Noncurrent Assets
Property and equipment 21,798,053 20,572,543 18,535,905 1,225,510 5.96 2,036,638 10.99
Program rights and other intangible assets - net
of current portion 7,041,430 6,598,402 5,429,192 443,028 6.71 1,169,210 21.54
Goodwill 5,301,526 5,289,956 5,288,350 11,570 0.22 1,606 0.03
Available-for-sale (AFS) investments 275,096 242,368 219,191 32,728 13.50 (48,823) (16.77)
Investment properties 200,801 198,734 196,916 2,067 1.04 1,818 0.92
Investments in associates and joint ventures 523,733 199,874 166,591 323,859 162.03 33,283 19.98
Deferred tax assets (Note 29) 2,891,139 2,858,187 2,192,429 32,952 1.15 665,758 30.37
Other noncurrent assets 2,154,138 2,468,564 2,580,033 (314,426) (12.74) (111,469) (4.32)
Total Noncurrent Assets 40,185,916 38,428,628 34,608,607 1,757,288 4.57 3,820,021 11.04
Dec. 31
CHANGES
2015 2014 2013 2015-2014 2014-2013
Amount % Amount %
Equity Attributable to Equity Holders of the
Parent Company
Capital stock:
Common 872,124 872,124 872,124 0 0.00 0 0.00
Preferred 200,000 200,000 200,000 0 0.00 0 0.00
Additional paid-in capital 4,711,050 4,495,050 4,495,050 216,000 4.81 0 0.00
Exchange differences on translation of foreign
-466,159 -456,773 -270,632 2.05
operations (9,386) (186,141) 68.78
Unrealized gain on AFS investments 176,009 143,281 121,766 32,728 22.84 21,515 17.67
Share-based payment plan 34,349 34,349 34,349 0 0.00 0 0.00
Retained earnings 23,922,847 21,363,395 19,817,957 2,559,452 11.98 1,545,438 7.80
Treasury shares and Philippine depository
receipts convertible to common shares -1,638,719 -1,264,096 -1,164,146 (374,623) 29.64 (99,950) 8.59
Equity attributable to Equity Holders of the
27,811,501
Parent 25,387,330 24,106,468 2,424,171 9.55 1,280,862 5.31
Noncontrolling Interests 903,825 1,487,498 1,816,289 (583,673) (39.24) (328,791) (18.10)
Total Equity 28,715,326 26,874,828 25,922,757 1,840,498 6.85 952,071 3.67
TOTAL LIABILITIES AND EQUITY 70,424,104 67,236,820 57,992,757 3,187,284 4.74 9,244,063 15.94
CHANGE
2015 2014 2013 2013-2014 2014-2015
Amount % Amount %
26,874,82 19,421,83
Beginning Balance 25,922,757
8 1
Net income (loss) 2,545,134 2,030,136 2,028,347 1,789 0.09 514,998 25.37
Other comprehensive -
185,332 -499,393 810,137 -1,309,530 684,725 -137.11
income (loss) 161.64
Total comprehensive income
2,730,466 1,530,743 2,838,484 -1,307,741 -46.07 1,199,723 78.38
(loss)
Remeasurement gain on
defined benefit plan
0 0.00 0 0.00
transferred to retained
earnings
0 0.00 0 0.00
Benefit plan transferred to
- _ 0 0.00 0 0.00
retained earnings
0 0.00 0 0.00
Cash Dividends declared -514,352 -514,600 0 -514,600 0.00 248 -0.05
Acquisition of PDRs and
-375,616 -99,950 -99,950 0.00 -275,666 275.80
common shares
Reversal of appropriation
0 0.00 0 0.00
of retained earnings
Appropriation of retained
0 0.00 0 0.00
earnings
-
Share-based payment plan 5,397 -5,397 0 0.00
100.00
-
Issuance of common stock 3,939,501 -3,939,501 0 0.00
100.00
-
Issuance of preferred stock 200,000 -200,000 0 0.00
100.00
Decrease in noncontrolling -
0 0 -185,893 185,893 0 0.00
interests 100.00
Additional investment 0 35,878 0 35,878 0.00 -35,878 -100.00
28,715,32 25,922,75
Ending Balance 26,874,828
6 7
ABS-CBN CORPORATION AND SUBSIDIARIES
COMPARATIVE STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED DEC. 31 2015,2014,2013
HORIZONTAL ANALYSIS
1Charts and Tables presented in this analysis are elaborately presented in APPENDIX A
2013 2014 2015
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
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Ad
A. Statement of Income Analysis
Based on the Income Statement, the gross revenue has showcased a quite favorable result for it
has increased by .50% from 2013-2014. However, despite of such increase, the other factors that
comprises the gross revenuewhich are Advertising Revenue, Sale of Goods, and the other Revenue, has
decreased by 2.34%, 39.30%, and 22.64% respectively. Due to the decrease of majority of the line items,
the company should be cautious and come up with an immediate optimal solution to prevent the possible
continuous decline of the mentioned sources of revenues.
During 2014-2015, there has been a huge increase in the gross revenues which is 14.11%. This
increase was due to great performances of the local and international broadcast groups and was supported
by Sky Cable. It can be observed that the revenues that declined during the previous period have already
increased. Due to that factor, the trend between 2014-2015 as compared to 2013-2014 was a better
performance.
Net Income
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
2013 2014 2015
Net Income
There has been a minimal
increase in net income from 2013-2014, which was only .09%. This was because of the decrease of
majority of the revenuesAdvertising, Sale of Goods, and other revenue and the increase of majority of
the expensesProduction, Cost of Services, Cost of Sales, and General and Administrative. This kind of
trend should not be maintained by the entity and should come up with a solution that would result to
cutting down their expenses and earning more revenues. During the same period, there has been an
increase in the interest income and other income by 63.04% and 27.33% respectively, and contributed to
the slight increase of the net income.
The net income during 2014-2015 has increased by 25.37%. This is an immense increase if it is
going to be compared to the previous periods increase. This increase was caused by the increase of the
revenues due to the excellent performance of the broadcasting groups in the company as well as the
proceeds that the company received for the advertisement because of the presidential elections.
Current Liabilities
17,000,000
Current
16,000,000
Liabilities
15,000,000
14,000,000
13,000,000
B. 2013 2014 2015
Current Assets
35,000,000
30,000,000 Current Assets
25,000,000
20,000,000
2013 2014 2015 Short-Term Solvency Analysis
During 2013-2014, the percentage of the increase in the current assets, which is 23.20%, is larger than the
increase in the current liabilities, which is 4.47%. This result is favorable on the part of the company
because it may pertain that the company has ample current assets in order to meet their currently maturing
obligations.
During 2014-2015, there has been and increase with regards to the percentage in the total of the current
assets, which is 4.96%. However, the total current liability also had an increase of 15.86%. It can be
observed that the percentage of the current liabilities now is much larger than of the percentage of the
increase of the total assets. This type of result would be unfavorable as to the short-term solvency of the
company because the company is now exposed to the risk as to the ability of the entity to meet those
currently maturing obligations, with regards if their current assets can do meet those obligations.
Non Current Liabilities
27,000,000
25,000,000 Non Current
23,000,000 Liabilities
21,000,000
19,000,000
17,000,000
C. 2013 2014 2015
During 2013-2014, the total non-current assets increased by 11.04% because of the acquisition of the
property, plant, and equipment, and program rights despite of the decreases of the AFS investments and
the other non-current assets. The decrease in the AFS investments was caused by the sale of the said
investments, whereas the decrease in the other non-current assets was caused by the provision for
unrecoverable tax credits and the amortization for deferred charges.
The non-current liabilities have increased by 41.05%. The increase was primarily caused by the interest-
bearing loans and borrowings. So therefore, the entity should be prepared enough as early as that period
in order to meet those obligations. The entity should be cautious because more debts can expose the firm
to a huge risk where they could not meet their contractual debt payments over the long run
During 2014-2015, the total non-current asset increased by 4.57%. It may be a minimal increase if it were
to be compared to the previous trend. However, it can be noted that most of the items that lies under the
total non-current assets have increased and it may be beneficial for the company as a result, especially in
the long run because they may earn income from those investments.
The non-current liabilities have decreased by 3.25% and it was probably due to the factor that the long-
term obligations are starting to mature little by little and thus currently maturing and is to be settled by the
entity
Dec. 31
ASSETS 2015 2014 2013
Amount % Amount % Amount %
Current Assets
Cash and cash equivalents 11,537,559 16.38% 13,238,377 19.69% 10,616,855 18.31%
Short-term investments 1,617,546 2.30% 0.00% - 0.00%
Trade and other receivables 11,561,147 16.42% 10,717,317 15.94% 8,333,761 14.37%
Inventories 672,501 0.95% 544,362 0.81% 265,221 0.46%
Program rights and other intangible assets 959,411 1.36% 1,183,184 1.76% 1,385,972 2.39%
Other current assets 3,890,024 5.52% 3,124,952 4.65% 2,781,665 4.80%
Total Current Assets 30,238,188 42.94% 28,808,192 42.85% 23,383,474 40.32%
Noncurrent Assets
Property and equipment 21,798,053 30.95% 20,572,543 30.60% 18,535,905 31.96%
Program rights and other intangible assets -
net of current portion 7,041,430 10.00% 6,598,402 9.81% 5,429,192 9.36%
Goodwill 5,301,526 7.53% 5,289,956 7.87% 5,288,350 9.12%
Available-for-sale (AFS) investments 275,096 0.39% 242,368 0.36% 219,191 0.38%
Investment properties 200,801 0.29% 198,734 0.30% 196,916 0.34%
Investments in associates and joint ventures 523,733 0.74% 199,874 0.30% 166,591 0.29%
Deferred tax assets (Note 29) 2,891,139 4.11% 2,858,187 4.25% 2,192,429 3.78%
Other noncurrent assets 2,154,138 3.06% 2,468,564 3.67% 2,580,033 4.45%
Total Noncurrent Assets 40,185,916 57.06% 38,428,628 57.15% 34,608,607 59.68%
100.00 100.00 100.00
TOTAL ASSETS 70,424,104 % 67,236,820 % 57,992,081 %
Dec. 31
2015 2014 2013
Equity Attributable to Equity Holders of Amount % Amount % Amount %
the Parent Company
Capital stock:
Common 872,124 1.24% 872,124 1.30% 872,124 1.50%
Preferred 200,000 0.28% 200,000 0.30% 200,000 0.34%
Additional paid-in capital 4,711,050 6.69% 4,495,050 6.69% 4,495,050 7.75%
Exchange differences on translation of
-466,159 -456,773 -270,632
foreign operations -0.66% -0.68% -0.47%
Unrealized gain on AFS investments 176,009 0.25% 143,281 0.21% 121,766 0.21%
Share-based payment plan 34,349 0.05% 34,349 0.05% 34,349 0.06%
Retained earnings 23,922,847 33.97% 21,363,395 31.77% 19,817,957 34.17%
Treasury shares and Philippine depository
receipts convertible to common shares -1,638,719 -2.33% -1,264,096 -1.88% -1,164,146 -2.01%
Equity attributable to Equity Holders of the
27,811,501
Parent 39.49% 25,387,330 37.76% 24,106,468 41.57%
Noncontrolling Interests 903,825 1.28% 1,487,498 2.21% 1,816,289 3.13%
Total Equity 28,715,326 40.77% 26,874,828 39.97% 25,922,757 44.70%
100.00 100.00 100.00
TOTAL LIABILITIES AND EQUITY 70,424,104
% 67,236,820 % 57,992,757 %
2 Charts and Tables presented in this analysis are elaborately presented in APPENDIX A
B. Long-Term Financial Asset Analysis
It can be noted that non-current portion of the company is much higher than that of its current where
current assets only takes 42.93% while non-current assets takes 57.07% of total assets which is a good
indicator that the business is in a well-balanced financial standing for the year 2015. Also, it is noticed
that non-current portion of assets in decreasing compared to previous years due to decreases in property
and equipment, goodwill, investment properties and other noncurrent assets.
As a business concerning to television and
radio services, it is shown that property and
equipment is of vital asset to the company
and such percentage as shown in the
financial statements indicates that
proportion of property and equipment is of
normal condition in the industry in which
the company is in. It can also be assessed
that company has 10% program rights and
other intangible assets, which is increasing
over the years, in proportion to the total
assets of the company. This signifies that
company may have different rights to
variety of media coverage which is a good
standing for the company for it may be
useful for future operations and acquisition
of future customers. In addition, though
business non-current assets have been
decreasing, investment in associates and
joint venture has been increasing
exponentially showing that business are
entering to contracts of business ventures to
gain more financial wealth and relationship
with other companies.
Also, based on the accounts of total revenues, it is seen that advertising revenue has the highest
proportion of the accounts which is 55.55%, showing that such proportion is of appropriate for the
company for its focus is on television services and other media services. Also, except from advertising
revenues, the company is also seen from gaining income from other services which gives the company
39.57%. Though the company rely on services on gaining profit, it is also evident that sale of goods is
increasing over the past years showing that company management has efficiently increased efforts on
selling of products and may indicate effective management of prices of goods and may also mean increase
of customers over the years. Plus, net income has been increasing due to the gain of foreign exchange
gain in which this account has been indicating a loss over the past years but now, the company has gained
revenue from foreign currencies. Overall, it can be assessed that net income has been increasing over the
years showing efficient operation on sales of the company.
D.3 RATIO ANALYSIS
*Ratio formulas are enumerated elaborately in APPENDIX B: Summary of most commonly used ratios,
their formulas and basic significance which will also show the relevant notes explaining the use of the
enumerated ratios.
The following analysis is based on thousand PHP and ratios are rounded off to the nearest hundredths,
showing the different financial condition of the company in terms of Solvency, Liquidity, Profitability,
Leverage, Management Efficiency and other relevant information that may be of material use to the users
of the financial statements:
2. Current Ratio
2015 2014 2013
Formula: Compt. Ratio Compt. Ratio Compt. Ratio
Cash+Marketable Sec.+Cash
flow from operating activities 20,723,467 1.29 18,070,968 1.30 18,671,915 1.40
Total Current Liabilities 16,121,763 13,915,190 13,319,554
It is quite evident
that the 2015 liquidity standing of the company has decreased since the year 2014 but has increased
overall compared to the year 2013. Such declining tendency from the year 2014-2015 could indicate a
deteriorating financial condition because it can be assessed that current liabilities have been increasing
over the years because of an upward tendency of trade and other payables of the company as discussed in
the later analysis. Also, such tendency may be the result of the increase in both receivables and inventory
of the company which may indicate a more fluid state of liquidity condition for the company, meaning the
company has more assets to meet its current obligations to other companies.
This can be interpreted that still, the company has good financial condition for the business has enough
cash and other assets accounts for this alone can still satisfy financial obligations of the business even
though, yet again, current liabilities have been increasing exponentially for the past years. This may also
indicate that the company can still meet obligations without depending heavily on inventory of the
company since such an account is not an immediate source of cash and may not be saleable in times of
economic stress.
It is evident that the company is a highly liquid state not only due to the indicators of the current ratio and
quick ratio of the company but also to the fact that the company has sufficient and significant amount of
cash and other highly liquid assets which may indicate that the company has a good credit position which
may be of an advantage for the company for it has financial prospects to satisfy company obligations.
In summary, the company has enough liquid reserve available to satisfy contingencies and uncertainties
and has a high working capital balance in cases when the entity is unable to borrow on short notice and
also indicating has good short-term solvency and liquidity which means the company has the capacity to
meet current commitments in proportion to the available assets of the company.
B. Asset Activity and Management Efficiency Ratios
1. Trade Receivable turnover
2015 2014 2013
Formula: Compt. Result Compt. Result Compt. Result
365 days 365 days 106.22 365 days 103.65 365 days 91.38
Receivable Turnover 3.44 days 3.52 days 3.99 days
3. Inventory turnover
2015 2014 2013
Formula: Compt. Result Compt. Result Compt. Result
365 days 365 days 9.69 365 days 7.29 365 days 4.26
Inventory Turnover 37.65 days 50.04 days 85.58 days
5. Working Capital turnover ratio
2015 2014 2013
Formula: Compt. Ratio Compt. Ratio Compt. Ratio
6. Asset Turnover
2015 2014 2013
Formula: Compt. Result Compt. Result Compt. Result
2. Equity Ratio
2015 2014 2013
Formula: Compt. Ratio Compt. Ratio Compt. Ratio
3. Asset-to-equity ratio
2015 2014 2013
Formula: Compt. Ratio Compt. Ratio Compt. Ratio
D. Profitability Ratios
1. Gross Profit Margin
2015 2014 2013
Formula: Compt. Result Compt. Result Compt. Result
Cash Flow from Operating Actv. 7,568,362 19.77% 4,832,591 14.41 8,055,060 24.13
Net Revenues 38,278,115 33,543,628 % 33,377,904 %
4. Dividend Payout
2015 2014 2013
Formula: Compt. Result Compt. Ratio Compt. Ratio
5. Dividend Yield
2015 2014 2013
Formula: Compt. Result Compt. Ratio Compt. Ratio