
LAWRENCE T. TAN
GEOFFREY D. GARCIA
REGINA T. MARIANO
NICHOLAS D. MONTINOLA
JENNIFER G. ORIA
IMELDA S. VIRGILIO
CHRISTOPHER ALLAN M. CORONEL
EDGAR V. PAMUTE
MA. ELENA A. PASCUA
JENNIFER ANNE T. DE LOS SANTOS
JONATHAN MARTIN A. MONTELIBANO
ELVIRA VICTORIA E. ANGARA
RUBY ANGELA P. APELO
EMILY B. BARCELON
BERNADETTE M. BLANCO
DEBBIE C. LOZARE
JERIEL A. LUCAS
Manager, Channel Sales & Marketing
Officer for Channel 2, News & Current Affairs
Manager, Channel Sales & Marketing Officer for Cable
Manager, Sales
Manager, Channel Sales & Marketing
Officer for Channel 2, TV Entertainment
RESEARCH & BUSINESS LEARNING
Vice President
Senior Manager, Business Research & Connections
Senior Manager, TV Entertainment
Senior Manager, Data Processing & Administrative Officer
Manager, Business Research
Manager, Integrated News and Current Affairs
Manager, Radio & Regional Unit
RONALDO M. MERINO
RODERICK I. RESURRECCION
JULIE ANDREA A. SANTIAGO
EMMANUEL D. TADEO
RAFAEL K. VELOSO
VIVIAN Y. TIN
NICCO A. DE JESUS
LIZA A. ALETA
EILEEN P. BAYLON
BAROY S. MORGA
OLIVE M. CARANDANG2
CLAIRE MARIE T. AYAAY3
REGIONAL NETWORK GROUP
RNG Manila
Vice President
AVP, Mindanao Cluster
Director, Visayas Cluster and Overall Radio Head
Director, Luzon Cluster
Manager, TV Production
Manager, Executive Assistant to the VP
ROLANDO P. VALDUEZA
GEORGE ANGELO G. PADOLINA
JERRY BENEDICT O. BENNETT
ATTY. ABIGAIL E. QUERUBIN
TRISHA E. CORPUS
CLAIRE MARIE T. AYAAY
RNG - Luzon Cluster
Area Manager, Baguio and Dagupan
Station Manager, Naga
Station Manager, Isabela and Head for Tuguegarao Sales Center
Station Manager, Legaspi
Manager, Olongapo Sales Center
OIC - Station Manager, Laoag
OIC- Batangas Sales Center
OIC- Lucena Sales Center
GEMMA Q. CACAS
AMALIA G. VILLAFUERTE
MARIANITO R. FELIPE, JR.
WOODROW A. FRANCIA
PILARCITA L. DE VEYRA
REMEDIOS I. ROCA
JOSE C. DE CASTRO
LODICIA R. JALAGO
RNG - Visayas Cluster
Station Manager, Cebu
Manager, DYAB, Cebu
Manager, Regional Sales
Manager, Marketing, Western Visayas
Station Manager, Tacloban
Station Manager, Dumaguete
Manager, Roxas Sales Center
OIC - Station Manager, Bacolod
OIC - News Manager, Bacolod
OIC - Station Manager, Iloilo
VENERANDA C. SY
LEO A. LASTIMOSA
LORETO M. LAPU-OS, JR.
DESIREE D. BRETAÑA
RANULFO SJ. ABELLANOSA
DANTE J. LUZON
JOANNE BEATRIZ R. DAVIDAS
RELAINE P. ALVIOR
LEILANI S. ALBA
CHARIE MARY LYN G. ILON
RNG - Mindanao Cluster
Station Manager, Davao
Station Manager, Cagayan de Oro
Station Manager, General Santos and
Head for Koronadal Sales Center
Station Manager, Zamboanga
Station Manager, Cotabato
Station Manager, Butuan
Station Manager, Iligan
PAULINETTE T. MADURAMENTE
ANNIE S. GACAYAN
ARTURO C. BONJOC, JR.
MICHIKO M. DE JESUS
RENE MICHAEL D. BAÑOS
CORPORATE SERVICES GROUP
Finance
Vice President and Chief Financial Officer
Assistant Vice President, Finance
Associate Comptroller
Director, Budget
Senior Finance Officer, Engineering Group
Senior Finance Officer, Entertainment Group
Senior Finance Officer, INCA
Senior Finance Officer, RNG
Senior Finance Officer, Support Group 3
Senior Manager, Business Analysis
Senior Manager, Credit, Billing & Accounts Receivable
Senior Manager, FMS Administration & Support
Senior Manager, Systems & Methods
Senior Manager, Traffic Operations
Manager, Asset & Insurance Accounting
Manager, Financial Analysis & Investor Relations
Manager, Financial Reporting
Manager, Systems & Methods
Manager, Traffic Operations
Manager, Treasury and Collection
RANDOLPH T. ESTRELLADO
ANNA KARINA V. RODRIGUEZ
ESPERANZA P. ARMONIA
SONIA PRISCILA P. YAM
OLIVER C. CALMA
RODELLIO A. LUMBO
MA. ENNA L.SANTOS
IRENE C. COPIOZO
JAY FRANCIS Q. SANTOS
LYRA GAY C. FAJARIT
MICAELA R. DAVID-LABAGUIS
MARY JOYCE V. PINGOL
MARIA PAZ J. BALAYAN
JOSELITO L. MAXIMO
NOEL N. DUMA
CYBELE C. LUCERO-REGALADO
ANA LIZA A. ESPIRITU
JENNIFER M. CABANIA
MELANIE E. PEDRON
EDGAR D. CARBONEL
TERESITA C. ESTRELLA
PAUL MICHAEL M. VILLANUEVA
MARY KIM A. HIFE
ALEXANDER T. MARTINEZ
Logistics
Vice President
AVP, Procurement
AVP, Warehousing & Distribution
Director, Technical Requirements, Procurement
Senior Manager, Asset Management,
Warehousing & Distribution
Manager, Importation, Procurement
Manager, Capital Projects, Procurement
Manager, Non-Technical Requirements, Procurement
Human Resources
Vice President
Director, Accounts Management – CSG
Director, Accounts Management – Engineering
Director, Accounts Management – Entertainment
Director, Operations
Director, Systems – Compensation & Benefits
Director, Systems – OMPD
Senior Manager, Accounts Management – RNG
Senior Manager, CMDP
Manager, Accounts Management –
Sales & Marketing and Research & Business Learning
Manager, Account Management – News & Current Affairs
Manager, Internal Job Market
Manager, Subsidiary Support – CPI, Studio 23 & AMCARA
Manager, Subsidiary Support – Star Cinema & Star Records
Manager, Payroll & Timekeeping
Manager, Operations – Recruitment &
Compensation Administration
MERCEDES L. VARGAS
LEONORA V. BUENAVENTURA
RAUL Z. ECHIVARRE
RITA ROWENA C. VILLEGAS
MARIO CARLO P. NEPOMUCENO
LUZVIMINDA A. MORALES
ABS-CBN SUBSIDIARIES
CYNTHIA R. VILLANUEVA
ALEJANDRO T. CORDOVA JR.
JONATHAN B. BUKUHAN
DIVINA T. CORDOVA
ABS-CBN CENTER FOR COMMUNICATION ARTS, INC.
Manager, Workshop, Training & Seminars
BEVERLY A. VERGEL
Principal & Manager, Distance Learning Center
MA. CRISTINA M. GONZALES
PHILIP LAMBERTO L. BERBA
LOURDES C. ABRILLO
ROBERT M. VISBAL, JR.
MA. VICTORIA L. NUGUID
RAUL D. VELASCO
RIZALINA C. DE JESUS
MA. SUSANA M. FLOR
ELIGIO S. BAUTISTA
ERNILDA L. BAYANI
ABS-CBN FILM PRODUCTIONS, INC.
Managing Director
Vice President/ Head, Creative
AVP, Corporate Service Group/ Chief Finance Officer
Director, Ads and Promotions
Director , Distribution
Creative Director
Manager, Video Production/ Supervising Producer
Manager, Post Production/ Supervising Producer
Manager, Booking
Manager, Finance
MARIA LOURDES N. SANTOS
OLIVIA M. LAMASAN
BEVERLY S. FERNANDEZ
MA. TERESITA V. FUENTES
DENNIS MARCO A. LIQUIGAN
MARY ANGELINE Y. PINEDA
ANNALIZA MARIA B. BEJERANO
MARIZEL S. MARTINEZ
ELMA S. MEDUA
ADORA L. JACILA
MARIELIZ C.T. MARAVILLA
Managing Director
AVP, Interactive Content
AVP, Licensing and Syndication
Director, Interactive Content
Director, TELCO Management
Director, Marketing
Director, Technical
Manager / Editor-in-Chief, NewsOnline
Manager, Marketing
Manager, Technical
Manager, ADSales
Manager, Telco Relations
Manager, Telco Relations
Manager, Applications Development
Manager, HR and Administrative
CARLO L. KATIGBAK
ENRIQUE V. OLIVES
RAFAEL L. CAMUS
LUIS PAOLO M. PINEDA
CONSUELO NOLASCO-LOPEZ
ANTONIO P. FERIA, JR.
EUGENE C. PADEN
DANILO-LUIS M. MARIANO
RAFAEL SAN AGUSTIN, JR.
RUSNNEL P. DELA CRUZ
PAMELA RENEE C. REYES
MA. DOLORES TAYKO-SUMULONG
EPHRAIM G. JIMENEZ II
JOSE MARI M. MATRIANO
LALAINE V. COCHING
ELEANOR HENEDINE S. LAURENA
MA. ANTONETTE E. MORENO
HARMIERAVIL B. CABRERA
MA. ASUNCION A. PALMERO
MARIA FE D. SAN PEDRO
NELIA P. SANTOS
JOVELYN C. SY
Information Technology
Vice President & Chief Information Officer
AVP, Solutions Delivery
AVP, Subsidiaries and Affiliates Solutions
Director, Enterprise Systems
Account Manager, Corporate Services Group 1
Account Manager, Subsidiaries & Affiliates Group 1
Account Manager, Subsidiaries & Affiliates Group 2
Account Manager, Operations and Executive Office
Account Manager, Sales and Revenue Management
Manager, BASIS and R&D
Manager, Data Center/Operations
Manager, Systems & Database Administration
Manager, Process and Quality Management
Manager, Web and Workgroup Applications
Manager, Business Intelligence
Manager, ABAP
Manager, News and Broadcast Automation
Manager, Network & Infrastructure Software Management
Manager, FMS/Logistics Functional
Manager, HR Systems Specialist
JOHNNY C. SY
EVELYN L. JAVIER
GENEMAR D. SIMPAO
FELIX C. NARITO, JR.
CECILLE M. ALOC
HEIDELIZA L. BAMBALAN
LIOADOR A. GATAPIA
ELBERT M. BASA
MARVIN A. SANCHEZ
MIGUEL C. KATIGBAK
JOSE ALVIN P. SALAMATIN
SILVESTRE A. CARLOS
ALBERTO J. DULATAS
BESSIE G. FONTE
CECILE MARIE L. ESCAÑO
FERNANDO H. LOPEZ III
EDWIN G. NILOOBAN
JOSELITO O. MAGNAYE
GERALD T. UY
JESSIE D. YAMZON
SHERLY C. ZABALA
RENEE M. PANGA
Legal Services
Vice President, Chief Legal Counsel
Vice President, Legal Counsel
Director, Legal Counsel
Director, Legal Counsel
Senior Manager, Legal Counsel
Senior Manager, Legal Counsel
Manager, Legal Counsel
Manager, Legal Counsel
ANDREFANIO D. SANTOS
DANILO V. MORALES
MAXIMILIAN T. UY
MARIFEL G. GAERLAN-CRUZ
MONA LISA A. MANALO
MARJORIE G. SAGMIT
JUDITH M. ZAMORA
ROY JOHN C. BASA, JR.
Administration and Services
Vice President (Concurrent)
Director
DANILO V. MORALES
ADELINE SUSAN C. CARAG
ELJ Communications Centre Property Management
ALEJANDRO A. CONTRERAS III
Controls Manager
Manager, Technical Services
REGINALD M. MICU
COMMUNICATIONS GROUP
Internal Audit
Vice President, Internal Audit
AVP, Financial/Operations Audit
AVP, IT Audit
Senior Manager, IT Audit
Manager, Financial/Operations Audit
Human Resources
Vice President, Human Resources
Director, Training
ALFREDO P. BERNARDO
SUSAN S. SANTILLAN
ARIEL L. GARCES
FE PERPETUA T. TAFALLA
CARMELA GRACE C. DEL MUNDO
ABS-CBN GLOBAL
Director, Human Resources & Organizational Development
Chief Financial Officer and Group Comptroller
Director, International Communications Services
Director, Technical Services
Senior Manager, On-Air Promotions and
Production Services
Senior Manager, Cable & Satellite Asia Pacific,
Ad Sales, Global Manila
Manager, Program Operations
Manager, Advertising Services
ABS-CBN INTERNATIONAL, N. A.
Vice President & Managing Director
AVP, Finance & Administration
Senior Director, Sales & Marketing
Senior Manager, Customer Service and
Fulfillment Operations
Senior Product Manager, TFC Direct!
Senior Manager, Human Resources
Senior Manager, Information Technology
Senior Manager, Cable Relations & Corporate Marketing
Senior Manager, Advertising Sales
Manager, Financial Reporting
Manager, Production
Product Manager, Star Kargo
Manager, Dealer Sales (TFC Direct!)
Manager, Network Services
Manager, Budget and Systems
Manager, Engineering
Manager, Program Development and Acquisition
Product Manager, Starry Starry Store
Manager, Revenue Reporting
RENE L. ENCARNACION 4
SIXTO S. GADDI
GREGORIO M. PEREZ
JEFFREY H. REMIGIO
JULIO VICTOR R. ZARAGOZA
EDGAR N. LEGASPI
CHRISTINA A. SOQUEÑO
EDITHA B. CONSUL
CECILE ANGELA A. ILAGAN
ELIZABETH B. SIOJO
RAFAEL L. LOPEZ
WILHELM O. ICK
TOMAS L. CONSUNJI
EMMA N. ENDAYA
ESPERANZA C. CABUNOC
MARITES E. MILITAR
DODJIE F. PANAGA
LYLA E. PANIAGUA
MILAGROS G. SANTISTEBAN
GRACE M. CALIXTO
ZOILO M. DE LA CRUZ.
JONAS T. DE LEON
ENRICO GATCHALIAN
MARILU M. GONZALES
KEVIN K. HO
MARIJANE KOA
ATANACIO V. PASCUAL
AUDIE VERGARA
ANDREA W. VERGEL DE DIOS
RAFAEL R. VIZCARRA
69
ABS-CBN TELECOM
Vice President & Managing Director, Telecom
Director, Telecom Retail and Consumer Markets
Manager, Telecom Switch Operations
Manager, Telecom Retail Long Distance
(Card Products and Services)
ZENON D. CARLOS
JOHN KERWIN G. DU
PABLITO R. DUASO
ROSALINDA PLATON
ABS-CBN MIDDLE EAST FZ-LLC
AVP and Managing Director
Director, Finance and Administration
Senior Manager, Operations and Sales
Manager, Sales – Saudi Arabia
RAFAEL A. JISON
EDGARDO B. GARCIA
JESUS G. GONZALES III
ANTONIO F. VELO, JR.
ABS-CBN EUROPE, LTD.
Managing Director
Director, Finance and Administration
Director, Sales and Marketing
Manager, Sales
JOSE C. NOLAN
STEPHEN B. MACION
NOEMI G. ARGUILLO
JEROME V. MEJIA
E-MONEYPLUS, INC. (ABS-CBN GLOBAL MONEY)
Managing Director
CANDIDO Q. SANTICO, JR.
Treasurer
ALFREDO G. CRISTOBAL, JR.
Head, Operations
ALEJANDRO F. SANTOS
70
ABS-CBN PUBLISHING, INC.
President
General Manager & Editorial Director
Chief Finance Officer & Director for Administration
Deputy Editorial Director
Director, Advertising Sales
Senior Brand Manager
Senior Brand Manager
Brand Manager, Metro Group
Brand Manager, Food & Working Mom
Brand Manager, Chalk & Pink
Director, Creative Services
Associate Editorial Director
Senior Manager, Production
Senior Manager, Circulation & Business Development
Senior Manager, Events Sales
Senior Manager, Billing & Assets Mgmt.
Senior Manager, Logistics
Senior Manager, Human Resources
Manager, Pre-Press Sales
Manager, Credit & Collection
Manager, General Accounting
Manager, Information Technology
Manager, Logistics - Systems Control
Manager, Circulation - Provincial Distribution
Editorial Operations Officer
ERNESTO L. LOPEZ
THELMA SIOSON-SAN JUAN
ANGELITA A. LARA
ANCILLA MERCADO ALCANTARA
MARGARET MARY A. DEFENSOR
RAFAEL A.S.G. ONGPIN
GABRIEL Z. EVARISTO
SARAH GRACE L. OCSON
PILUT C. MONTES
ALEXANDRA F. HENSON
HERNAN C. VILLAVECER
B. CARLO M. TADIAR
ANDY S. LIZARDO
ARLENE O. LAZARO
TERESA F. GARCIA
MARCUS C. ESTRELLA
ZENY O. BRANDARES
CECILIA P. ESTANISLAO
TERESITA F. BAYANI
ROWENA C. DOTE
AGNES M. FETALVERO
FRANCIS ALLAN M. BARANGAN
MARICEL C. PUSO
LAMBERTO M. ACUÑA
JOSEPH M. UY
CREATIVE PROGRAMS, INC.
Managing Director
Chief Finance Officer
Director, Programming
Senior Channel Manager, myx
Senior Technical Support Manager
Manager, Power Bundle Distribution
Junior Channel Manager, Lifestyle Network
OLIVIA FININA G. DE JESUS
EDGARDO A. MASANGKAY
RONALD M. ARGUELLES
ANDRE ALLAN B. ALVAREZ
MARIO G. TRILLANA
JOCELYN D. GO
STEPHANIE BENEDITO
PROSTAR, INC.
General Manager
GEORGE ANGELO G. PADOLINA
Chief Operating Officer (concurrent)
Managing Director, Film
Managing Director, Star Film Lab.
Managing Director, Radio-Television
Manager, Film Operations
Manager, Audio Operations
Musical Director, Music Creation
Manager, Video Operations
Manager, Human Resources
Manager, Video Marketing
Manager, New Media
Manager, Finance
RUBEN R. JIMENEZ
ALEJANDRO R. ESCANO, JR.
ERIC JOHN HAWTHORNE
ARNEDO C. LUCAS
MA. MARTA INES A. DAYRIT
ALBERT MICHAEL M. IDIOMA
JESUS CONSTANCIO Q. LASATEN
EDUARDO S. LINAO, JR.
JONATHAN LOUIS C. HERBOLARIO
CARMINA V. MARCELO
DANTON G. WIENEKE
ELY MIKE D. PINGOL
SUSANA B. MENDIOLA
SKY FILMS, INC.
Vice President & Managing Director
Director, Marketing & Acquisitions
LEONARDO P. KATIGBAK
MA. CECILIA F. IMPERIAL
STAR RECORDING, INC.
Vice President & Managing Director (concurrent)
Vice President, Sales & Distribution
AVP & Chief Finance Officer (Concurrent))
Director, Sales
Director, Warehouse & Logistics
Director, Artist & Repertoire
Manager, Finance
Manager, Special Sales
Manager, National Sales
Manager, Sales
Manager, Sales
Manager, Creative
ENRICO C. SANTOS
VILMA B. SELGA
BEVERLY S. FERNANDEZ
ESTRELLITA V. CASTRO
ANNABELLE M. REGALADO
NORMAN ALBERT V. SANTIAGO
SOCRATES C. VILLANUEVA
ARTHUR A. PABLICO
EDUARDO N. ROMAN
MA. CRISTINA R. BEROIN
ABEDITHA P. JAVELLANA
GERARDO A. SOLON
MATHEW A. ROSANES
STUDIO 23, INC.
Vice President & Managing Director (Concurrent)
Director, Creative On-Air
Chief Finance Officer (Concurrent)
Senior Manager, Admin. & Operations (Program Dept.)
Manager, Local Promotions (Creative Department)
Manager, Local Production (Program Department)
Manager, TV News Services (News Department)
LEONARDO P. KATIGBAK
NELSON EDISON M. AGUIFLOR
EDGARDO A. MASANGKAY
MARJORIE N. ESTACIO
DENNIS NOEL A. BALANGUE
RODORA S. GRANADA
VICENTE O. RODRIGUEZ
TV FOOD CHEFS, INC.
Assistant Vice President & Managing Director
Manager, Banquet
Manager, Executive Chef
MYRNA D. SEGISMUNDO
RAUL H. RAMOS
RUTH J. PADILLA
MIGUEL N. YADAO
ABS-CBN FOUNDATION, INC.
Managing Director
Chief Finance Officer
Director, Public Relations
Director, Human Resources
Program Director, Bantay Bata
Program Director, Bantay Kalikasan
Program Director, E-Media
Deputy Director, Bantay Bata
Production Manager, Educational Television
Manager, External Relations – AFI International
Creative Director, Bantay Bata Production
Project Development Manager, Bantay Bata
Manager, Direct Child Services Department, Bantay Bata
Manager, Children’s Village, Bantay Bata
Operations Manager, Bantay Kalikasan
IEC Manager, Bantay Kalikasan
Manager, BK Resource Mobilization
Program Development Manager, E-Media
Manager, Research and Teacher’s Training, E-Media
Manager, Events and Communication Services, E-Media
Manager, Technical Services, E-Media
Manager, Art Department, E-Media
Manager, Administrative Services
School Administrator, ABS-CBN Children’s Center
Manager, Accounting/Budget Department
Manager, Asset Management Department
REGINA PAZ L. LOPEZ
MARVEL K. TAN
DULCE F. BAYBAY
RENEE D. BAYANGOS
TINA M. PALMA
MARLO D. MENDOZA
ZENAIDA S. DIMALANTA
CARMINIA M. ARAGON
MA. ANGELES H. GONZALES
JOCELYN I. SAW
CESAR C. CELESTINO
FRANCILIZA T. VITTERBO
MARIE CHARMINIA M. IRANTA
MA. VICTORIA F. LIBAO
JOHN PAUL D. BALAYON
MA. ISABEL ANDREA D. BUNAO
JOANNA C. GILLADOGA
GERRY D. DE ASIS
DARLENE DOLLY A. CRUZ
JENNIFER V. CATIIS
CHRISTOPHER P. SIOCO
THERESA XCELSA ANN C. ESQUILLON
ARIEL O. DECENA
ERIKA G. DIGNOS
MARICAR B. ESTOLE
MARILYN S. CIPCON
VENCHITO C. AGAM
ABS-CBN BAYAN FOUNDATION, INC.
Executive Director
Support Services Head
Operations Head
Human Resource Development Head
Manager, Finance
Manager, Internal Controls
Manager, Operations
Manager, Research & Communications
RENO R. RAYEL
AGRIPINO PAUL R. GALVEZ, JR.
IRMA L. COSICO
EDITHA H. SANTIBAÑEZ
ROMEO E. MIRANDA
ESTELITA C. CATACUTAN
NIMROD E. DE LA PEÑA
SHERRY LOU A. SALAZAR
1
Retired effective 31 December 2003
Resigned effective 31 January 2004
3
Transferred to RNG effective February 2004
4
SVP for Strategic Planning effective 1 February 2004
2
corporate
addresses
ABS-CBN BROADCASTING CORPORATION
ABS-CBN Broadcast Center
Sgt. Esguerra Avenue corner Mother Ignacia Street,
Diliman, Quezon City 1103 Philippines
Trunk: (632) 924-4101 to 4122 • (632) 415-2272
Fax: (632) 431-9368
REGIONAL STATIONS
LUZON
ABS-CBN BAGUIO TV 3 • DZRR 103.1
Lower Basement, CAP Building,
Post Office Loop, Baguio City
Direct: (074) 443-6091• (074) 300-6091 local 6521, 6522
Fax: (074) 443-6091
ABS-CBN DAGUPAN TV 3• DWEC 94.3
ABS-CBN Broadcast Complex,
AB Fernandez East, Dagupan City
Direct: (075) 515-4458 • (075) 522-7056
Fax: (075) 523-4787
ABS-CBN ISABELA TV 2
3/F JECO Building,
Maharlika Hi-way, Santiago City, Isabela
Direct: (078) 682-5923 • (078) 682-3640 • (078) 682-3544
Fax: (078) 682-3640
ABS-CBN LAOAG TV 7 • DWEL 95.5
G/F Insular Life Building,
Balintawak St., Laoag City
Direct: (077) 773-1713 • (077) 771-5234 • (077) 773-1722
Fax: • (077) 773-1722
ABS-CBN LEGAZPI TV 4 • DWRD 93.9
ABS-CBN Compound,
Vel-Amor Subdivision, Legazpi City
Direct: (052) 480-0939 • (052) 480-1001 • (052) 480-1128
Fax: (052) 480-1730
ABS-CBN NAGA TV 11 • DWAC 93.5
ABS-CBN Broadcast Complex,
Panganiban Ave., Naga City
Direct: (054) 472-4675 • (054) 473-9733 • (054) 811-3323
Fax: (054) 473-2805
VISAYAS
ABS-CBN BACOLOD TV 4 • DYOO 101.5
26 Lacson St., Barangay 1,
Mandalagan, Bacolod City
Direct: (034) 434-2789 • (034) 434-2357 • (034) 709-9404
Fax: (034) 434-2358
ABS-CBN CEBU TV 3 • DYLS 97.1 • DYAB 1512
ABS-CBN Broadcast Complex
North Road, Jagobiao, Mandaue City
Direct: (032) 422-1950 to 59
Fax: (032) 422-1952
ABS-CBN DUMAGUETE TV 12
Hibbard Avenue,
Dumaguete City
Direct: (035) 225-8167 • (035) 422-1169
ABS-CBN ILOILO TV 4 • DYMC 91.1
Luna St., La Paz,
Iloilo City
Direct: (033) 320-9451 to 53 • (033) 508-6046
Fax: (033) 320-7423
ABS-CBN TACLOBAN DYTC 94.3
2/F RCPI Building,
Justice Romualdez St., Tacloban City
Direct: (053) 325-9541 • (053) 321-2917 • (053) 321-1811
(053) 321-1911 • (053) 321-3941
MINDANAO
ABS-CBN BUTUAN TV 11
3/F Bayantel Building
M. Calo St., Butuan City
Direct: (085) 342-9179 • (085) 342-8000 • (085) 341-4444
ABS-CBN CAGAYAN DE ORO TV 2 • DXEC 91.9
Greenhills Road, Barangay Bulua,
Cagayan De Oro City 9000
Direct: (08822) 737-777 • (08822) 735-759 • (08822) 737-909
Fax: (088) 737-910
ABS-CBN COTABATO TV 5 • DXPS 95.1
6th St., Don E. Sero, Rosary Heights Village,
Cotabato City
Direct: (064) 421-1933 • (064) 421-8418 • (064) 390-3367 to 68
ABS-CBN DAVAO TV 4 • DXRR 101.1 • DXAB 1296
ABS-CBN Broadcast Complex
Shrine Hills, Matina, Davao City
Direct: (082) 296-1911 to 17 • (082) 300-1027 • (082) 297-6224
Fax: (082) 299-1477
ABS-CBN GENERAL SANTOS TV 3 • DXBC 92.7
Bougainvilla St., Villegas Subdivision
Purok Malakas, General Santos City
Direct: (083) 301-0039 • (083) 301-7950 • (083) 553-3998
Fax: (083) 301-0038
ABS-CBN ILIGAN TV 4
6/F Elena Tower Inn, Tibanga Hi-way
Iligan City
Direct: (063) 492-0216
Fax: (063) 223-9730
ABS-CBN ZAMBOANGA TV 3 • DXFH 98.7
San Jose Road, Zamboanga City
Direct: (062) 993-1801 to 03 • (062) 991-3413 to 15 •
(062) 992-2595
PROVINCIAL SALES CENTERS
BATANGAS Sales Center TV 10
Unit 14-E, 2/F Caedo Commercial Center,
Calicanto, Batangas City
Direct: (043) 722-1898 • (043) 300-2800
Fax: (043) 722-1898
DAET Sales Center TV 23
Rooftop, TJ Bldg., Vinsons Avenue
Daet, Camarines Norte
Direct: (054) 440-1123
LUCENA Sales Center TV 36
Maharlika Highway,
Bgy. Kaunlaran Mayao, Lucena City
Direct: (042) 373-7632
OLONGAPO Sales Center TV 12
El Elyon Arcade & Café
2443 Rizal Avenue, Olongapo City
Direct: (044) 224-4449
TUGUEGARAO Sales Center TV 3
4/F Rios Building,
Taft St. corner Colleges Ave., Tuguegarao City
Direct: (078) 846-2480 • (078) 846-3316 • (078) 844-0995
ROXAS Sales Center TV 21
2706 Dayao St., Roxas City
Direct: (036) 621-2251
KORONADAL Sales Center TV 24
2/F Green Valley Building,
General Santos Drive, Koronadal, South Cotabato
Direct: (083) 228-9767
71
ABS-CBN SUBSIDIARIES & AFFILIATES
ABS-CBN CENTER FOR COMMUNICATION ARTS, INC.
6/F Design & Talent Center Building
ABS-CBN Braodcasting Complex
Eugenio Lopez Jr. Drive, Quezon City
Direct: (+632) 416-9366
Telefax: (+632) 415-3828
ABS-CBN FOUNDATION, INC.
Mother Ignacia Avenue cor Eugenio Lopez Jr. St.
Diliman, Quezon City, 1103, Philippines
Direct: (632) 411-0850 • (632) 411-0851
Trunk: (632) 924-4101 local 3783, 3779
Fax: (632) 921-4042
Website: www.abs-cbnfoundation.com
ABS-CBN BAYAN FOUNDATION, INC.
14-A Scout Borromeo St., Quezon City, 1103
Direct: (632) 372-8577 • (632) 372-0278 • (632) 411-9140
Fax: (632) 371-1427 • (632) 374-0282
E-mail: info@absbayan.pinoycentral.com
ABS-CBN FILM PRODUCTIONS, INC. (Star Cinema)
3/F, ABS-CBN Broadcast Center
Sgt. Esguerra Avenue, Barangay South Triangle
Quezon City 1103
Direct: (632) 924-4101
Trunk: (632) 415-2272 loc. 3999
Fax Number: (632) 413-8704
Web Address: www.abs-cbn.com/starcinema
Email Address: starcinema@abs.pinoycentral.com
STUDIO 23, INC.
3/F Main Building, ABS-CBN Broadcast Center,
Sgt. Esguerra Avenue cor Mo. Ignacia St. Diliman, Quezon City.
Direct:(632) 924-4101 to 4122 • (632) 415-2272 to 2282
Fax: (632) 412-1259
Email: studio23@abs.pinoycentral.com
TV FOOD CHEFS, INC.
14th Floor ELJCC Bldg. Eugenio Lopez Ave. Quezon City 1103
Trunk: (632) 415-2272 loc 2331/2334
Direct: (632) 411-1434
Fax: (632) 411-1564
ABS-CBN GLOBAL LIMITED
9/F ELJ Communications Center, Lopez Drive,
South Triangle, Quezon City
Trunk: (632) 415-2272
Fax: (632) 411-1168
Web Address: www.abs-cbn.com/international
ABS-CBN GLOBAL’S INTERNATIONAL OFFICES:
ABS-CBN INTERNATIONAL, INC.
Lopez Building, 859 Cowan Road, Burlingame, CA 94010
Direct: (650) 697-3700
Fax: (650) 697-3500
Web Address: www.tfc-na.com
9/F ELJ Communications Center
Mother Ignacia Avenue cor Eugenio Lopez Street,
South Triangle, Quezon City 1103
Trunk: (632) 415-2272 local 4109
Fax: (632) 415-8724
Web Address: www.abs-cbn.com
ABS-CBN MIDDLE EAST FZ-LLC
( Head Office ) Office G08, Building 6,
P.O Box 502087, Dubai Media City, Dubai, U.A.E.
Direct: (+9714) 390-2180
Fax: (+9714)390-8021
Email: tfc@abs-cbnme.com
SARIMANOK NEWS NETWORK, INC. (ANC)
ABS-CBN Broadcast Center,
Trunk: (632) 4152272 local 5322, 5316
Fax: (632) 410-8847 • (632) 412-4945
JEDDAH ABS-CBN Middle East
SDD Compound, Dallah Street
P.O. Box 430 Jeddah 21411
Tel:(+9662) 619-4723, 619-4725, 619-4727, 6194729
Fax: (+9662) 670-5764, 670-5819
ABS-CBN PUBLISHING, INC.
4/F ELJ Communications Center,
Mother Ignacia Ave. corner Eugenio Lopez Jr. St
Diliman, Quezon City 1103
Trunk: (+632) 415-2272
RIYADH ABS-CBN Middle East
3/F, Dallah Albarakah Bldg., P.O. Box 1438
King Fahad Road, Riyadh 11431
Tel: (+9661) 217-6040 Ext 1307-1309
Fax: (+9661) 217-0496 Ext 1308
CREATIVE PROGRAMS, INC.
10/F ELJ Communications Center,
Eugenio Lopez Drive, 1103 Quezon City
Trunk: (632) 415-2272
DAMMAM ABS-CBN Middle East
Dallah Compound, Dammam-Al Khobar Highway
P.O. Box 6404, Dammam 31442
Tel: (+9663) 857-7562, 8574362, 8587447
Fax: (+9663) 858-7227
E-MONEY PLUS, INC.
G/F North Loop, ELJ Communication Center
9501 Mo. Ignacia St., South Triangle, Q.C.
Trunk: (632) 415-2272 Local 2366/2373/2374
Direct: (632) 411-9116
Fax: (632) 410-48-07
ABS-CBN EUROPE, LTD.
109 Gloucester Road, South Kensington,
SW7 4SS London
Tel. No: +44 (0) 20 7341 4447
Fax No: +44 (0) 20 7341 4436
PROFESSIONAL SERVICES FOR TELEVISION & RADIO INC.
ABS-CBN Broadcast Center
Sgt. Esguerra Ave. cor. Mo. Ignacia St.
Diliman, Quezon City
Trunk: (+632) 415-2272
TRANSFER AGENT
SECURITIES TRANSFER SERVICES, INC.
4/F, Benpres Building, Exchange Road
cor Meralco Avenue, Ortigas Center
1600 City of Pasig, Metro Manila
282 Tomas Morato Avenue, Diliman, Quezon City 1100
Direct: (632) 414-3456 (Film Division)
(632) 812-5851 • (632) 812-7866 (RTV Division)
(632) 894-1324-25 (Star Film Lab.)
Fax: (632) 414-6838 • (632) 414-6841 (Film Division)
(632) 819-7379 • (632) 894-5633 • (632) 818-4511 (RTV
Division)(632) 893-4786 (Star Film Laboratory)
Web Address: www.roadrunner.com.ph
LEGAL COUNSEL
QUIASON, MAKALINTAL, BAROT, TORRES & IBARRA
21/F, Robinsons- Equitable Tower
4 ADB Avenue cor Poveda St. Ortigas Center
1605 City of Pasig, Metro Manila
SKY FILMS, INC.
18 Eugenio Lopez Street, South Triangle Quezon City
Direct: 374-7920 to 25
Fax : 374-7922
72
STAR RECORDING, INC.
2/F ABS-CBN Broadcast Center,
Email: starrec@abs.pinoycentral.com
EXTERNAL AUDITOR
SYCIP, GORRES, VELAYO & Co.
6750 Ayala Avenue Makati City
LIST OF BANKS & FINANCIAL INSTITUTIONS
BANCO SANTANDER PHILS.,INC.
27/F Tower One & Exchange Plaza
Ayala Avenue cor Paseo de Roxas Makati City
BANK OF AMERICA
27/F Philamlife Tower
8767 Paseo De Roxas Makati City
PENTA CAPITAL INVESTMENT CORPORATION
10/F, ACT Tower
135 Sen. Gil. J. Puyat Ave., Salcedo Village
Makati City
PHILIPPINE COMMERCIAL CAPITAL INC.
PCCI Bldg., 118 Alfaro Street
Salcedo Village Makati City
BANK OF COMMERCE
10/F Bankers Center
6764 Ayala Avenue, Makati City
RIZAL COMMERCIAL BANKING CORP.
11/F, Yuchengco Tower, RCBC Plaza,
6819 Ayala Ave. cor Gil Puyat Ave.
Makati City
BANK OF THE PHILIPPINE ISLANDS
7/F, BPI Building Ayala Avenue cor Paseo De Roxas
Makati City
SECURITY BANK
Security Bank Centre
BPI CAPITAL CORPORATION
8/F, BPI Building.
Ayala Avenue cor Paseo De Roxas
Makati City
STANDARD CHARTERED BANK
BNP PARIBAS
30/F, Philamlife Tower
CITIBANK N. A.
9/F, Citibank Tower
CHINATRUST (PHILS.) COMMERCIAL BANK CORP.
3/F, Tower 1 & Exchange Plaza
Ayala Avenue cor Paseo De Roxas Makati City
DEVELOPMENT BANK OF THE PHILS.
5/F, DBP Building
Sen. Gil Puyat Ave. cor Makati Ave
Makati City
EQUITABLE - PCIBANK
Equitable PCI Bank Tower l
Makati Ave. cor H.V. Dela Costa St.
Makati City
EQUITABLE - PCIBANK-TRUST BANKING
Equitable PCI Bank Tower l
Makati Ave. cor H.V. Dela Costa St. Makati City
INSULAR LIFE ASSURANCE CO. LTD.
29/F Insular Life Corporate Center
Commerce Avenue, Filinvest Corporate City
Alabang
INSULAR INVESTMENTS AND TRUST COMPANY
10/F Insular Life Building
LANDBANK OF THE PHILIPPINES - TRUST BANKING GROUP
1598 MH Del Pilar Street, cor Quintos Malate
METROPOLITAN BANK AND TRUST COMPANY
2/F,Metrobank Plaza
Sen. Gil Puyat Makati Avenue
Makati City
MIZUHO CORPORATE BANK, Ltd.
26/F, Citibank Tower
Valero St. Corner Villar St.
Salcedo Village, Makati City
MULTINATIONAL INVESTMENT BANCORPORATION
41/F, Rufino Tower
Ayala Avenue Cor. Paseo De Roxas
Makati City
73
For further information about our company,
please contact the following:
INVESTOR RELATIONS
Mr RANDOLPH T. ESTRELLADO
Ph (632) 924.4101 ext 4312
Fax (632) 431.9368
e-mail: randy_estrellado@abs.pinoycentral.com
Ms CYBELE MARTHA C. LUCERO-REGALADO
Ph (632) 924.4101 ext 4526
Fax (632) 431.9368
e-mail: cybele_lucero@abs.pinoycentral.com
CORPORATE AFFAIRS & PUBLIC RELATIONS
Ms MA. LOURDES LILIA K. ESPINOSA-MANALASTAS
Ph (632) 415.2272 ext 4377
Fax (632)
e-mail: maloli_manalastas@abs.pinoycentral.com
Ms LEAH C. SALTERIO
Ph (632) 415.2272 ext 4378
e-mail: leah_salterio@abs.pinoycentral.com
The 2003 ABS-CBN ANNUAL REPORT
STEERING COMMITTEE
Randolph T. Estrellado • Ma. Carminda M. de Leon • Leah C. Salterio
Marie Melanie A. Adriano-Almadin • An Mercado-Alcantara
Cybele Martha C. Lucero-Regalado • Danilo C. Batallones
Carmelo B. Saliendra • Edgardo D. Ramos • Roger R. Villon
OVERALL COORDINATION
Cybele Martha C. Lucero-Regalado
LAY-OUT & PRE-PRESS PRODUCTION
ABS-CBN Creative Communications Management
PRODUCER
Marie Melanie A. Adriano-Almadin
CREATIVE DIRECTORS
Ma. Carminda M. de Leon • An Mercado-Alcantara
CONTRIBUTING WRITERS
Dedet Reyes-Panabi • Randolph T. Estrellado
Raul Rodrigo • Ma. Carmina T. Mosura
Marie Melanie A. Adriano-Almadin
GRAPHIC DESIGNERS
Roger C. Villon • Danilo C. Batallones
Carmelo B. Saliendra • Edgardo D. Ramos
ASSOCIATE PRODUCERS
Cybele Martha C. Lucero-Regalado • Cristina Ong
Cesar Galang • Sheryl B. Ramos • Danie Rose Sedilla-Cruz
Sunshine A. Laserna • Marla Silangan
PHOTOGRAPHERS
Mandy Navasero • Jovel Lorenzo
RESEARCHERS
Full Circle Communications
PRINT PRODUCTION
Edgardo D. Ramos
COLOR SEPARATION
PRINTER
House Printers
ACKNOWLEDGMENT
All information in this Annual Report
is correct to the best of our knowledge,
but does not constitute an assumption of liability
or a guarantee of particular characteristics.
This publication may not be reprinted in its entirety
or in part without the company’s permission.
74

apercentage of advertising revenue from ABS

Transcription

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