PSE Circular for Brokers No. 605-98

April 6, 1998 PSE CIRCULAR FOR BROKERS NO. 605-98 For Immediate Release Refer to Butch Raquel Corporate Affairs Director Prisco Ponce Vice President for Finance Tel no. 411-1163/924-4101 loc. 4382 924-4101 loc. 4576 Date April 3, 1998 ABS-CBN's gross revenues up by 26 . 44% ABS-CBN Broadcasting's gross revenues for 1997 ending December 31 reached P5.645 billion, representing a 26.44 percent increase over the P4.464 billion registered in the same period in 1996. On the other hand, net income rose 13.97 percent from 1996's P1.53 billion to P1.744 billion. Resulting earnings per share likewise increased from P1.96 to P2.24 Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 16.66 percent from P2.566 billion in 1996 to P2.993 billion in 1997. ABS-CBN Chairman and CEO Eugenio Lopez III said that the company's EBITDA is again being highlighted because it provides a better understanding of how the company actually performed. LLphil "All over the world, broadcasting companies are valued on the basis of EBITDA per share. This rewards management for minimizing their taxes. Conversely, it prevents management from pumping up net income by altering depreciation or amortization policies." Lopez added. The network's total assets as of December 31 stood at P11.259 billion, up by 45.21 percent from the 1996 total of P7.753 billion. Radio and TV operations remain the principal activities of the network, but ABS-CBN remains optimistic about its diversification ventures which include film production, theater operations, recording, a UHF channel international telecoms, licensing and merchandising, among others. (Consolidated) AS OF DECEMBER 31, 1997 (In Million Pesos Except Earnings & Book Value per Share and Current Ratio) 1997 VS INCOME STATEMENT DATA 1996 1997 1996 GROSS REVENUE 4,464.40 5,644.86 25.44% NET REVENUE 3,931.73 5,149.94 30.98% OPERATING INCOME 1,786.88 2,291.67 28.25% NET INCOME 1,530.11 1,743.93 13.97% EBITDA 2,565.66 2,993.18 16.66% INCOME TO GROSS REVENUE RATIO 34.27 30.89 -9.86% EARNINGS PER SHARE 1.96 2.24 13.97% EBITDA PER SHARE 3.29 3.84 16.66% 1997 VS BALANCE SHEET DATA 1996 1997 1996 CURRENT ASSETS 3,491.17 4,397.86 25.97% TOTAL ASSETS 7,753.47 11,258.82 45.21% CURRENT LIABILITIES 1,514.96 2,450.06 61.72% TOTAL LIABILITIES 2,741.93 4,745.18 73.06% STOCKHOLDERS' EQUITY 5,011.54 6,513.64 29.97% DEBT TO EQUITY RATIO 54.71 72.85 33.15% BOOK VALUE PER SHARE 6.43 8.36 29.97% CURRENT RATIO 2.30 1.79 -22.11% Notes: 1.) BVS & EPS are based on 779.583,312 shares issued as of May 31, 1996. (Inclusive already of the 50% stock dividend declared in May, 1996.)