ABS-CBN TRIMMING DOWN OPERATIONS

Quezon City, April 16, 2003 -- Beleaguered broadcasting giant ABS-CBN 
Broadcasting Corp. plans to further trim its operational cost after having 
closed six losing subsidiaries in 2002.

ABS-CBN chief finance officer Randolph T. Estrellado said that while all 
remaining subsidiaries have been annexed into their core businesses, the 
company is assessing these firms' operations to determine what areas can be 
whittled down to ensure leaner and tighter organizations.

"Right now, we have to think about cutting operational costs because some 
of our subsidiaries like the ABS-CBN News Channel (ANC) and foreign films 
distributor Skyfilms are still losing money," said Estrellado.

Last year, ABS-CBN terminated operations of six of its losing subsidiaries: 
ABS-CBN Consumer Products, Shopping Network Inc., Cinemagica, ABS-CBN 
Hongkong Club, ABS-CBN Europa Societa Per Azioni and Pinoy Auctions.

As part of its program to cut costs, ABS-CBN is capping its capital 
expenditures this year to P1.5 billion, including the budget for 
international expansion.

The company earlier disclosed that for the first quarter of 2003, airtime 
revenues grew by 31 percent to P2.16 billion from the same period last 
year. Consolidated net revenues increased by six percent to P10.9 billion 
mainly due to the strong recovery of the total advertising spending by the 
second half of 2002.

The company, however, disclosed that it experienced pressure on its 
operating margins as its expenses grew faster than revenues. Non-cash 
charges grew by 44 percent as the company began to depreciate its new 
broadcast complex.

On the other hand, cash expenses grew by 16 percent due to demands on 
production costs dictated by a more competitive broadcast environment. As a 
result, its income from operation fell by 42 percent to P1.66 billion.

Aside from cost-shaving plans, Estrellado said ABS-CBN this year also plans 
to list its international holding unit, ABS Global, in the Singapore Stock 
Exchange in the next five years.

Estrellado said that while the company would prefer to do the initial 
public offering much sooner, ABS Global is still not financially ready to 
engage in such a venture at this point. (By Rocel C. Felix, Star)

Reported by: Sol Jose Vanzi

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