ABS-CBN Corporation Quarterly Report For Period Ended June 30, 2014

ABS-CBN CORPORATION
QUARTERLY REPORT
PART I - FINANCIAL INFORMATION

1. Managements Discussion and Analysis of Financial Condition and Results of Operations
2. Financial Statements
2.1 Consolidated Statements of Financial Position
2.2 Consolidated Statements of Income
2.3 Consolidated Statements of Comprehensive Income
2.4 Consolidated Statements of Changes in Equity
2.5 Consolidated Statements of Cash Flows
2.6 Notes to Financial Statements
2.6.1 Business Segment and Geographical Segment Results (Note 5)
2.6.2 Rollforward of Property and Equipment (Note 10)
PART II - OTHER FINANCIAL INFORMATION
EXHIBIT 1 Aging of Accounts Receivables
SIGNATURES
PART I FINANCIAL INFORMATION

1.
MANAGEMENTS DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS

OF OPERATIONS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014
The following is a discussion and analysis of ABS-CBN Corporation and Subsidiaries (ABS-CBN or the
Company) financial performance for the six-month period ended June 30, 2014 and 2013.
The table below summarizes the results of operations for the first half of 2014 and 2013.
1H 2014
(Amounts in million Pesos)

Consolidated Revenues
Advertising Revenues
Consumer Sales
Sale of Services
Sale of Goods
Others
Costs and Expenses
Production Costs
Cost of Sales and Services
General and Administrative Expenses (GAEX)
Financial Costs - net
Equity in Net Earnings of Associates and Joint Ventures
Other Income - net
Net Income
EBITDA
P16,378
8,819
7,559
7,232
212
115
15,092
5,600
4,698
4,794
420
(3)
(217)
P995
P3,430
1H 2013
P17,178
10,213
6,965
6,690
191
84
15,145
5,826
4,397
4,922
489
(238)
P1,291
P4,130
Variance
Amount
(P800)
(1,394)
594
542
21
31
(53)
(226)
301
(128)
(69)
(3)
20
(P296)
(P700)
%
-4.7
-13.6
8.5
8.1
11.0
36.9
-0.3
-3.9
6.8
-2.6
-14.1
100.0
-8.8
-22.9
-16.9
For the six-month period ended June 30, 2014, ABS-CBN generated consolidated revenues of P16.378 billion
from advertising and consumer sales, P800 million or 4.7% lower year-on-year. Removing the impact of
election-related revenues, consolidated revenues grew by 3.0%.
Advertising revenues decreased by P1.394 billion or 13.6% year-on-year. Excluding impact of election-related
advertisements in previous year, advertising revenues is down by merely 1.2%.
On the other hand, consumer sales is up by 8.5% resulting from strong performance of movies released both
locally and internationally.
Comparative revenue mix is as follows:
Advertising revenues
Consumer sales
2013
57%
43%
2013*
55%
45%
1H 2013
59%
41%
1H 2014
54%
46%
*Excluding election related revenues
Consolidated Costs and Expenses

Direct costs and expenses amounted to P15.092 billion, or a 0.3% decrease year-on-year.
Production costs declined by P226 million or 3.9% to P5.600 billion. Personnel expenses and talent fees
which comprised 56% of total production costs is down by 2.3% year-on-year. Other significant
components of production costs are facilities-related and set requirement expenses which drop by 12% and
22%, respectively.
Cost of sales and services increased by P301 million or 6.8% to P4.698 billion. Parallel to increase in
number of subscribers coupled with foreign exchange losses, Sky Cables programming and bandwidth
costs increased compared to prior year. And with the increasing number of movies shown overseas,
Globals corresponding theatrical costs increased as well.
GAEX declined by 2.6% or P128 million. Ninety percent (90%) of GAEX is cash which declined by 2%
due to continuous effort of the Company to manage its costs.
Net Income and EBITDA
The Company generated almost P1 billion net income for the first half of the year. Net income decreased by
22.9% compared to P1.291 billion in previous year. EBITDA reached P3.430 billion or 16.9% decline year-onyear. Without the election-related revenues and expenses, net income and EBITDA both posted an increase of
43.6% and 4.7%, respectively.
2nd Quarter Results

Advertising Revenues
Consumer Sales
Sale of Services
Sale of Goods
Others
Costs and Expenses
Production Costs
Cost of Sales and Services
GAEX
Financial Costs - net
Equity in Net Earnings of
Associates and Joint Ventures
Other Income - net
Net Income
EBITDA
vs 1Q 2014
Amount
%
vs 2Q 2013
Amount
%
1Q 2014
2Q 2014
2Q 2013
P8,191
P8,187
P9,253
(P4)
(P1,066)
-11.5
4,110
4,081
3,877
130
74
7,412
2,789
2,296
2,327
247
4,709
3,478
3,355
82
41
7,680
2,811
2,402
2,467
174
5,790
3,463
3,297
116
50
7,934
3,053
2,246
2,635
357
599
(603)
(522)
(48)
(33)
268
22
106
140
(73)
14.6
-14.8
-13.5
-36.9
-44.6
3.6
0.8
4.6
6.0
-29.6
(1,081)
15
58
(34)
(9)
(254)
(242)
156
(168)
(183)
-18.7
0.4
1.8
-29.3
-18.0
-3.2
-7.9
6.9
-6.4
-51.3
3
(113)
P538
P1,764
(6)
(105)
P457
P1,666
(137)
P788
P2,230
(9)
8
(P81)
(P98)
-300.0
-7.1
-15.1
-5.6
(6)
32
(P331)
(P564)
100.0
-23.4
-42.0
-25.3
During the quarter, advertising revenues grew by almost P600 million or 14.6% compared to previous quarter
owing to 7% increase in terms of volume and impact of rate increase implemented last February 2014.
Excluding impact of election-related revenue in 2013, consolidated revenues is down by only 1.3% compared
with second quarter of 2013.
On the other hand, consumer sales decreased by P603 million or 14.8% due to lower number of movies released
during the quarter.
Mainstream - Star Cinema

Mainstream - Skylight
Distribution
Total
1Q 2014
4
1
5
2Q 2014
2
1
1H 2014
6
1
1
8
1H 2013
6
1
1
8
Total costs and expenses grew by P268 million or 3.6% compared to previous quarter.
Production costs during the quarter remain flat compared with first quarter with a minimal increase of 0.8%
which is a net effect of 13% increase in noncash expenses and decline of 1% in cash expenses.
Decrease in cost of sales and services related to theatrical and events is offset by increase in programming and
bandwidth costs of 6% and 26%, respectively, coupled with 407% growth in inventory costs from licensing
business.
GAEX grew by 6% due to increase in personnel and facilities-related expenses.
Compared with second quarter of 2013, total costs and expenses declined by P254 million or 3.2%. Excluding
impact of election-related costs and expenses, this quarter has a minimal increase of only 0.3%.
Blockbuster movies released both locally and internationally boosted the net income for the first quarter of 2014.
Excluding election-related income, net income during the quarter increased by 47.9% compared with second
quarter of 2013.
Business Segments
For management purposes, the Company presents its operations into the following reportable businesses:
TV and Studio, Pay TV Networks and New Businesses.
This segmentation is the basis upon which the Company measures its business operations.
TV and Studio
TV and studio segment is comprised of broadcast, global operations, film and music production, cable
channels, and publishing. This consists of local and global content creation and distribution through
television and radio broadcasting.
Broadcast segment covers content creation and distribution mainly through free TV
and radio with Channel 2 and DZMM as its flagship platforms. The content created
is predominantly in Filipino and is aimed at the mass Filipino audience. The
Companys leading position in the Philippine television broadcasting industry is
largely due to the popularity of its entertainment programs, including teleseryes,
drama anthologies, situation comedies, variety, reality and game shows. On the other
hand, news and public affairs programs have developed a reputation for the quality of
news coverage that includes national, local and international events.
Global segment, through ABS-CBN International, North America (NA), pioneered
the international content distribution through Direct to Home (DTH), cable, internet
protocol TV, mobile and online through The Filipino Channel (TFC). It is available
in all territories where there is a significant market of overseas Filipinos such as the
Unites States, Middle East, Europe, Australia, Canada and Asia Pacific. Other
activities include international film distribution, sponsorship and events, remittance
and retail.
Films and Music segment of the Company is composed of movie production, film
distribution, audio recording and distribution and video/audio post production. Films
are generally produced through its subsidiary ABS-CBN Film Productions (AFPI) or
more popularly known as Star Cinema. Other movies are co-produced with other
local or international producers or are simply distributed by AFPI. Music needs are
managed by Star Recording, Inc. and Star Songs, Inc. to complement the recording
needs of the Companys multi-talented artists and handle music publishing and
composing requirements, respectively.
Narrowcast and Sports segment caters to the needs of specific or targeted audiences
or markets not normally addressed by the Broadcast business. Included in this line of
business are cable programming and channel offerings such as Filipino movie
channel, music channel, anim, upscale male sports content and upscale female
lifestyle content. It also covers print, sports, and other niched programming via its
UHF (Ultra High Frequency) channel. Narrowcast and Sports includes the following
subsidiaries: Creative Programs, Inc. and ABS-CBN Publishing, Inc. As part of the
Companys goal to elevate boxing as a sport in the country, it entered into a joint
venture agreement with ALA Promotions, Inc., a world class boxing organization and
promotional company.
Pay TV Networks
Pay TV networks include cable television services of Sky Cable and
its subsidiaries in Metro Manila and in certain provincial areas in the
Philippines. It offers both postpaid and prepaid packages as well as a
la carte programming, broadband, internet phone, among others.
Consumers are given various options that can be tailor fitted to suit
their specific requirements including the ability to have a real tripleplay service in the market that combines cable TV, broadband and
internet phone. Catch up feature on missed programming via iWantv
were provided as an option to the customers for a total pay TV
entertainment package. With Sky Cables acquisition of Destiny
Cable, Sky Cable accounts for nearly half of the total local pay TV
market.
New Businesses
New businesses and initiatives pertain to wireless telecommunications business, digital terrestrial TV, theme
parks and home shopping.
ABS-CBNMobile
Wireless Telecommunications business was established on May 28, 2013
through ABS-CBNmobiles network sharing agreement with Globe Telecom.
This partnership enables ABS-CBN to deliver ABS-CBN content in addition to
traditional telecommunication services on mobile devices. Through the networksharing agreement, Globe will provide capacity and coverage on its existing
cellular mobile telephony network to ABS-CBN Convergence on a nationwide
basis. The parties may also share assets such as servers, towers, and switches.
On November 16, 2013, ABS-CBN Mobiles pre-paid service was launched.
Digital Terrestrial TV
The Company continues to invest in Digital Terrestrial TV equipment to improve
clarity of signal in certain areas of Mega Manila and Central Luzon. The
company believes that the transition from analogue to digital will result in an
increase in its audience share. The Company will be ready to launch as soon as
the implementing rules and regulations is released.
Theme Parks
The Company has also invested in a theme park more popularly known as
Kidzania Manila. KidZania provides children and their parents a safe, unique,
and very realistic educational environment that allows kids between the ages of
four to twelve to do what comes naturally to them: role-playing by mimicking
traditionally adult activities. As in the real world, children perform "jobs" and
are either paid for their work (as a fireman, doctor, police officer, journalist,
shopkeeper, etc.) or pay to shop or to be entertained. The indoor theme park is a
city built to scale for children, complete with buildings, paved streets, vehicles, a
functioning economy, and recognizable destinations in the form of
"establishments" sponsored and branded by leading multi-national and local
brands.
Home Shopping
A CJ O Shopping Corporation is a joint venture between ABS-CBN and CJ O
Shopping Corporation of Korea to provide TV home shopping in the Philippines.
The TV home shopping channel was launched in October 2013.
The following table presents revenue and income information regarding the Companys business segments for
the years 2014 and 2013:
Net Income
EBITDA
1H 2014
1H 2013
%
1H 2014
1H 2013
P1,706
P1,646
3.6
P3,537
P3,658
13.1%
12.1%
27.2%
26.8%
3,823
3,410
12.1
122
147
-17.0
879
830
3.2%
4.3%
23.0%
24.3%
198
275
-28.0
(833)
(502)
65.9
(986)
(358)
(569)
(64) 789.1
P16,451
P17,271
-4.7
P995
P1,291
-22.9
P3,430
P4,130
Margins
6.0%
7.5%
20.8%
23.9%
*Gross of revenue deductions amounted to P73 million and P93 million in June 30, 2014 and 2013, respectively.
TV and Studio
Margins
Pay TV Networks
Margins
New Businesses
Intersegment Eliminations
1H 2014
P12,999
Revenues*
1H 2013
P13,650
%
-4.8
%
-3.3
5.9
175.4
-16.9
A. TV and Studio
TV and Studio segment results for the first half are as follows:
(Amounts in
Revenues*
million Pesos)
Broadcast
Global
Films and Music
Narrowcast and Sports
Others**
1H 2014
1H 2013
%
P8,675
P9,576
-9.4
2,872
2,596 10.6
876
760 15.3
780
828
-5.8
(204)
(110) 85.5
P12,999
P13,650
-4.8
*Gross of revenue deductions.
**This includes intercompany eliminations within segment.
Direct Costs
1H 2014
P5,298
1,713
413
625
(552)
P7,497
1H 2013
P5,509
1,595
357
683
(416)
P7,728
Gross Profit Rate (%)

%
-3.8
7.4
15.7
-8.5
32.7
-3.0
1H 2014
38.9
40.4
52.9
19.9
1H 2013
42.5
38.6
53.0
17.5
Variance
-3.5
1.8
-0.2
2.4
42.3
43.4
-1.1
Broadcast
Revenues from the broadcast business declined by P901 million or 9.4% year-on-year. Excluding the
impact of election-related revenues, recurring revenues grew by 4.6%. Growth is fuelled by ABS-CBNs
strength in content creation and programming which led to ratings leadership.
ABS-CBNs Channel 2 led in national audience share and ratings. Channel 2s total day audience share was
at 44% while the primetime audience share was at 49% based on Kantar National TV Audience
Measurement.
Moreover, first half top 10 programs in the Philippines were from ABS-CBN:
Rank
1
2
3
4
5
6
7
8
9
10
Channel
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
ABS-CBN
Program
The Voice Kids - Sunday
The Voice Kids - Saturday
Honesto
Mars Ravelos Dyesebel
Ikaw Lamang
Wansapanataym
MMK Ang Tahanan Mo
Got to Believe
TV Patrol Weekday
Bet on Your Baby
Rating (%)
36.4
Weekend
34.2
Weekend
31.7
Weekday
30.7
Weekday
29.3
Weekday
29.0
Weekend
28.5
Weekend
28.3
Weekday
27.2
Weekday
24.9
Weekend
*Source : Kantar Media TV Audience Measurement - Total Homes, January - June 2014 (excluding Holyweek)
Direct costs and expenses associated with broadcast operations decreased by 6.9% or P576 million due to
continuous implementation of cost management initiatives by the Company.
Global
As of June 30, 2014, ABS-CBN Global has over 2.8 million viewers in over 40 countries across 4 continents
worldwide. Forty three percent (43%) of Global viewers are in North America while 40% are in the Middle
East.
Globals primary revenue drivers are as follows:

Subscription
Theatrical and Events
Advertising Revenue
Remittance
Others
Contribution
63%
11%
10%
9%
7%
100%
Revenues
1H 2014
1H 2013
P1,796
P1,663
330
214
298
206
247
195
201
318
P2,872
P2,596
%
8.0
54.2
44.7
26.7
-36.8
10.6%
Total revenue of Global grew by 10.6% year-on-year. Excluding impact of foreign exchange,
it grew by 2.6%.
Subscription revenues grew by P133 million or 8.0% year-on-year. Total viewership increased by 1%
driven by growth in Canada and Australia of 17.4% and 6.0%, respectively, with a slight decline in other
regions.
Revenue from theatrical and events grew by P116 million coming from the success of international
screening of the Girl Boy Bakla Tomboy, Bride for Rent, Starting Over Again, Pagpag and Maybe This
Time. Total gross revenues from theatrical grew by 52.9% year-on-year driven by shorter window between
local and international releases of the movies.
ASAP in Dubai and OK Go Canada event fuelled the 44.7% growth in advertising revenues.
Remittance revenue went up by 26.7% driven by increase in volume of 11.2%.
Cost of sales and services of Global operations increased by 7%. The higher cost is attributable to
theatrical costs related to movies shown overseas and costs of mounted events which grew by 58% and 6%,
respectively. In addition, transaction costs also grew by 13%, parallel to the increase in remittance volume.
Contribution margin improved by 1% from 16% in first half of 2013.
Films and Music
Total revenue of Films and Music grew by more than P100 million year-on-year. ABS-CBN Film
Productions, Inc. (a.k.a Star Cinema) released 8 films during the first half of the year. Three of them
topped P300 million box office receipts Girl Boy Bakla Tomboy (P421 million), Bride for Rent (P323
million) and Starting Over Again (P390 million) and another three generated more than P100 million gross
receipts Pagpag (P177 million), Da Possessed (P119 million) and Maybe This Time (P133 million).
Considering both local and foreign movies, Starting Over Again was the 2nd top grosser movie next to The
Amazing Spider Man (P447 million). My Illegal Wife was the first Skylight movie that posted more than
P80 million gross receipts. As of June 30, 2014, Star Cinema captured 88% of the total local market gross
receipts (excluding receipts from Metro Manila Film Festival movies).
The Company also mounted a successful concert - DOS The Daniel Padilla Concert- last April 2014.
Cost of sales and services increased by 15.7% year-on-year. This is attributable to more quality-produced
films of the Company.
Narrowcast and Sports
Total revenues of narrowcast and sports has a net decrease of 5.8%. Despite increase in subscription
revenues of 11% which is attributable to 12% growth in Cinema One channel, circulation revenues declined
by 24.2% year-on-year. Magazine issued during the period was reduced by 29% compared in the same
period of last year. To still maintain sound gross profit margins, management controlled its direct costs
which declined by 8.5%. Gross profit margin improved by 2.4% year-on-year.
The Company continue to grow its classic cable channel Jeepney TV which offers well-loved and timeless
programs of ABS-CBN as well as movies and other program fare that define and highlight the best of
Filipino TV.
B. Pay TV Networks
The Pay TV business segment refers to the local subscription based cable television services of Sky Cable
Corporation and its subsidiaries. It offers postpaid and prepaid packages as well as a la carte programming,
broadband and internet phone among others.
Below is a breakdown of the Pay TV Networks revenues:

Cable
Broadband
Advertising Revenue and Others
1H 2014
P2,797
598
428
P3,823
Revenues
1H 2013
P2,606
427
377
P3,410
%
7.3
40.0
13.5
12.1
Total revenues grew by more than P400 million or 12.1% year-on year. Broadband revenues increased by
40% driven by 31% growth in subscriber base while cable revenues also grew by 7.3% driven as well by 3%
growth in subscriber count.
Direct cost and expenses increased by 14.8% or P463 million to P3.600 billion. The increase is caused by
growth in programming and bandwidth costs of 16% and 44%, respectively. Increase in bandwidth costs is
due to improvement made in the product to match market competition. Excluding foreign exchange losses,
costs and expenses increased merely by 13%.
Capital Expenditures
Cash capital expenditures and program rights acquisitions amounted to P2.301 billion as of June 30, 2014.
Program rights acquisitions amounted to P387 million. Investments in Pay TV facilities reached P1 billion.
Statement of Financial Position Accounts
As at June 30, 2014, total consolidated assets stood at P64.848 billion, 11.8% higher than total assets of P57.992
billion as of December 31, 2013.
Cash and cash equivalents of P15.270 billion is 43.8% higher than the December 31, 2013 balance. The increase
in cash is coming from the proceeds of the P7.0 billion loan. Consequently, total interest-bearing loans grew by
38.8% at P20.383 billion.
Trade accounts receivables amounting to P8.199 billion is 13% higher than at the end of 2013.
Shareholders equity stood at P26.239 billion as of December 31, 2013. Increase attributable to net income
earned during the quarter was offset by effect of declaration of cash dividends for both common and preferred
shareholders.
The companys net debt-to-equity ratio was at 0.19x as of June 30, 2014 and December 31, 2013.
Key Performance Indicators
Ratios
Current ratio
Debt-to-Equity ratio
Net Debt-to-Equity ratio
1H 2014
2.24
0.78
19.48%
2013
1.76
0.57
15.67%
EXHIBIT 1 Aging of Accounts Receivable

As of June 30, 2014
Amount in Thousands
Neither Past Due

nor Impaired
Trade Receivables
Airtime
Subscription
Others
Nontrade Receivables
Total
3,596,476
545,070
277,664
317,052
4,736,262
Past Due Accounts

Less than 30 Days 30 Days and Over
896,063
208,832
129,153
24,580
1,258,628
447,511
374,784
1,062,978
247,193
2,132,466
Impaired
Allowance
993,716
716,197
351,559
36,503
2,097,975
(556,954)
(693,690)
(150,113)
(38,004)
(1,438,761)
Total
5,376,812
1,151,193
1,671,241
587,324
8,786,570
As of December 31, 2013

Amount in Thousands
Trade Receivables
Airtime
Subscription
Others
Nontrade Receivables
Due from related parties
Total
Neither Past Due

nor Impaired
Past Due Accounts

Less than 30 Days 30 Days and Over
3,122,176
640,513
603,962
301,875
1,240,859
153,451
129,352
16,495
128,209
418,901
723,331
234,292
4,668,526
1,540,157
1,504,732
Impaired
Allowance
Total
638,856
576,485
173,702
92,980
1,482,023
(556,922)
(550,286)
(192,125)
(27,327)
(1,326,661)
4,573,178
1,239,063
1,438,220
618,316
7,868,778
ABSCBN Corporation and Subsidiaries

Unaudited Interim Condensed Consolidated Financial Statements
June 30, 2014
and for the Six Months Ended June 30, 2014 and 2013
(With Comparative Audited Consolidated Statement of Financial Position as at
December 31, 2013)
ABS-CBN CORPORATION AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION
(Amounts in Thousands)
June 30,
2014
(Unaudited)
December 31,
2013
(Audited)
P
=15,270,120
9,364,870
648,349
933,409
2,858,494
29,075,242
=10,616,855
P
8,333,761
265,221
1,385,972
2,781,665
23,383,474
19,040,790
18,535,905
5,945,094
5,284,666
221,646
195,335
199,589
2,469,200
2,416,869
35,773,189
5,429,192
5,288,350
219,191
196,916
166,591
2,192,429
2,580,033
34,608,607
P
=64,848,431
=57,992,081
P
P
=12,375,892
117,703
309,374
189,520
12,992,489
=11,332,006
P
1,345,471
448,861
193,216
13,319,554
20,264,927
221,405
13,334,579
276,344
4,409,823
138,271
252,062
330,274
25,616,762
38,609,251
4,191,082
299,798
245,195
402,772
18,749,770
32,069,324
ASSETS
Current Assets
Cash and cash equivalents (Note 6)
Trade and other receivables (Notes 7 and 22)
Inventories (Note 8)
Program rights and other intangible assets (Note 12)
Other current assets (Note 9)
Total Current Assets
Noncurrent Assets
Property and equipment (Notes 10, 11, 18 and 29)
Program rights and other intangible assets - net of current portion
(Note 12)
Goodwill (Note 16)
Available-for-sale investments (Note 13)
Investment properties (Notes 10, 11 and 18)
Investments in associates and joint ventures (Note 14)
Deferred tax assets - net (Note 27)
Other noncurrent assets (Note 15)
Total Noncurrent Assets
LIABILITIES AND EQUITY

Current Liabilities
Trade and other payables (Notes 17, 22 and 28)
Interest-bearing loans and borrowings (Notes 10, 11 and 18)
Obligations for program rights (Note 19)
Income tax payable
Total Current Liabilities
Noncurrent Liabilities
Interest-bearing loans and borrowings - net of current portion
(Notes 10, 11 and 18)
Obligations for program rights - net of current portion (Note 19)
Accrued pension obligation and other employee benefits
(Note 28)
Deferred tax liabilities (Note 27)
Convertible note
Other noncurrent liabilities (Note 20)
Total Noncurrent Liabilities
Total Liabilities
June 30,
2014
(Unaudited)
Equity Attributable to Equity Holders of
the Parent Company
Capital stock (Note 21):
Common
Preferred
Additional paid-in capital (Note 21)
Cumulative translation adjustments
Unrealized gain on available-for-sale investments (Note 13)
Share-based payment plan
Retained earnings (Note 21)
Philippine depository receipts convertible to common shares
(Note 21)
Noncontrolling Interests (Note 3)
Total Equity
See accompanying Notes to Interim Condensed Consolidated Financial Statements.
December 31,
2013
(Audited)
P
=872,124
200,000
4,495,050
(360,289)
124,221
34,349
20,452,666
=872,124
P
200,000
4,495,050
(270,632)
121,766
34,349
19,817,957
(1,264,096)
24,554,025
(1,164,146)
24,106,468
1,685,155
26,239,180
1,816,289
25,922,757
P
=64,848,431
=57,992,081
P

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in Thousands, Except Per Share Amounts)
For the Quarter

Ended June 30
For the Period

Ended June 30
2014
2013
2014
2013
P
=4,709,467
3,355,126
82,070
40,890
8,187,553
=5,789,832
P
3,296,864
116,111
49,541
9,252,348
P
=8,819,197
7,231,883
212,057
115,089
16,378,226
=10,213,025
P
6,689,959
190,873
83,847
17,177,704
PRODUCTION COSTS
(Notes 10, 12, 22, 23, 28 and 29)
(2,811,097)
(3,053,323)
(5,599,607)
(5,826,125)
COST OF SERVICES
(Notes 8, 10, 12, 15, 22, 24, 28 and 29)
(2,356,068)
(2,177,423)
(4,616,116)
(4,277,854)
(45,912)
(68,890)
(82,275)
(119,636)
2,974,476
3,952,712
6,080,228
6,954,089
(2,467,046)
(2,634,837)
(4,793,845)
(4,921,117)
(287,246)
(198,746)
(553,551)
(400,827)
INTEREST INCOME (Note 6)
49,632
27,785
77,936
48,265
FOREIGN EXCHANGE GAINS

(LOSSES) - net
63,889
(185,298)
55,307
(136,535)
5,871
(13)
2,998
(27)
OTHER INCOME - net (Notes 26 and 29)
104,396
136,904
216,766
237,503
INCOME BEFORE INCOME TAX
443,972
1,098,507
1,085,839
1,781,351
PROVISION FOR (BENEFIT FROM)

INCOME TAX (Note 27)
(12,914)
310,646
90,867
490,582
P
=456,886
=787,861
P
P
=994,972
=1,290,769
P
P
=535,290
(78,404)
P
=456,886
P836,162
=
(48,301)
=787,861
P
P
=1,161,983
(167,011)
P
=994,972
=1,343,876
P
(53,107)
=1,290,769
P
P
=0.671
=1.088
P
P
=1.457
=1.772
P
REVENUES
Advertising (Note 22)
Sale of services (Note 29)
Sale of goods (Note 22)
Others
COST OF SALES
(Notes 8, 10, 22, 24, 28 and 29)
GROSS PROFIT
GENERAL AND ADMINISTRATIVE
EXPENSES
(Notes 7, 8, 10, 11, 12, 22, 25, 28 and 29)
FINANCE COSTS (Notes 18 and 26)
EQUITY IN NET EARNINGS (LOSSES) OF

ASSOCIATES AND JOINT VENTURES
(Note 14)
NET INCOME
Attributable to
Equity holders of the Parent Company (Note 32)
Noncontrolling interests
Basic/Diluted Earnings per Share Attributable

to Equity Holders of the Parent Company
(Note 32)

INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
(Unaudited)
For the Quarter

Ended June 30
2013
2014
NET INCOME
OTHER COMPREHENSIVE INCOME
(LOSS)
Other comprehensive income (loss) to be
reclassified to profit and loss in subsequent
periods:
Unrealized fair value gain (loss) on
available-for-sale investments (Note 13)
Exchange differences on translation of
foreign operations
TOTAL COMPREHENSIVE INCOME

Attributable to
Equity holders of the Parent Company
Noncontrolling interests
For the Period

Ended June 30
2013
2014
P
=456,886
=787,861
P
P
=994,972
=1,290,769
P
(14,421)
1,636
2,455
35,387
(164,690)
(179,111)
276,594
278,230
(89,657)
(87,202)
322,268
357,655
P
=277,775
=1,066,091
P
P
=907,770
=1,648,424
P
P
=356,179
(78,404)
P
=277,775
=1,114,392
P
(48,301)
=1,066,091
P
P
=1,074,781
(167,011)
P
=907,770
=1,701,531
P
(53,107)
=1,648,424
P

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013
(Unaudited)
Capital Stock (Note 21)

Common
Preferred
Subscribed
Common Subscription
Stock
Receivable
Attributable to Equity Holders of the Parent Company

Unrealized
Gain
on AvailableAdditional Cumulative
for-Sale Share-based
Retained Earnings (Note 21)
Paid-in Translation
Investments
Payment
(Note 13)
Capital Adjustments
Plan Appropriated Unappropriated
Philippine
Depository
Receipts (PDRs)
Convertible to
Common Shares
(Note 21)
Total
Noncontrolling
Interests
Total Equity
P
=
P
=
P
=
P
=
P
= 4,495,050
P
= 4,495,050
(P
= 270,632)
(89,657)
(89,657)
(P
= 360,289)
P
= 121,766
2,455
2,455
P
= 124,221
P
= 34,349
P
= 34,349
P
= 16,200,000
P
= 16,200,000
P
= 3,617,957
1,161,983
1,161,983
(527,274)
P
= 4,252,666
(P
= 1,164,146)
(99,950)
(P
= 1,264,096)
P
= 24,106,468
1,161,983
(87,202)
1,074,781
(527,274)
(99,950)
P
= 24,554,025
P
= 1,816,289 P
= 25,922,757
(167,011)
994,972
(87,202)
(167,011)
907,770
35,877
35,877
(527,274)
(99,950)
P
= 1,685,155 P
= 26,239,180
At December 31, 2012

=779,585
P
=
P
=
P
Net income
Other comprehensive income
Total comprehensive income
Cash dividend declared
Reversal of appropriation of retained

earnings
Appropriation of retained earnings
Issuance of common stock

57,837
Subscription of common stock
34,702
Issuance of preferred stock
200,000
Increase in noncontrolling interest
At June 30, 2013 (Unaudited)

=837,422
P
=200,000
P
=34,702
P
=
P
=679,069
P
(P
=638,289)
322,268
322,268
=126,676
P
35,387
35,387
=28,952
P
=8,300,000
P
=11,047,893
P
1,343,876
1,343,876
(296,563)
(P
=1,164,146)
=19,159,740
P
1,343,876
357,655
1,701,531
(296,563)
=2,359,132
P
(53,107)
(53,107)
=21,518,872
P
1,290,769
357,655
1,648,424
(296,563)
(1,125,000)
(P
=1,125,000)
2,436,377
1,465,298
=4,580,744
P
(P
=316,021)
=162,063
P
=28,952
P
(8,300,000)
16,200,000
=16,200,000
P
8,300,000
(16,200,000
=4,195,206
P
(P
=1,164,146)
2,494,214
375,000
200,000
=23,633,922
P
(67,521)
=2,238,504
P
2,494,214
375,000
200,000
(67,521)
=25,872,426
P
At December 31, 2013 (Audited)

Net income
Other comprehensive income (loss)
Total comprehensive income (loss)
Additional investment
Cash dividends declared
Acquisitions of PDRs
At June 30, 2014 (Unaudited)
P
= 872,124
P
= 872,124
P
= 200,000
P
= 200,000

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30

2013
2014
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax
Adjustments for:
Depreciation and amortization (Notes 10 and 11)
Amortization of:
Program rights and other intangibles (Note 12)
Debt issue costs (Note 26)
Deferred charges (Note 24)
Interest expense (Note 26)
Interest income (Note 6)
Equity in net losses (earnings) of associates and joint
ventures (Note 14)
Gain on sale of property and equipment (Note 26)
Net unrealized foreign exchange losses (gains)
Income before working capital changes
Provisions for:
Pension expense and other employee benefits (Note 28)
Doubtful accounts (Note 25)
Inventory losses (Note 8)
Increase in:
Trade and other receivables
Inventories
Other current assets
Increase (decrease) in:
Trade and other payables
Other noncurrent liabilities
Obligations for program rights
Contribution to pension plan
Cash generated from operations
Income taxes paid
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to:
Property and equipment (Note 10)
Program rights and other intangible assets (Notes 12 and 33)
Increase (decrease) in other noncurrent assets
Interest received
Investment in joint venture (Note 14)
Proceeds from sale of property and equipment
Net cash used in investing activities
(Forward)
P
=1,085,839
=1,781,351
P
1,405,610
1,504,104
677,771
55,944
34,865
491,788
(77,936)
744,883
11,487
32,519
387,897
(48,265)
(2,998)
(1,870)
27,564
3,696,577
27
(153)
(14,212)
4,399,638
454,108
193,120
20,963
523,410
212,109
3,983
(1,244,539)
(399,449)
(263,608)
(1,484,552)
(1,414)
(88,578)
696,301
(143,647)
(194,822)
2,815,004
(552,399)
2,262,605
1,336,722
(200,562)
99,100
(540)
4,799,316
(656,009)
4,143,307
(1,914,428)
(667,333)
301,109
69,158
(30,000)
8,868
(2,232,626)
(1,175,438)
(830,662)
(250,349)
50,560
7,312
(2,198,577)
-2-

2013
2014
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from:
Long-term debt
Bank loans
Payments of:
Long-term debt
Dividends
Interest
Bank loans
Obligations under finance lease
Issuances of:
Common shares (Note 21)
Preferred shares (Note 21)
Acquisition of Philippine depository receipts (Note 21)
Proceeds from additional investment
Decrease in noncontrolling interests
Net cash provided by financing activities
EFFECTS OF EXCHANGE RATE CHANGES
AND TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS
P
=8,585,063
=
P
850,000
(2,557,611)
(497,862)
(437,920)
(400,000)
(15,681)
(293,554)
(351,472)
(1,000,000)
(22,871)
(99,950)
35,877
4,611,916
2,869,215
200,000
(67,521)
2,183,797
11,370
14,212
4,653,265
4,142,739
CASH AND CASH EQUIVALENTS

AT BEGINNING OF YEAR
10,616,855
6,394,938
CASH AND CASH EQUIVALENTS

AT END OF YEAR (Note 6)
P
=15,270,120
=10,537,677
P
NET INCREASE IN CASH AND CASH EQUIVALENTS

NOTES TO INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Amounts in Thousands Unless Otherwise Specified)
1. Corporate Information
ABS-CBN Corporation (ABS-CBN or Parent Company) is incorporated in the Philippines on
July 11, 1946. On July 27, 1994, the Philippine Securities and Exchange Commission (SEC)
approved the extension of the corporate term of the Parent Company for another 50 years. The
Parent Companys core business is television and radio broadcasting. Its subsidiaries and
associates are involved in the following related businesses: cable and direct-to-home (DTH)
television distribution and telecommunications services overseas, movie production, audio
recording and distribution, video/audio post production and film distribution. Other activities of
the subsidiaries include merchandising, internet and mobile services and publishing.
In 2013, Capital International Private Equity Fund VI, L.P. (CIPEF) subscribed to P
=2.5 billion
worth of new Philippine Depository Receipts (PDRs) issued by ABS-CBN Holdings Corporation
(ABS-CBN Holdings) which in turn subscribed to the same number of newly issued common
shares of the Parent Company. Lopez, Inc. also subscribed to 34,702,140 common shares and
987,130,246 preferred shares of the Parent Company in 2013. After the subscription, Lopez,
Inc.s economic interest in the Parent Company decreased to 56% while its voting rights increased
from 57% to 79% as of December 31, 2013 (see Note 21).
The common shares of ABS-CBN were listed beginning July 8, 1992 and have been traded in the
Philippine Stock Exchange (PSE) since then.
The registered office address of the Parent Company is ABS-CBN Broadcasting Centre, Sgt.
Esguerra Ave. corner Mother Ignacia Street, Quezon City.
2. Summary of Significant Accounting and Financial Reporting Policies

Basis of Preparation
The accompanying interim condensed consolidated financial statements of ABS-CBN and all its
subsidiaries (collectively referred to as the Company) have been prepared on a historical cost
basis, except for available-for-sale (AFS) investments that have been measured at fair value.
The interim condensed consolidated financial statements are presented in Philippine peso, which is
the functional and presentation currency of the Parent Company. All values are rounded to the
nearest thousand, except for number of shares, per share amounts and when otherwise indicated.
Statement of Compliance
The interim condensed consolidated financial statements of the Company were prepared in
compliance with Philippine Financial Reporting Standards (PFRS). PFRS includes statements
named PFRS and Philippine Accounting Standards (PAS) and Philippine Interpretations issued by
the Financial Reporting Standards Council (FRSC).
The interim condensed consolidated financial statements do not include all of the information and
disclosures required in the annual consolidated financial statements and should be read in
conjunction with the 2013 audited annual consolidated financial statements, comprising the
consolidated statements of financial position as at December 31, 2013, 2012 and January 1, 2012,
-2-
and the consolidated statements of income, consolidated statements of comprehensive income,

consolidated statements of changes in equity and consolidated statements of cash flows for the
years ended December 31, 2013, 2012 and 2011, issued and approved on February 25, 2014
(referred to as the 2013 audited annual consolidated financial statements).
Changes in Accounting Policies and Disclosures
The accounting policies adopted in the preparation of the interim condensed consolidated financial
statements are consistent with those followed in the preparation of the Companys 2013 audited
annual consolidated financial statements.
Basis of Consolidation and Noncontrolling Interests
The interim condensed consolidated financial statements include the financial statements of the
Parent Company and its subsidiaries as of June 30, 2014 and December 31, 2013.
The following is a list of the subsidiaries or companies, which ABS-CBN controls as of
June 30, 2014 and December 31, 2013:
Company
TV and Studio
Global:
ABS-CBN Global Ltd.
(ABS-CBN Global)(a) (j)
ABS-CBN Europe Ltd.
(ABS-CBN Europe)(b) (c) (j)
ABS-CBN Europe Remittance Inc.(d) (j)
ABS-CBN Japan, Inc.
(ABS- CBN Japan)(d) (j)
ABS-CBN Middle East FZ-LLC
(ABS-CBN Middle East)(b) (j)
ABS-CBN Middle East LLC(b) (j)
E-Money Plus, Inc.(b)
ABS-CBN Global Hungary Kft.
(ABS-CBN Hungary)(j) (l)
ABS-CBN International, Inc.
(ABS-CBN International)(j) (n)
ABS-CBN Australia Pty. Ltd.
(ABS-CBN Australia)(j) (k)
ABS-CBN Canada, ULC
(ABS-CBN Canada)(j) (k)
ABS-CBN Global Remittance Inc.(j) (k)
Place of
Incorporation
Principal Activities
Cayman Islands
Holding company
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
100.0
California, USA
Cable and satellite

programming services
Cable and satellite
Cable and satellite
Services - money
remittance
Telecommunications
USD
100.0
100.0
Australian dollar
(AUD)
Canadian dollar
(CAD)
USD
100.0
100.0
100.0
100.0
100.0
100.0
USD
100.0
100.0
Services - money
remittance
Intermediate holding and
financing company
CAD
100.0
100.0
Euro (EUR)
100.0
100.0
Movie production
Philippine peso
100.0
100.0
Philippine peso
100.0
100.0
Philippines
Audio and video

production and
distribution
Music publishing
Philippine peso
100.0
100.0
Philippines
Print publishing
Philippine peso
100.0
100.0
Philippines
Content development and Philippine peso

100.0
100.0
100.0
100.0
Victoria, Australia
Canada
California, USA
California, USA
ABS-CBN Global Netherlands B.V.

(ABS-CBN Netherlands)(j) (n)
Amsterdam,
Netherlands
Canada
Films and Music:

ABS-CBN Film Productions, Inc.
Philippines
(ABS-CBN Films) (v)
Star Recording, Inc. (Star Recording) (v) Philippines
Narrowcast and Sports:

ABS-CBN Publishing, Inc.
(ABS-CBN Publishing)
Creative Programs, Inc. (CPI)
Studio 23, Inc. (Studio 23)
Effective Interest
June 30, December 31,
2013
2014
United States dollar

(USD)
United Kingdom
Cable and satellite
Great Britain pound
(GBP)
United Kingdom
Services - money
GBP
remittance
Japan
Cable and satellite
Japanese yen (JPY)
Dubai, UAE
Cable and satellite
United Arab
Emirates dirham
(AED)
Dubai, UAE
Trading
AED
Philippines
Services - money
Philippine peso
remittance
Budapest, Hungary Holding company
USD
ABS-CBN Telecom North America,

Inc.(j) (k)
ABS-CBN Canada Remittance Inc.(j) (n)
Star Songs, Inc. (Star Songs) (v)
Functional
Currency
Philippines
-3-
Company
Place of
Incorporation
Others:
ABS-CBN Center for Communication Philippines
Arts, Inc.(e)
ABS-CBN Global Cargo Corporation(u) Philippines
Effective Interest
2013
2014
Functional
Currency
Educational/training
Philippine peso
100.0
100.0
Philippine peso
100.0
100.0
ABS-CBN Integrated and Strategic

Property Holdings, Inc.
ABS-CBN Interactive, Inc.
(ABS-CBN Interactive)
ABS-CBN Multimedia, Inc.
(ABS-CBN Multimedia)(f)
ABS-CBN Shared Service Center PTE.
Ltd.(j) (m)
Professional Services for Television
& Radio, Inc.
Rosetta Holdings Corporation (RHC)(q)
Philippines
Non-vessel operations
common carrier
Real estate
Philippine peso
100.0
100.0
Philippines
Services - interactive mediaPhilippine peso
100.0
100.0
Philippines
Philippine peso
100.0
100.0
Singapore
Digital electronic content

distribution
Services - support
100.0
100.0
Philippines
Services - production
Singapore dollar
(SGD)
Philippine peso
100.0
100.0
Philippines
Holding company
Philippine peso
100.0
100.0
Sarimanok News Network, Inc.
Philippines
100.0
100.0
The Big Dipper Digital Content &

Design, Inc. (Big Dipper)
Philippines
100.0
100.0
TV Food Chefs, Inc.
Philippines

Digital film archiving and Philippine peso
central library, content
licensing and
transmission
Services - restaurant and Philippine peso
food
100.0
100.0
Philippines
Philippines
Philippines
Holding company
Cable television services
Philippine peso
Philippine peso
Philippine peso
75.0(x)
57.4
57.4
75.0(x)
57.4
57.4
Philippines
Philippines
Philippines

Philippine peso
Philippine peso
Philippine peso
57.4
57.4
57.4
57.4
57.4
57.4
Philippines
Philippines
Philippines
Philippines
Philippines
Philippines

Philippine peso
Philippine peso
Philippine peso
Philippine peso
Philippine peso
Philippine peso
57.4
57.4
57.4
57.4
57.4
57.4
57.4
57.4
57.4
57.4
57.4
57.4
Philippines
Philippines
Philippines

Holding company
Philippine peso
Philippine peso
Philippine peso
57.4
57.4
57.4
57.4
57.4
57.4
Philippines
Philippine peso
57.4
57.4
Philippines
Philippines
Philippines
Philippines
Philippines
Philippines
Philippines
Philippines
Philippines
Philippines
Philippines

Holding company
Philippine peso
Philippine peso
Philippine peso
Philippine peso
Philippine peso
Philippine peso
Philippine peso
Philippine peso
Philippine peso
Philippine peso
Philippine peso
57.4
57.4
57.4
54.6
54.0
53.0
55.8
52.2
52.2
40.2
34.4
57.4
57.4
57.4
54.6
54.0
53.0
55.8
52.2
52.2
40.2
34.4
Philippines
Holding company
Philippine peso
100.0
100.0
Philippines
Theme park
Budapest, Hungary Theme park
Philippine peso
USD
73.0
73.0
73.0
73.0
Philippines
Philippines
Services - call center

Holding company
Philippine peso
Philippine peso
100.0
100.0
100.0
100.0
Philippines
Philippines
Holding company
Telecommunication
Philippine peso
Philippine peso
70.0
69.3
70.0
66.5
Pay TV Networks
Sky Vision Corporation (Sky Vision)
Sky Cable Corporation (Sky Cable)
Bisaya Cable Television Network,
Inc.(h) (i)
Bright Moon Cable Networks, Inc.(h)
Cavite Cable Corporation(h)
Cepsil Consultancy and Management
Corporation(h)
Davao Cableworld Network, Inc.(h) (o)
HM Cable Networks, Inc.(h)
HM CATV, Inc.(h)
Hotel Interactive Systems, Inc.(h)
Isla Cable TV, Inc.(h)
Moonsat Cable Television,
Inc.(h) (o)
Pilipino Cable Corporation (PCC)(h)
Satellite Cable TV, Inc.(h)
Sun Cable Holdings,
Incorporated (SCHI)(h)
Sun Cable Systems Davao,
Inc.(h) (i)
Sunvision Cable, Inc.(h)
Tarlac Cable Television Network, Inc.(h)
Telemondial Holdings, Inc.(h) (i)
JMY Advantage Corporation(h)
Cebu Cable Television, Inc.(h) (o) (p)
Suburban Cable Network, Inc.(h)
Pacific CATV, Inc. (Pacific)(h) (o) (w)
First Ilocandia CATV, Inc.(h) (o)
Mactan CATV Network, Inc.(h) (o) (p)
Discovery Mactan Cable, Inc.(h) (t)
Home-Lipa Cable, Inc.(h) (t)
New Businesses
ABS-CBN Theme Parks and Resorts
Holdings, Inc. (ABS-CBN Theme
Parks)
Play Innovations, Inc.(g)
Play Innovations Hungary Kft.
(Play Innovations)(j) (g)
iConnect Convergence, Inc.
Sapientis Holdings Corporation
(Sapientis)
Columbus Technologies, Inc. (CTI)(r)
ABS-CBN Convergence, Inc,
(ABS-C)(r) (s)
-4(a)
With branches in the Philippines and Taiwan

Through ABS-CBN Global
(c)
With branches in Italy and Spain
(d)
Subsidiary of ABS-CBN Europe
(e)
Nonstock ownership interest
(f)
Through ABS-CBN Interactive
(g)
Through ABS-CBN Theme Parks
(h)
Through Sky Cable
(i)
Subsidiary of SCHI
(j)
Considered as foreign subsidiary
(k)
Subsidiary of ABS-CBN International
(l)
With a branch in Luxembourg
(m)
With a regional operating headquarters in the Philippines
(n)
Through ABS-CBN Hungary
(o)
Subsidiary of PCC
(p)
Through Pacific
(q)
On September 13, 2013, the Parent Company, as the assignee, entered into a Deed of Assignment with the subscribers of RHC, as
the assignor, whereby the assignor assign, transfer and convey in a manner absolute and irrevocable, and free and clear of all liens
and encumbrances, unto the assignee all their rights, title to and interest in their subscription of 250,000 shares with a par value of
=
P 1.00 per share, or a total par value of =
P 250 thousand in RHC on which the amount of =
P 63 thousand has been paid.
(r)
Through Sapientis
(s)
Subsidiary of CTI. ABS-CBNs effective interest increased in 2013 as a result of the conversion of CTIs deposits for stock
subscription into capital stock of ABS-C. The difference between the fair value of the consideration transferred and carrying value
of net assets of ABS-C amounting to =
P 6 million was offset against Additional paid-in capital account in the equity section.
(t)
A subsidiary of Sky Cable where Sky Cable effectively owns more than 50% interest
(u)
In liquidation
(v)
On April 21, 2014, the BOD approved the Plan of Merger of ABS-CBN Films, Star Recording and Star Songs, with ABS-CBN Films
as surviving corporation. On April 30, 2014, ABS-CBN Films filed an application with the SEC for the merger. On June 24, 2014,
the SEC approved the said application effective June 30, 2014.
(w)
PCC acquired additional interest in 2013. The difference between the fair value of the consideration transferred and carrying
value of net assets of Pacific amounting to =
P 25 million was offset against Additional paid-in capital account in the equity
section.
(x) ABS-CBN has an economic interest of 24.8% in Sky Vision. In 2012, Lopez, Inc. executed a proxy in favor of ABS-CBN assigning
its voting rights in Sky Vision. As a result, ABS-CBN has a voting interest of 75.0% in Sky Vision. The proxy is coupled with interest
and irrevocable for five years renewable upon its expiration. Sky Vision is the holding company of Sky Cable, where the Parent
Company has an economic interest of 57.4%.
(b)
3. Material Noncontrolling Interests

Financial information of subsidiaries that have material noncontrolling interests is provided below.
Proportion of Equity Interest Held By Noncontrolling Interests
Company
Place of
Incorporation
June 30,
2014
(Unaudited)
December 31,
2013
(Audited)
(Percentage)
Sky Cable Corporation

and Subsidiaries
Philippines
42.6
42.6
-5-
Accumulated Balances of Material Noncontrolling Interests
Company
Sky Cable Corporation and Subsidiaries
June 30,
2014
(Unaudited)
P
=1,990,184
December 31,
2013
(Audited)
=2,041,861
P
Net Income Attributable to Noncontrolling Interests
Company
Sky Cable Corporation and Subsidiaries

(Unaudited)
2013
2014
=58,613
P
P
=48,106
The summarized financial information of Sky Cable is provided below. This information is based
on amounts before intercompany eliminations and after fair value adjustments.
Summarized Consolidated Statements of Financial Position
Cash and cash equivalents

Other current assets
Goodwill
Trademarks
Customer relationships
Other noncurrent assets
Current liabilities
Noncurrent liabilities
June 30,
2014
(Unaudited)
P
=1,232,551
1,869,084
4,491,817
1,111,784
452,954
8,850,149
(5,551,150)
(4,592,872)
December 31,
2013
(Audited)
=1,289,820
P
1,588,285
4,491,817
1,111,784
463,523
8,429,890
(4,915,003)
(4,999,856)
Summarized Consolidated Statements of Comprehensive Income
Revenue
Cost of services
General and administrative expenses
Finance costs
Foreign exchange loss
Interest income
Other expenses - net
Income before income tax
Provision for income tax
Net income

(Unaudited)
2013
2014
=3,409,103
P
P
=3,822,264
(2,134,134)
(2,539,178)
(1,003,446)
(1,060,735)
(122,430)
(118,661)
(13,583)
(13,069)
12,793
3,879
43,872
58,716
192,175
153,216
58,382
43,511
=133,793
P
P
=109,705
-6-

(Unaudited)
2013
2014
Attributable to
Equity holders of Parent Company
Noncontrolling interest
Net income
Other comprehensive income
Total comprehensive income
Attributable to
Equity holders of Parent Company
Noncontrolling interest
P
=112,538
(2,833)
P
=109,705
=136,117
P
(2,324)
=133,793
P
P
=109,705
P
=109,705
=133,793
P
58,238
=192,031
P
P
=112,538
(2,833)
P
=109,705
=194,355
P
(2,324)
=192,031
P
Summarized Consolidated Statements of Cash Flows
Operating
Investing
Financing

(Unaudited)
2013
2014
(P
=740,844)
P
=1,141,493
(765,750)
(1,013,123)
(217,630)
(185,580)
4. Seasonality of Operations
The Companys operations are not general affected by any seasonality or cyclicality.
5. Segment Information
The Executive Committee, the Companys chief operating decision maker, monitors operating
results of its business segments separately for the purpose of making decisions about resource
allocation and performance assessment. Segment performance is evaluated based on operating
profit or loss and is measured consistently with operating profit and loss in the interim condensed
consolidated financial statements.
On a consolidated basis, the Companys performance is evaluated based on consolidated net
income for the year, earnings before interest, taxes and depreciation and amortization (EBITDA)
and EBITDA margin. EBITDA margin pertains to EBITDA divided by gross revenues.
EBITDA and EBITDA margin are non-PFRS measures.
-7-
The following table shows the reconciliation of the consolidated EBITDA to consolidated net
income for six months ended June 30, 2014 and 2013:
Consolidated EBITDA
Depreciation and amortization
Amortization of intangible assets*
Finance costs**
Interest income
Provision for income tax
Consolidated net income

(Unaudited)
2013
2014
=4,130,263
P
P
=3,430,054
(1,504,104)
(1,405,610)
(493,689)
(468,809)
(399,384)
(547,732)
48,265
77,936
(490,582)
(90,867)
=1,290,769
P
P
=994,972
*Excluding amortization of movie in-process and filmed entertainment and story, video and publication and
record master
**Excluding bank service charges
Business Segment Data

The following tables present revenue and income information for the six months ended June 30, 2014 and 2013 and certain asset and liability information as
of June 30, 2014 and December 31, 2013 regarding business segments:
TV and Studio
2014
Revenue
External sales
Inter-segment sales
Revenue deductions
Total revenue
2013
Pay TV Networks
2014
2013
New Businesses
2014
2013
Eliminations
2014
2013
Consolidated
2014
2013
P
= 12,444,125
1,586,582
(88,173)
P
= 13,942,534
=13,586,061
P
920,298
(110,870)
=14,395,489
P
P
= 3,815,735
6,529
P
= 3,822,264
=3,409,103
P
=3,409,103
P
P
= 191,233
33,709
(10,259)
P
= 214,683
=275,064
P
=275,064
P
P
=
(1,626,820)
25,565
(P
= 1,601,255)
=
P
(920,298)
18,346
(P
=901,952)
P
= 16,451,093
(72,867)
P
= 16,378,226
=17,270,228
P
(92,524)
=17,177,704
P
P
= 2,057,326
(434,806)
21,964
73,291
=2,091,114
P
(263,713)
3,209
35,728
P
= 222,351
(118,661)
(13,069)
3,879
=271,523
P
(122,430)
(13,583)
12,793
(P
= 1,125,788)
(84)
6,480
766
(P
=486,630)
(14,953)
(20,697)
13
P
= 132,494
39,932
=156,965
P
269
(105,464)
(269)
P
= 1,286,383
(553,551)
55,307
77,936
=2,032,972
P
(400,827)
(136,535)
48,265
2,998
416,570
(338,109)
P
= 1,799,234
(27)
501,677
(456,359)
=1,911,629
P
58,716
(43,511)
P
= 109,705
43,872
(58,382)
=133,793
P
(4,310)
290,753
(P
= 832,183)
(4,251)
24,159
(P
=502,359)
(254,210)
(P
= 81,784)
(303,795)
(P
=252,294)
2,998
216,766
(90,867)
P
= 994,972
(27)
237,503
(490,582)
=1,290,769
P
Core Net Income
P
= 1,007,232
=1,303,029
P
EBITDA
P
= 3,430,054
=4,130,263
P
21%
24%
Results
Operating results
Finance costs
Foreign exchange gains (losses) - net
Interest income
Equity in net earnings (losses) of associates and joint
ventures
Other income - net
Income tax
Net income
EBITDA Margin
Assets and Liabilities
Operating assets
Investments in associates and joint ventures
Deferred tax assets net
Total assets
P
= 48,386,755
16,631,961
1,370,791
P
= 66,389,507
=41,784,551
P
15,934,999
1,282,929
=59,002,479
P
P
= 16,984,936
770,886
P
= 17,755,822
=16,373,444
P
738,897
=17,112,341
P
P
= 1,706,412
338,284
P
= 2,044,696
=1,774,615
P
181,364
=1,955,979
P
(P
= 4,898,461)
(16,432,372)
(10,761)
(P
= 21,341,594)
(P
=4,299,549)
(15,768,408)
(10,761)
(P
=20,078,718)
P
= 62,179,642
199,589
2,469,200
P
= 64,848,431
=55,633,061
P
166,591
2,192,429
=57,992,081
P
Operating liabilities
Interest-bearing loans and borrowings
Deferred tax liabilities - net
Total liabilities
P
= 12,714,878
16,567,680
67,739
P
= 29,350,297
=12,145,518
P
10,847,444
82,050
=23,075,012
P
P
= 5,693,068
3,737,371
9,840
P
= 9,440,279
=5,155,948
P
3,739,347
11,209
=8,906,504
P
P
= 1,669,389
138,271
P
= 1,807,660
=1,219,951
P
299,798
=1,519,749
P
(P
= 1,988,985)
(P
= 1,988,985)
(P
=1,431,941)
(P
=1,431,941)
P
= 18,088,350
20,305,051
138,271
77,579
P
= 38,609,251
=17,089,476
P
14,586,791
299,798
93,259
=32,069,324
P
P
= 809,155
742,687
1,723,924
=1,112,243
P
1,938,059
3,517,926
P
= 988,937
612,169
=1,715,255
P
1,089,035
P
= 116,336
70,566
=900,172
P
42,777
122,778
P
=
(323,278)
=
P
(584,729)
P
= 1,914,428
742,687
2,083,381
=3,727,670
P
1,980,836
4,145,010
73,771
22,959
154,390
177,501
20,903
23,136
249,064
223,596
Other Segment Information

Capital expenditures:
Property and equipment
Intangible assets
Noncash expenses other than
depreciation and amortization
Geographical Segment Data

The following tables present revenue and expenditure for the six months ended June 30, 2014 and 2013 and certain asset information regarding geographical
segments as of June 30, 2014 and December 31, 2013:
Philippines
2014
2013
United States
2014
2013
Others
2014
2013
Eliminations
2014
2013
Consolidated
2014
2013
Revenue
External sales
Inter-segment sales
Revenue deductions
Total revenue
P
= 13,864,809
1,626,820
(98,432)
P
= 15,393,197
=14,866,591
P
920,298
(110,870)
=15,676,019
P
P
= 1,870,021
P
= 1,870,021
=1,217,843
P
=1,217,843
P
P
= 716,263
P
= 716,263
=1,185,794
P
=1,185,794
P
P
=
(1,626,820)
25,565
(P
= 1,601,255)
=
P
(920,298)
18,346
(P
=901,952)
P
= 16,451,093
(72,867)
P
= 16,378,226
=17,270,228
P
(92,524)
=17,177,704
P
Assets
Operating assets
Investments in associates and joint ventures
Deferred tax assets - net
Total assets
P
= 59,767,630
16,631,961
2,357,769
P
= 78,757,360
=52,585,900
P
15,934,999
2,067,641
=70,588,540
P
P
= 2,449,112
122,192
P
= 2,571,304
=2,656,700
P
116,842
=2,773,542
P
P
= 4,861,361
P
= 4,861,361
=4,690,010
P
18,707
=4,708,717
P
(P
= 4,898,461)
(16,432,372)
(10,761)
(P
= 21,341,594)
(P
=4,299,549)
(15,768,408)
(10,761)
(P
=20,078,718)
P
= 62,179,642
199,589
2,469,200
P
= 64,848,431
=55,633,061
P
166,591
2,192,429
=57,992,081
P
Liabilities
Operating liabilities
Deferred tax liabilities - net
Total liabilities
P
= 18,689,329
20,267,408
138,271
77,579
P
= 39,172,587
=17,014,915
P
14,547,657
299,798
93,259
=31,955,629
P
P
= 2,625,451
37,643
P
= 2,663,094
=685,490
P
39,134
=724,624
P
(P
= 1,237,445)
(P
= 1,237,445)
=821,012
P
=821,012
P
(P
= 1,988,985)
(P
= 1,988,985)
(P
=1,431,941)
(P
=1,431,941)
P
= 18,088,350
20,305,051
138,271
77,579
P
= 38,609,251
=17,089,476
P
14,586,791
299,798
93,259
=32,069,324
P
P
= 1,884,400
742,687
=3,616,665
P
1,980,836
P
= 18,555
=48,396
P
P
= 11,473
=62,609
P
P
=
=
P
P
= 1,914,428
742,687
=3,727,670
P
1,980,836
Other Segment Information

Capital expenditures:
Property and equipment
Intangible assets
6. Cash and Cash Equivalents

June 30,
2014
(Unaudited)
P
=5,053,017
10,217,103
P
=15,270,120
Cash on hand and in banks

Cash equivalents
December 31,
2013
(Audited)
=6,159,544
P
4,457,311
=10,616,855
P
Cash in banks earn interest at the respective bank deposit rates. Cash equivalents are short-term
placements, which 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
placement rates.
Interest earned from cash and cash equivalents amounted to P
=78 million and P
=48 million for the
six months ended June 30, 2014 and 2013, respectively.
7. Trade and Other Receivables
Trade:
Airtime
Subscriptions
Others
Due from related parties (see Note 22)
Advances to employees and talents (see Note 22)
Others
Less allowance for doubtful accounts
June 30,
2014
(Unaudited)
December 31,
2013
(Audited)
P
=5,933,767
1,844,883
1,821,354
578,300
296,843
328,484
10,803,631
1,438,761
P
=9,364,870
=5,130,100
P
1,789,349
1,630,346
464,983
298,984
346,660
9,660,422
1,326,661
=8,333,761
P
Movements in the allowance for doubtful accounts are as follows:
Balance at January 1, 2013

Provisions
Write-offs and others
Balance at December 31, 2013
Provisions (see Note 25)
Write-offs and others
Balance at June 30, 2014
Trade
Airtime Subscriptions
=548,849
P
=274,329
P
14,147
323,000
(6,075)
(47,043)
556,921
550,286
5,415
149,636
(5,384)
(6,232)
=556,952
P
=693,690
P
Others
=107,024
P
90,912
(5,810)
192,126
28,833
(70,844)
=150,115
P
Nontrade
Total
=51,184
P
=981,386
P
4,035
432,094
(27,891)
(86,819)
27,328
1,326,661
9,236
193,120
1,440
(81,020)
=38,004 =
P
P1,438,761
The aging analysis of the unbilled airtime and subscription receivables follows:
Less than 30 days

31 to 60 days
June 30,
2014
(Unaudited)
P
=771,141
22,014
P
=793,155
December 31,
2013
(Audited)
=966,325
P
27,530
=993,855
P
June 30,
2014
(Unaudited)
December 31,
2013
(Audited)
P
=566,964
35,901
=156,907
P
62,189
37,984
7,500
P
=648,349
38,384
7,741
=265,221
P
8. Inventories
At net realizable value:

Merchandise inventory
Materials, supplies and spare parts
At cost Merchandise inventory
Office supplies
Inventory losses amounted to P

=21 million and P
=4 million for the six months ended June 30, 2014
and 2013, respectively (see Note 25). The cost of inventories carried at net realizable value
amounted to P
=723 million and P
=364 million as of June 30, 2014 and December 31, 2013,
respectively. Inventory costs, recognized under Cost of sales and services, amounted to
=89 million and P
P
=64 million for the six months ended June 30, 2014 and 2013, respectively
(see Note 24).
9. Other Current Assets
Creditable withholding and prepaid taxes

Advances to suppliers
Preproduction expenses
Prepaid license fees
Prepaid rent
Prepaid insurance
Other prepayments
June 30,
2014
(Unaudited)
P
=1,473,462
429,725
398,598
166,525
100,871
43,168
246,145
P
=2,858,494
December 31,
2013
(Audited)
=1,570,697
P
539,701
375,475
74,526
45,512
20,173
155,581
=2,781,665
P
Other prepayments mainly pertain to transponder services, membership dues and advertisement.
10. Property and Equipment

June 30, 2014 (Unaudited - Six Months)
Towers,
Transmission,
Television,
Land
Buildings Radio, Movie,
and Land
and and Auxiliary
Other Construction
Improvements Improvements
Equipment
Equipment
in Progress
Cost
Balance at beginning of period
Additions
Disposals/retirements
Reclassifications
Translation adjustments
Balance at end of period
Accumulated Depreciation and
Amortization
(see Notes 23, 24 and 25)
Reclassifications
Net Book Value
P
=702,942
48,929
2,922
(1,335)
753,458
16,365
2,220
136
18,721
P
=734,737
P
=10,942,592
30,552
(2,903)
101,273
(2,464)
11,069,050
P
=16,985,422
1,003,876
(168,062)
29,947
(6,050)
17,845,133
P
=9,946,047
273,333
(38,125)
98,802
(13,385)
10,266,672
5,494,287
9,276,082
6,736,327
234,561
(857)
(2,357)
5,725,634
P
=5,343,416
828,271
(163,783)
30
4,605
9,945,205
P
=7,899,928
339,992
(37,452)
(30)
(24,000)
7,014,837
P
=3,251,835
P
=1,481,963
557,738
(232,944)
4,117
1,810,874
Total
P
=40,058,966
1,914,428
(209,090)
(19,117)
41,745,187
P
=1,810,874
21,523,061
1,405,044
(202,092)
(21,616)
22,704,397
P
=19,040,790
December 31, 2013 (Audited - One Year)

Towers,
Transmission,
Television,
Land
Buildings Radio, Movie,
and Land
and and Auxiliary
Other
Construction
Improvements Improvements
Equipment
Equipment
in Progress
Cost
Balance at beginning of year
Additions
Transfer to investment properties
(see Note 11)
Reclassifications
Balance at end of year
Accumulated Depreciation and
Amortization
(see Notes 23, 24 and 25)
Reclassifications
Net Book Value
=636,808
P
166,439
(135,927)
29,699
5,923
702,942
9,569
6,790
6
16,365
=686,577
P
=10,713,747
P
32,044
=14,628,588
P
1,746,585
=9,775,900
P
566,852
(2,937)
186,617
13,121
10,942,592
(201,620)
785,084
26,785
16,985,422
(194,698)
(268,603)
66,596
9,946,047
4,996,969
7,426,980
6,646,787
489,041
(2,500)
10,777
5,494,287
=5,448,305
P
1,595,556
(173,789)
403,784
23,551
9,276,082
=7,709,340
P
621,732
(192,649)
(403,784)
64,241
6,736,327
=3,209,720
P
=994,975
P
1,215,750
Total
=36,750,018
P
3,727,670
(732,797)
4,035
1,481,963
(135,927)
(399,255)
116,460
40,058,966
=1,481,963
P
19,080,305
2,713,119
(368,938)
98,575
21,523,061
=18,535,905
P
Certain property and equipment of Sky Cable and PCC with a carrying value of P
=492 million as of
December 31, 2009 were pledged as collateral to secure the long-term debt of Sky Cable. On
October 26, 2010, the loans were fully paid. As of June 30, 2014, the release of security interest
on the pledged properties is still in process.
Certain property and equipment with cost amounting to P
=16,086 million and P
=15,044 million as of
June 30, 2014 and December 31, 2013, respectively, were fully depreciated but are still being used
by the Company.
Unamortized borrowing costs capitalized as part of property and equipment amounted to
=728 million and P
P
=742 million as of June 30, 2014 and December 31, 2013, respectively.
Property and equipment includes the following amounts where the Company is a lessee under a
finance lease (see Note 29):
June 30,
2014
(Unaudited)
P
=499,231
(405,924)
P
=93,307
Cost capitalized under finance lease

Accumulated depreciation
Net book value
December 31,
2013
(Audited)
=504,482
P
(405,655)
=98,827
P
11. Investment Properties

Cost and related accumulated depreciation of investment properties are as follows:
Land
Building
Total
Cost:
Accumulated depreciation:
Depreciation (see Note 25)
Net book value
P
=167,004
(602)
166,402
P
=35,797
(522)
35,275
P
=202,801
(1,124)
201,677
P
=166,402
5,885
566
(109)
6,342
P
=28,933
5,885
566
(109)
6,342
P
=195,335

Land
Building
Total
Cost:
Transfer from property and
equipment (see Note 10)
Additions
Accumulated depreciation:
Depreciation (see Note 25)
Net book value
=28,735
P
=28,735
P
=57,470
P
135,927
2,342
167,004
4,720
2,342
35,797
135,927
4,720
4,684
202,801
=167,004
P
4,397
1,080
408
5,885
=29,912
P
4,397
1,080
408
5,885
=196,916
P
In May 2013, the Parent Company transferred land with a carrying value of P
=136 million from
property and equipment to investment properties as it intends to hold the land for capital
appreciation (see Note 10).
As of June 30, 2014 and December 31, 2013, management believes that the carrying value of
investment properties amounting to P
=140 million and P
=141 million, respectively, approximates its
fair value.
Land and building with carrying value of P
=55 million and P
=56 million as of June 30, 2014 and
December 31, 2013, respectively, pertain to a parcel of land purchased by ABS-CBN
International, with a two-storey house constructed thereon, located in Redwood City, California,
USA. The real property which was acquired in July 2008 at a purchase price of US$1.4 million
(P
=67 million) was intended to be held by ABS-CBN International as investment properties. To
fund the acquisition, ABS-CBN International obtained a loan from Citibank, North America
amounting to US$1 million (P
=50 million) for which the property was pledged as collateral
(see Note 18). As of June 30, 2014 and December 31, 2013, the fair market value of land and
building, which is based on market price of similar properties within the area, amounted to
=64 million and P
P
=65 million, respectively.
The fair value of the investment properties is categorized under Level 3 of the fair value hierarchy
as the market for the identical or similar properties is not active.
Rental income derived from the investment properties amounted to P
=1 million for the six months
ended June 30, 2014 and 2013. Direct operating expenses, which consist mainly of depreciation,
amounted to P
=566 thousand and P
=525 thousand for the six months ended June 30, 2014 and 2013,
respectively.
12. Program Rights and Other Intangible Assets


Additions
Amortization (see Notes 23, 24 and 25)
Less current portion
Noncurrent portion

Additions
Amortization (see Notes 23, 24 and 25)
Less current portion
Noncurrent portion
Movie
In-Process
Program
and Filmed
Rights Music Rights Entertainment
P
=3,016,561
P
=138,758
P
=494,726
462,262
278,422
(426,603)
(2,968)
(214,446)
3,052,220
135,790
558,702
753,923
135,790
37,057
P
=2,298,297
P
=
P
=521,645
Program
Rights
=2,634,785
P
1,383,218
(1,001,442)
3,016,561
1,174,274
=1,842,287
P
Story,
Video and
Publication
and Record
Master
P
=11,630
2,003
(1,297)
12,336
6,639
P
=5,697
Customer
Licenses Relationships
P
= 1,005,715
P
=502,522
(1,055)
(28,569)
(373)
1,004,287
473,953
P
= 1,004,287
P
=473,953
Cable
Channels CPI
P
=459,968
459,968
P
=459,968
Production and
Distribution
Business Middle East
P
=73,500
(2,833)
(1,204)
69,463
P
=69,463
Total
P
=6,815,164
742,687
(677,771)
(1,577)
6,878,503
933,409
P
=5,945,094

Movie
Story,
In-Process
Video and
and Filmed Publication and
Customer
Music Rights Entertainment Record Master
Trademarks
Licenses Relationships
=143,682
P
=301,499
P
=9,860
P
=1,111,784
P
=965,049
P
=559,660
P
1,000
546,368
7,473
42,777
(5,924)
(353,141)
(5,703)
(2,111)
(57,138)
138,758
494,726
11,630
1,111,784
1,005,715
502,522
138,758
67,007
5,933
=
P
=427,719
P
=5,697
P
=1,111,784
P
=1,005,715
P
=502,522
P
Cable
Channels CPI
=459,968
P
459,968
=459,968
P
Production and
Distribution
Business Middle East
=73,140
P
(5,352)
5,712
73,500
=73,500
P
Total
=6,259,427
P
1,980,836
(1,430,811)
5,712
6,815,164
1,385,972
=5,429,192
P
Trademarks
P
=1,111,784
1,111,784
P
=1,111,784
Costs and related accumulated amortization of other intangible assets with finite life (except cable channels) are as follows:
Cost
Accumulated amortization
Net book value
Licenses
P
=42,777
(3,539)
P
=39,238
June 30, 2014 (Unaudited)

Production and
Cable
Distribution
Customer
Channels Business Relationships
CPI
Middle East
P
=612,940
P
=574,960
P
=212,358
(138,987)
(114,992)
(142,895)
P
=473,953
P
=459,968
P
=69,463
Total
P
=1,443,035
(400,413)
P
=1,042,622
Licenses
=42,777
P
(2,111)
=40,666
P
December 31, 2013 (Audited)

Production and
Cable
Distribution
Customer
Channels Business Relationships
CPI
Middle East
=612,940
P
=574,960
P
=212,358
P
(110,418)
(114,992)
(138,858)
=502,522
P
=459,968
P
=73,500
P
Total
=1,443,035
P
(366,379)
=1,076,656
P
13. Available-for-Sale Investments

Unrealized fair value gain (loss) on AFS investments
June 30,
2014
(Unaudited)
P
=219,191
2,455
P
=221,646
December 31,
2013
(Audited)
=224,101
P
(4,910)
=219,191
P
AFS investments consist mainly of investments in quoted (P

=131 million and P
=128 million as of
June 30, 2014 and December 31, 2013, respectively) and unquoted (P
=91 million as of June 30,
2014 and December 31, 2013) ordinary shares.
The unrealized fair value gain on AFS investments amounting to P
=2 million and P
=35 million for
the six months ended June 30, 2014 and 2013, respectively, were recognized in other
comprehensive income.
14. Investments in Associates and Joint Ventures

The following are the associate and joint ventures of the Company with remaining carrying value
as of June 30, 2014 and December 31, 2013:
Entity
June 30,
2014
(Unaudited)
December 31,
2013
(Audited)
Percentage of Ownership
Associate
Amcara Broadcasting Network, Incorporated
(Amcara)
Joint Ventures
A CJ O Shopping Corporation (A CJ O)
ALA Sports Promotions International, Inc.
(ALA Sports)
Services
49.0
49.0
Home shopping
50.0
50.0
Boxing promotions
44.0
44.0
Details and movement in the account are as follows:
Acquisition costs:
Additions
Accumulated equity in net losses:
Equity in net earnings (losses) during the year
June 30,
2014
(Unaudited)
December 31,
2013
(Audited)
P
=699,490
30,000
729,490
=561,528
P
137,962
699,490
(532,899)
2,998
(529,901)
P
=199,589
(520,502)
(12,397)
(532,899)
=166,591
P
Investments in:
Joint ventures
Associates
P
=158,669
40,920
P
=199,589
=125,600
P
40,991
=166,591
P
All the associates and joint ventures are incorporated in the Philippines. The associates and joint
ventures have no contingent liabilities or capital commitments as of June 30, 2014 and
December 31, 2013.
Condensed financial information of the joint ventures follows:
Current assets
Noncurrent assets
Current liabilities
Net equity
Revenue
Costs and expenses
Net income
June 30,
2014
(Unaudited)
P
=446,326
19,435
(132,307)
P
=333,454
December 31,
2013
(Audited)
=294,363
P
18,006
(72,223)
=240,146
P

(Unaudited)
2013
2014
=
P
P
=208,258
(202,366)
=
P
P
=5,892
Below is the reconciliation of the summarized financial information of the joint venture to the
carrying amount of the Parent Companys investments therein:
Net assets of A CJ O
Interest of the Parent Company in the
net assets of A CJ O
Investment in ALA Sports
Carrying amount of investments in joint ventures
June 30,
2014
(Unaudited)
P
=199,150
50%
99,575
59,094
P
=158,669
December 31,
2013
(Audited)
=191,200
P
50%
95,600
30,000
=125,600
P
a. Investments in Associates
As of June 30, 2014 and December 31, 2013, the remaining carrying value of investments in
associates pertains to Amcara. Investment in the other associate, Star Cinema Productions,
Inc., has been reduced to zero due to accumulated equity in net losses. The net cumulative
unrecognized net losses amounted to P
=17 million as of June 30, 2014 and December 31, 2013.
Condensed financial information of the associates follows:
Current assets
Noncurrent assets
Current liabilities
Net equity
Revenue
Costs and expenses
Net loss
June 30,
2014
(Unaudited)
P
=25,095
208,344
(149,929)
P
=83,510
December 31,
2013
(Audited)
=24,652
P
208,887
(149,883)
=83,656
P

(Unaudited)
2013
2014
=31,786
P
P
=17,156
(31,840)
(17,301)
(P
=54)
(P
=145)
Below is the reconciliation of the summarized financial information of the associates to the
carrying amount of the Parent Companys investment therein:
Net assets of associates

Interest of the Parent Company in the net assets of
the associates
Carrying amount of investments in associates
June 30,
2014
(Unaudited)
P
=83,510
49%
December 31,
2013
(Audited)
=83,656
P
49%
P
=40,920
=40,991
P
June 30,
2014
(Unaudited)
P
=1,980,477
187,690
140,286
108,416
P
=2,416,869
December 31,
2013
(Audited)
=2,046,069
P
168,271
186,775
178,918
=2,580,033
P
15. Other Noncurrent Assets
Tax credits with TCCs - net

Deposits and bonds
Deferred charges
Others
Amortization of deferred charges amounted to P

=35 million and P
=33 million as of June 30, 2014
and 2013, respectively (see Note 24).
16. Goodwill
Analysis of movement in goodwill follows:

Impairment loss (see Note 25)
Translation adjustment
June 30,
2014
(Unaudited)
P
=5,288,350
(3,684)
P
=5,284,666
December 31,
2013
(Audited)
=5,291,873
P
(20,061)
16,538
=5,288,350
P
Goodwill arose from the following acquisitions and business combination:
Sky Cable
CTI and ABS-C
ABS-CBN International
Sapientis
June 30,
2014
(Unaudited)
P
=4,491,817
567,836
215,812
9,201
P
=5,284,666
December 31,
2013
(Audited)
=4,491,817
P
567,836
219,496
9,201
=5,288,350
P
June 30,
2014
(Unaudited)
P
=2,339,473
December 31,
2013
(Audited)
=1,929,302
P
4,049,815
4,137,246
2,275,581
1,154,040
316,830
1,610,835
278,029
191,247
98,326
61,716
P
=12,375,892
1,734,725
1,130,477
269,830
1,209,093
278,029
161,835
210,606
270,863
=11,332,006
P
17. Trade and Other Payables
Trade
Accrued expenses:
Production costs and other expenses
Salaries and other employee benefits
(see Note 28)
Taxes
Interest
Deferred revenue
Installment payable
Dividend payable
Due to related parties (see Note 22)
Others
18. Interest-bearing Loans and Borrowings
Borrower
Parent Company
Sky Cable
PCC

Current
Noncurrent
Portion
Portion
Total
P
=79,895
P
=16,517,881
P
=16,597,776
30,949
2,927,988
2,958,937
6,000
782,274
788,274
859
36,784
37,643
P
=117,703
P
=20,264,927
P
=20,382,630

Current
Noncurrent
Portion
Portion
Total
=1,307,204
P
=9,583,156
P
=10,890,360
P
29,588
2,930,906
2,960,494
6,956
783,105
790,061
1,723
37,412
39,135
=1,345,471
P
=13,334,579
P
=14,680,050
P
Parent Company
The details of interest-bearing loans and borrowings of the Parent Company are as follows:
Bank loans
Term loans:
Bonds payable
Loan agreement
Syndicated loans
(see Note 29)

Current
Noncurrent
Portion
Portion
P
=
P
=
Total
P
=

Current
Noncurrent
Portion
Portion
Total
=400,000
P
=
P
=400,000
P
58,625
5,929,770
10,541,642
5,929,770
10,600,267
75,077
808,173
9,525,060
9,600,137
808,173
21,270
P
=79,895
46,469
P
=16,517,881
67,739
P
=16,597,776
23,954
=1,307,204
P
58,096
=9,583,156
P
82,050
=10,890,360
P
Bonds Payable. On January 23, 2014, the Philippine SEC approved the Parent Companys
offering of debt securities in the aggregate principal amount of up to P
=10 billion to be issued in
one or two tranches as approved by the BOD on November 29, 2013. The first tranche comprised
of fixed rate bonds amounting to P
=5 billion and an overallotment option of P
=1 billion (collectively
the Bonds).
On February 10, 2014 ABS-CBN Corporation issued fixed rate bonds amounting to P
=6 billion
with Banco de Oro (BDO) Capital & Investment Corporation, Bank of the Philippine Islands
(BPI) Capital and Hongkong and Shanghai Banking Corporation as joint-issue managers. The
bond has a term of seven years with a fixed interest rate of 5.335% p.a.. Interest on the bonds
shall be payable quarterly in arrears starting on May 10, 2014 for the first Interest Payment Date.
On the same date, the Parent Company listed the P
=6 billion worth of retail bonds in the Philippine
Dealing and Exchange Corporation. The Bonds had been rated PRS Aaa by the Philippine Rating
Services Corporation on December 27, 2013.
As of June 30, 2014, the Parent Company is in compliance with the provisions of this facility.
Unamortized debt issue cost, presented as a deduction from the Parent Companys long-term debt,
amounted to P
=70 million as of June 30, 2014.
Amortization of debt issue costs amounted to about P
=3 million for the six months ended June 30,
2014 (see Note 26).
Loan Agreement. On January 30, 2014, the BOD approved the refinancing of the Parent
Companys outstanding obligation under its existing P
=1,650 billion loan with Security Bank
Corporation (Security Bank) and Philippine National Bank.
On February 28, 2014, ABS-CBN secured the loan with term of four years with fixed rate
equivalent to 4.25% p.a.. The loan is intended to refinance existing indebtedness and fund
working capital requirements.
On March 7, 2014, ABS-CBN secured a P

=1 billion loan with Philippine American Life and
General Insurance Company to partially finance the Borrowers capital expenditure requirements
and general working capital purposes. The loan has a term of ten years and a fixed rate of 5.40%
p.a..
As of June 30, 2014, the Parent Company is in compliance with the provisions of this facility.
Details of unamortized debt issue cost, presented as a deduction from the Parent Companys
long-term debt, are as follows:
June 30,
2014
(Unaudited)
P
=100,733
P
=100,733
Transaction costs
Debt discount
December 31,
2013
(Audited)
=104,081
P
=40,108
P
144,189
Amortization of debt issue costs are as follows (see Note 26):
Debt discount (charged to interest expense)

Transaction costs

(Unaudited)
2013
2014
=24,834
P
P
=40,108
8,675
6,892
=33,509
P
P
=47,000
Schedule of Maturities and Repayments. Repayments of long-term debt based on nominal values
are scheduled as follows:
Year
2014
2015
2016
2017 and onwards
Loan
Agreement
P
=83,000
83,000
83,000
10,452,000
P
=10,701,000
Bonds
Payable
P
=
6,000,000
P
=6,000,000
Amount
P
=83,000
83,000
83,000
16,452,000
P
=16,701,000
Syndicated Loans. The P

=854 million syndicated loan facility contains provisions regarding the
maintenance of certain financial ratios and limiting, among others, the incurrence of additional
debt, the payment of dividends, making investments, the issuing or selling of the Parent
Companys capital stock or some of its subsidiaries, the selling or exchange of assets, creation of
liens and effecting mergers. The Company prepaid the loan on March 7, 2014.
Sky Cable
The details of interest-bearing loans and borrowings of the Sky Cable are as follows:
Bank loans
(see Note 29)

Current
Noncurrent
Portion
Portion
Total
P
=28,000
2,921,097
P
=2,949,097

Current
Noncurrent
Portion
Portion
Total
=26,781
P
=2,922,504
P
=2,949,285
P
2,949
P
=30,949
2,807
=29,588
P
6,891
P
=2,927,988
9,840
P
=2,958,937
8,402
=2,930,906
P
11,209
=2,960,494
P
The loan agreements provided for certain requirements and restrictions with respect to, among
others, the use of the proceeds, maintenance of certain financial ratios, incurrence of additional
debt, sale or lease of all or substantially all of Sky Cables assets, declaration of cash dividends or
enter into merger or consolidation, except where Sky Cable is the surviving entity and it does not
result to a change in control.
As of June 30, 2014 and December 31, 2013, Sky Cable is in compliance with the provisions and
all of the financial ratios required by its creditors in the agreement.
=2 million and P
=1 million for the six months
ended June 30, 2014 and 2013, respectively (see Note 26).
The schedule of debt repayment based on nominal values is as follows:
Year
2014
2015
2016
2017
2018 and onwards
Amount
P
=30,000
30,000
30,000
960,000
1,920,000
P
=2,970,000
PCC
Omnibus Notes Facility and Security Agreement. This loan is supported by deed of pledge
executed by Sky Cable and the Continuing Suretyship Agreement executed by Sky Vision. It is
payable in quarterly installments commencing on July 16, 2013 with a maturity on April 1, 2019.
The agreement provided for certain requirements and restrictions with respect to, among others,
the use of the proceeds, maintenance of certain financial ratios, incurrence of additional debt, sale
or lease of all or substantially all of PCCs assets, declaration of cash dividends or enter into
merger or consolidation, except where PCC is the surviving entity and it does not result to a
change in control.
As of June 30, 2014, PCC is in compliance with the provisions and all of the financial ratios
required by its creditors in the agreement.
=473 thousand and P
=394 thousand for the six
months ended June 30, 2014 and 2013, respectively (see Note 26).
The schedule of debt repayment of the loan is as follows:

Year
2014
2015
2016
2017
2018 and onwards
Amount
P
=4,000
8,000
8,000
8,000
764,000
P
=792,000
The investment property acquired for which the loan was availed was pledged as collateral
(see Note 11).
The schedule of debt repayment is as follows:
Year
2014
2015
2016
2017
20182028
Amount
P
=859
1,793
1,899
2,011
31,081
P
=37,643
19. Obligations for Program Rights

The amounts presented in the consolidated statements of financial position represent the face
amounts of the obligations, net of unamortized discounts, which represent the difference between
the face amounts and the fair values of the obligations upon initial recognition. Unamortized
discounts amounted to P
=42 million and P
=49 million as of June 30, 2014 and December 31, 2013,
respectively.
The schedule of repayments is as follows:
Year
Within one year
More than one year to five years
Amount
P309,374
=
263,152
=572,526
P
20. Other Noncurrent Liabilities

June 30,
2014
(Unaudited)
P
=259,211
60,063
1,464
9,536
P
=330,274
Customers deposits
Deferred credits
Asset retirement obligation
Others
December 31,
2013
(Audited)
=241,961
P
62,730
1,464
96,617
=402,772
P
21. Equity
Capital Stock
Details of authorized and issued capital stock as of June 30, 2014 and December 31, 2013 are as
follows:
Number of
Number of
Shares
Amount
Shares
Amount
(Amounts in Thousands, Except Number of Shares)
Common Shares - P
=1.0 par value
Authorized:
Reclassification to preferred shares
Issued:
Issuances
1,300,000,000
1,300,000,000
P
=1,300,000
P
=1,300,000
872,123,642
872,123,642
P
=872,124
P
=872,124
1,500,000,000
(200,000,000)
1,300,000,000
=1,500,000
P
(200,000)
=1,300,000
P
779,584,602
92,539,040
872,123,642
=779,585
P
92,539
=872,124
P

Number of
Number of
Shares
Amount
Shares
Amount
Preferred Shares - P
= 0.2 par value
Authorized:
Reclassification from common shares
1,000,000,000
1,000,000,000
P
=200,000
P
=200,000
1,000,000,000
1,000,000,000
=
P
200,000
=200,000
P
Issued:
Issuances
1,000,000,000
1,000,000,000
P
=200,000
P
=200,000
1,000,000,000
1,000,000,000
=
P
200,000
=200,000
P
Below are the Parent Companys track record of the registration of securities:
Date of SEC Order
Rendered Effective or
Permit to Sell
March 31, 1992
June 16, 1993

August 18, 1994
July 25, 1995
July 2, 1996
January 7, 2014
January 7, 2014
Event
Registered and Listed Shares
(Original Shares)
Initial Public Offering (Primary)
Secondary *
ESOP*
40% stock dividends
50% stock dividends
100% stock dividends
50% stock dividends
Issuance
Issuance
Authorized
Capital Stock
Issued Shares
Issue
Price
=200,000
P
200,000
200,000
200,000
200,000
500,000
1,500,000
1,500,000
1,500,000
1,500,000
111,327,200
12,428,378
18,510,517
1,403,500
49,502,074
86,620,368
259,861,104
259,861,104
57,836,900
34,702,140
P1.00
=
15.00
15.00
15.00
1.00
1.00
1.00
1.00
43.125
43.225
*Included in the 111,327,200 shares existing at the time of the IPO
The Parent Companys total number of common stockholders is 5,696 and 5,741 as of June 30,
2014 and December 31, 2013, respectively.
The Parent Companys total number of preferred shareholders is 191 as of June 30, 2014 and
December 31, 2013.
Retained Earnings
Unappropriated retained earnings available for dividend distribution is adjusted to exclude the
Parent Companys accumulated equity in net earnings of subsidiaries and associates amounting to
=838 million and P
P
=875 million for the six months ended June 30, 2014 and 2013, respectively.
Further, the Parent Companys loan agreement with its creditors limits the declaration of dividends
up to 50% of the net income after tax for the immediately preceding financial year. This limitation
has been in effect since 2004 resulting to an accumulation of unappropriated retained earnings
(see Note 18).
On January 30, 2014, the BOD approved the declaration and payment of 2% per annum cash
dividend on the Parent Companys preferred shares with a record date set for February 14, 2014
and payable on February 28, 2014.
On March 27, 2014, the BOD also approved the declaration of cash dividend of P
=0.60 per
common share or an aggregate amount of P
=523 million to all common stockholders of record as of
April 16, 2014 payable on May 7, 2014.
On April 23, 2013, the BOD approved the declaration of cash dividend of P
=0.40 per share or an
aggregate amount of P
=297 million to all stockholders of record as of May 10, 2013 payable on
June 6, 2013.
On February 27, 2013, the BOD approved the reversal of appropriated retained earnings
amounting to P
=8,300 million to unappropriated retained earnings. On the same date, the
Companys BOD approved the appropriation of retained earnings of P
=16,200 million, including
the specific projects and timeline. The appropriated retained earnings is set aside for capital
expenditures particularly for the purchase of Parent Companys property and equipment needed
for business operations and expansion over a period of five years.
PDRs Convertible to Common Shares

Details of PDRs convertible to common shares as of June 30, 2014 and December 31, 2013 are as
follows:
December 31, 2013
June 30, 2014
(Unaudited - Six Months)
(Audited - One Year)
Number of Shares
Amount
Number of Shares
Amount
Acquisitions
38,178,209
3,376,400
41,554,609
P
=1,164,146
99,950
P
=1,264,096
38,178,209
38,178,209
=1,164,146
P
=1,164,146
P
On February 25, 2014, the BOD approved the buy-back of ABS-CBN common shares or PDRs
issued by ABS-CBN Holdings in the aggregate amount of P
=500 million for a period of one year
from February 25, 2014.
22. Related Party Transactions

Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control.
Transactions with Related Parties
In addition to the related party transactions discussed in Note 18, significant transactions of the
Company with its associates and related parties follow:
Nature
Associate
Blocktime fees paid by the Parent Company and
Studio 23 to Amcara
Entities under Common Control
Expenses paid by ABS-C to Bayantel, a subsidiary of
Lopez, Inc., and other related parties
Expenses paid by Sky Cable to Bayantel and other
related parties
Expenses paid by the Parent Company and subsidiaries
to Goldlink Securities and Investigative Services, Inc.
(Goldlink), Bayantel and other related parties
Airtime revenue from Bayantel and A CJ O
Expenses and charges paid for by the Parent Company
which are reimbursed by the concerned
related parties
Termination cost charges of Bayantel to ABS-CBN
Global
Others
Donation to ABS-CBN Lingkod Kapamilya
Foundation,Inc. (ABS-CBN Lingkod Kapamilya,
formerly ABS-CBN Foundation, Inc.)

(Unaudited)
2013
2014
Blocktime fees
P
= 17,155
=15,702
P
Rent and utilities
155,712
127,691
Bandwith cost and

utilities expenses
Service fees and utilities
expenses
131,617
75,920
83,610
83,048
Airtime fees
Rent and utilities
30,240
8,513
19,523
14,850
Termination cost
4,409
20,127
18,992*
Donations for Typhoon

Yolanda victims
*Net proceeds from sale of Tulong Na, Tabang Na, Tayo Na shirts.
The related receivables from related parties, presented under Trade and other receivables
account and payables to related parties, presented under Trade and other payables account in the
consolidated statements of financial position, are as follows:
Relationship*
Terms
Due from
(see Note 7)
Bayantel
Affiliate
Amcara
Associate
First Philippine
Holdings
Corporation
(FPHC)
Inaec Aviations
Corporation
Affiliate
30 days upon receipt of Unsecured,

billings; noninterestno impairment
bearing
bearing
bearing
ABS-CBN Lingkod
Kapamilya
ALA Sports
Lopez Holdings
A CJ O
Star Cinema
Goldlink
Rockwell Land
Corporation
(Rockwell Land)
Others
Affiliate
30 days upon receipt of

billings; noninterestbearing
Corporate social 30 days upon receipt of
responsibility billings; noninterestsector of
bearing
ABS-CBN
Joint Venture
Affiliate
Joint Venture
Associate
Affiliate
Affiliate
Affiliate
30 days upon receipt;
noninterest-bearing
Conditions
P
= 292,136
=177,868
P
144,827
146,031
34,336
27,753
Unsecured,
no impairment
19,746
Unsecured,
no impairment
19,119
66,013
Unsecured,
no impairment
18,750
Unsecured,
no impairment
11,696
11,468
Unsecured,
no impairment
10,951
10,797
Unsecured,
no impairment
7,923
7,923
Unsecured,
no impairment
5,729
3,783
Unsecured,
no impairment
2,388
2,545
Unsecured,
no impairment
10,699
10,802
P
= 578,300
=464,983
P
P
= 55,858
=55,858
P
26,148
7,415
Total
Due to (see Note 17)
Sky Cable Net, Inc.
Affiliate
Lopez, Inc.
Ultimate parent
(Forward)

2013
2014
(Unaudited)
(Audited)
30 days upon receipt of Unsecured

30 days upon receipt of Unsecured
ABS-CBN Lingkod
Kapamilya
Beyond Cable
Holdings, Inc.
Others
Relationship*
Terms
Corporate social 30 days upon receipt of
responsibility
billings; noninterestsector of
bearing
ABS-CBN
Affiliate
Affiliates
Conditions
Unsecured

2013
2014
(Unaudited)
(Audited)
120,631
Unsecured
16,690
Unsecured
16,320
10,012
P
= 98,326
=210,606
P
Total
**Affiliate pertains to various entities under common control of Lopez, Inc., ultimate parent company.
a. The Parent Company own the program rights being aired in UHF Channel 23 of Amcara. The
Parent Company has an existing blocktime agreement with Amcara for its provincial
operations.
b. Sky Cable has entered into an agreement with Bayantel for the grant of Indefeasible Right of
Use (IRU) in certain capacities in the network. Operation and maintenance fees paid by Sky
Cable to Bayantel amounted to P
=5 million as of December 31, 2013 (see Note 29).
c. Advances to employees and talents amounted to P
=297 million and P
2014 and December 31, 2013, respectively (see Note 7).
d. Share-based payment amounted to nil and P
=34 million as of June 30, 2014 and December 31,
2013, respectively.
e. On April 21, 2014, BOD approved the arms length loan agreement entered by Parent
Company and Play Innovations, Inc. On May 28, 2014, the Parent Company extended credit
to Play Innovations, Inc. amounted to P
=500 million. The loan has a term of one year with
fixed rate equivalent to 6% p.a..
f.
Other transactions with related parties include cash advances for working capital
requirements.
Terms and Conditions of Transactions with Related Parties

The sales to and purchases from related parties are made at normal market prices. Outstanding
balances as of year-end are generally unsecured, interest-free and settlement occurs in cash, and
are collectible or payable on demand. For the six months ended June 30, 2014 and 2013, the
Company has not made any provision for doubtful accounts relating to amounts owed by related
parties. This assessment is undertaken each financial year by examining the financial position of
the related party and the market in which the related party operates.
Compensation of Key Management Personnel of the Company
Compensation (see Notes 23, 24 and 25)

Pension benefits (see Note 28)
Vacation leaves and sick leaves (see Note 28)
Termination benefits

(Unaudited)
2013
2014
=708,513
P
P
=811,183
33,120
54,032
14,906
25,148
101
15,978
=756,640
P
P
=906,341
23. Production Costs

(Unaudited)
2013
2014
Personnel expenses and talent fees
(see Notes 22 and 28)
Facilities-related expenses (see Notes 22 and 29)
Depreciation and amortization (see Note 10)
Travel and transportation
Amortization of program rights (see Note 12)
License and royalty
Set requirements
Catering and food expenses
Stationery and office supplies
Advertising and promotions
Other program expenses (see Notes 12 and 22)
P
=3,125,961
817,872
452,437
320,227
278,926
210,846
148,512
84,013
23,268
15,338
122,207
P
=5,599,607
=3,198,489
P
929,599
590,381
176,743
291,681
226,796
191,576
88,550
23,567
16,714
92,029
=5,826,125
P
Other program expenses consist of production expenses including, but not limited to, prizes and
other expenses related to the promotional activities of various programs during the year.
24. Cost of Sales and Services

Cost of services consists of the following:
Facilities-related expenses (see Notes 22 and 29)

Programming costs
Personnel expenses (see Notes 22 and 28)
Amortization of program rights (see Note 12)
Bandwidth costs
Transaction costs
Transportation and travel
License fees and royalties
Inventory costs (see Note 8)
Freight and delivery
Stationery and office supplies
Amortization of deferred charges (see Note 15)
Amortization of other intangible assets (see Note 12)
Interconnection costs (see Note 22)
Installation costs
(Forward)

(Unaudited)
2013
2014
=1,291,204
P
P
=1,266,689
736,891
856,821
621,923
707,813
626,244
697,635
229,008
229,069
166,071
154,458
85,871
123,985
79,381
82,127
59,861
76,027
48,868
69,807
44,181
69,086
38,252
37,942
39,309
37,723
32,519
34,865
20,860
20,967
49,813
20,502
26,587
15,177
Taxes and licenses

Set requirements
Catering and food expenses
Others (see Note 22)

(Unaudited)
2013
2014
7,181
11,076
10,397
10,951
12,312
10,365
51,121
83,031
=4,277,854
P
P
=4,616,116
Amortization of movie in-process and filmed entertainment are recorded as part of Cost of
services under each applicable expense account.
Cost of sales consists of the following:

Printing and reproduction
Inventory costs (see Note 8)
Handling and processing costs
Freight and delivery
Facilities related expenses (see Notes 22 and 29)
Others (see Notes 10 and 22)

(Unaudited)
2013
2014
=27,275
P
P
=22,628
36,161
21,827
19,474
19,993
6,618
5,564
3,873
2,955
5,208
2,299
6,414
433
804
191
144
20
13,665
6,365
=119,636
P
P
=82,275
25. General and Administrative Expenses

Contracted services
Facilities related expenses (see Notes 22 and 29)
Advertising and promotion
Depreciation and amortization (see Notes 10 and 11)
Taxes and licenses
Provision for doubtful accounts (see Note 7)
Research and survey
Entertainment, amusement and recreation
Donations and contributions
Inventory losses (see Note 8)
Amortization of other intangible assets (see Note 12)
Others (see Note 22)

(Unaudited)
2013
2014
=2,256,880
P
P
=2,395,955
507,459
577,323
309,139
358,788
306,908
261,649
287,335
255,518
219,149
223,393
212,109
193,120
135,378
153,821
112,412
115,852
33,976
43,443
17,581
25,950
3,983
20,963
15,077
14,458
503,731
153,612
=4,921,117
P
P
=4,793,845
Others consist mainly of stationery and office supplies and other expenses.
26. Other Income and Expenses

Finance Costs
Interest expense (see Note 18)

Amortization of debt issue costs (see Note 18)
Bank service charges

(Unaudited)
2013
2014
=387,897
P
P
=491,788
11,487
55,944
1,443
5,819
=400,827
P
P
=553,551
The following are the sources of the Companys interest expense:
Long-term debt (see Note 18)

Bonds payable (see Note 18)
Convertible note
Obligations under finance lease (see Note 18)
Bank loans (see Note 18)

(Unaudited)
2013
2014
=347,892
P
P
=354,078
124,483
8,528
9,182
7,755
3,535
23,722
510
=387,897
P
P
=491,788
Other Income (Charges)
Leasing operations (see Note 29)

Management fees
Dividend income
Gain on sale of property and equipment
Others - net

(Unaudited)
2013
2014
=118,363
P
P
=96,284
53,931
5,282
3,487
3,880
153
1,870
61,569
109,450
=237,503
P
P
=216,766
Others mainly consist of income from workshops and trainings, service fees and miscellaneous
income and expenses.
27. Income Tax and Registration with the Philippine Economic Zone Authority (PEZA)
The provision for (benefit from) income tax follows:
Current
Deferred

(Unaudited)
2013
2014
=816,402
P
P
=548,704
(325,820)
(457,837)
=490,582
P
P
=90,867
The components of consolidated net deferred tax assets and liabilities of the Company are as
follows:
Deferred tax assets - net:

Accrued pension obligation and
other employee benefits
NOLCO
Allowance for doubtful accounts
Excess of the purchase price over the fair value
of net assets acquired
Customers deposits
Capitalized interest, duties and taxes
(net of accumulated depreciation)
Accrued expenses
Unearned revenue
Allowance for impairment loss on property and
equipment
MCIT
Net unrealized foreign exchange gain
Allowance for inventory obsolescence
Gain on acquisition and exchange of
debt (net of accretion)
Others
Deferred tax liabilities Excess of the fair value over the book value of
net assets acquired
June 30,
2014
(Unaudited)
December 31,
2013
(Audited)
P
=1,272,014
486,399
319,179
=1,173,192
P
190,655
288,389
258,557
230,353
306,958
153,329
(218,393)
176,964
59,334
(222,666)
216,860
51,668
50,784
34,238
(11,597)
2,605
54,608
24,763
(19,515)
8,078
(191,237)
P
=2,469,200
(84,536)
50,646
=2,192,429
P
P
=138,271
=299,798
P
The details of the deductible temporary differences, NOLCO and MCIT of certain subsidiaries for
which no deferred tax assets were recognized are as follows:
Allowance for doubtful accounts

NOLCO
Allowance for decline in value of inventories
Accretion of interest expense
Allowance for impairment loss on property and
equipment
Unearned revenue
MCIT
Accrued pension obligation and others
June 30,
2014
(Unaudited)
P
=1,106,649
404,774
155,724
49,575
December 31,
2013
(Audited)
=1,052,820
P
386,752
144,315
165,249
22,790
12,800
9,926
152,503
P
=1,914,741
104,736
4,077
9,167
153,421
=2,020,537
P
MCIT of the subsidiaries amounting to P

=44 million can be claimed as tax credit against future
RCIT as follows:
Year Paid
2011
2012
2013
2014
Expiry Dates
December 31, 2014
December 31, 2015
December 31, 2016
December 31, 2017
Amount
=2,379
P
28,717
11,879
1,417
=44,392
P
NOLCO of the subsidiaries amounting to P

=1,991 million can be claimed as deductions from future
taxable income as follows:
Year Incurred
2011
2012
2013
2014
Expiry Dates
December 31, 2014
December 31, 2015
December 31 ,2016
December 31 ,2017
Amount
P176,227
=
204,312
631,690
978,358
=1,990,587
P
As of June 30, 2014 and December 31, 2013, deferred tax liability on undistributed earnings of
ABS-CBN Global, holding company of the Parent Companys foreign subsidiaries, amounting to
=1,323 million and P
P
=1,299 million, respectively, has not been recognized because the Parent
Company has control over such earnings, which have been earmarked for expansion in the
Companys foreign operations and are not expected to reverse in the foreseeable future.
The reconciliation of statutory tax rate to effective tax rates applied to income before income tax is
as follows:
Statutory tax rate

Additions to (reduction in) income taxes resulting
from the tax effects of:
Interest income subjected to final tax
Nondeductible interest expense
Others (mainly income subject to different tax
rates and change in unrecognized deferred
tax assets)
Effective tax rates

(Unaudited)
2013
2014
30%
30%
(7)
2
(2)
1
(17)
8%
(1)
28%
Registration with the PEZA

On February 13, 2014, the PEZA approved the application of Big Dipper for entitlement to
Pioneer Status. Consequently, Big Dippers income tax holiday period shall be extended until
October 31, 2015.
Total income tax holiday incentives availed by Big Dipper amounted to P
=142 million and P
=226
million as of June 30, 2014 and December 31, 2013, respectively.
28. Pension and Other Employee Benefits

This account consists of:
Pension obligation
Other employee benefits
Current portion
Noncurrent portion
June 30,
2014
(Unaudited)
P
=3,508,622
1,547,223
P
=5,055,845
December 31,
2013
(Audited)
=3,371,676
P
1,498,364
=4,870,040
P
P
=646,022
4,409,823
P
=5,055,845
=678,958
P
4,191,082
=4,870,040
P
a. Pension Plan
The Companys pension plans are composed of funded (Parent Company and Sky Cable) and
unfunded (other subsidiaries), noncontributory and actuarially computed pension plans, except
for ABS-CBN International (contributory) covering substantially all of its employees. The
benefits are based on years of service and compensation during the last year of employment.
The Parent Companys retirement plan is a noncontributory defined benefit plan covering all
regular employees. Benefits are based on the employees years of service and final monthly
salary. Actuarial valuation is performed every year-end.
The following tables summarize the components of consolidated net pension expense
recognized in the consolidated statements of income and accrued pension obligation
recognized in the consolidated statements of financial position:
Net Pension Expense
Current service cost

Net interest cost
Net pension expense

(Unaudited)
2013
2014
=324,788
P
P
=154,729
139,195
132,633
=463,983
P
P
=287,362
Accrued Pension Obligation
Present value of obligation

Fair value of plan assets
Accrued pension obligation
June 30,
2014
(Unaudited)
P
=5,366,867
(1,858,245)
P
=3,508,622
December 31,
2013
(Audited)
=4,952,976
P
(1,581,300)
=3,371,676
P
The Parent Company and Sky Cable expect to contribute P

=200 million and P
=97 million,
respectively, to the retirement fund in 2014.
The major categories of plan assets as a percentage of the fair value of total plan assets are as
follows:
June 30,
2014
(Unaudited)
December 31,
2013
(Audited)
(Percentage)
Investment in fixed/floating rate treasury note

Investment in government securities and bonds
Investment in stocks
Others
14.3
5.9
76.2
3.6
100.0
16.9
6.2
72.9
4.0
100.0
The ranges of principal assumptions used as of January 1, 2014 and 2013 in determining
pension benefit obligations for the Companys plans are shown below:
Discount rate
Future salary rate increases
June 30,
2014
(Unaudited)
4.6%6.1%
4.0%11.0%
December 31,
2013
(Audited)
4.6%6.1%
4.0%11.0%
ABS-CBN
On March 11, 2010, the BOD approved the re-constitution of the retirement committee who
will actively manage the pension fund.
The retirement committee is composed of five members, four of whom are executive staff of
the Parent Company and beneficiaries of the plan.
The retirement committee of the beneficial trust fund uses an investment approach with the
objective of maximizing the long-term expected return of plan assets. The plans investment
portfolio seeks to achieve regular income, long-term capital growth and consistent
performance over its own portfolio benchmark. In order to attain this objective, the Trustees
mandate is to invest in a diversified portfolio of fixed income and equities. The investment
portfolio consists of investment in equity and fixed income securities of 81% and 19% as of
June 30, 2014 and 78% and 22% as of December 31, 2013.
On July 27, 2010, the retirement committee of the retirement fund approved the following:
a. Acquisition of ABS-CBN securities to fully fund the retirement fund deficiency;
b. Allow the acquisition of Lopez Holdings shares and shares of other listed companies;
c. Migrate to an investment management account arrangement in lieu of a Trusteed
arrangement with BDO; and
d. Appoint an investment officer of the retirement plan.
The market value of ABS-CBN asset allocation as at June 30, 2014 and December 31, 2013
are as follows:
Fixed Income:
Short-term
Medium and long-term:
Government securities
Corporate bonds
Preferred shares
Equities:
Investment in shares of stock and other
securities of related parties
Common shares and unit investment trust fund
(UITF)
June 30,
2014
(Unaudited)
December 31,
2013
(Audited)
P
=37,288
=29,279
P
206,870
81,014
5,195
202,755
78,353
5,450
1,161,829
935,900
242,294
P
=1,734,490
206,584
=1,458,321
P
Short-term Fixed Income. Short-term fixed income investment includes time deposit, special
deposit account and special savings account with interest ranging from 0.5% to 2.3% and
2.0% to 4.0% as of June 30, 2014 and December 31, 2013, respectively.
Medium and Long-term Fixed Income. Investments in medium and long-term fixed income
include Philippine peso-denominated bonds, such as government securities, corporate bonds,
notes and debt securities and equity investment in preferred shares.
Government securities include treasury bills and fixed-term treasury notes bearing interest
ranging from 2% to 11% and 2% to 9% as of June 30, 2014 and December 31, 2013,
respectively. These securities are fully guaranteed by the government of the Republic of the
Philippines.
Investment in unsecured corporate bonds has a total cost of P
=78 million and P
=77 million with
terms ranging from 5 to 15 years as of June 30, 2014 and December 31, 2013. Yield to
maturity rate ranges from 4% to 8% and 7% to 8% as of June 30, 2014 and December 31,
2013, respectively. Total gain amounted to P
2013.
Investment in preferred stock refers to 50,000 shares with a total cost of P
=5 million as of June
30, 2014 and December 31, 2013. Gain from investments amounted to P
=129 thousand and
=450 thousand of June 30, 2014 and December 31, 2013, respectively. The market value of
P
preferred stock is P
=5 million as of June 30, 2014 and December 31, 2013. In 2013, option to
redeem the 170,000 shares was exercised.
Equities. These pertain to investments in shares of stock and other securities of related parties
and other companies listed in the PSE.
Investments in Shares of Stock and Other Securities of Related Parties. These pertain to
investments in ABS-CBN PDRs and common shares and Lopez Holdings and Rockwell Land
common shares.
ABS-CBN common shares

ABS-CBN PDRs
Lopez Holdings
Rockwell Land
Number of
Shares
23,800
19,704,158
69,777,680
17,103,433
106,609,071
Cost
P
=704
765,281
230,137
34,476
P
=1,030,598
Market Value
P
=881
755,654
373,311
31,983
P
=1,161,829
Unrealized
Gain (Loss)
P
=176
(9,627)
143,174
(2,493)
P
=131,230
ABS-CBN common shares

ABS-CBN PDRs
Lopez Holdings
Rockwell Land
Number of
Shares
23,800
19,704,158
69,777,680
17,103,433
106,609,071
Cost
=704
P
765,281
230,137
34,476
=1,030,598
P
Market Value
=772
P
630,533
279,111
25,484
=935,900
P
Unrealized
Gain (Loss)
=68
P
(134,748)
48,974
(8,992)
(P
=94,698)
Additional PDRs were acquired in 2011 and 2012 in open market at an average price of
=29.92 each. This brings the average price of all PDRs acquired to about P
P
=39.08 each. In
2013, the retirement fund purchased additional 76,000 shares of PDRs at P
=42.12, which
increased total PDRs shares held in trust with BDO to 580,058 shares. As of June 30, 2014
and December 31, 2013, the value of each PDR is at P
=32.00 and P
=38.35, respectively.
Total gain (loss) from investments in shares of stock and other securities of related parties
amounted to P
=131 million and (P
=95) million as of June 30, 2014 and December 31, 2013,
respectively.
Investments in Common Shares and UITF. Common shares pertain to 11,084,743 shares and
6,610,649 shares listed in the PSE as of June 30, 2014 and December 31, 2014, respectively,
with market value of P
=232 million and P
2013, respectively. UITF has a market value of P
=10 million and P
2014 and December 31, 2013, respectively. Total gain from these investments amounted to
=30 million and P
P
=12 million as of June 30, 2014 and December 31, 2013, respectively.
Sky Cable
Sky Cables retirement benefit fund is being maintained by trustee banks, BDO and Rizal
Commercial Banking Corporation.
In 2013, PCC contributed P
=540 thousand to the retirement fund and no withdrawals were
made during the year.
The carrying value of Sky Cable asset allocation as of June 30, 2014 and December 31, 2013
are as follows:
Short-term fixed income

Investment in medium and long-term fixed income:
Government securities
Corporate bonds
Investment in shares of stock of related parties:
First Gen Corporation (First Gen)
Common shares
June 30,
2014
(Unaudited)
P
=24,599
December 31,
2013
(Audited)
=20,258
P
58,197
29,128
66,869
23,128
7,200
4,631
P
=123,755
7,270
5,454
=122,979
P
Short-term Fixed Income. Short-term fixed income investment includes time deposit, special
deposit account and special savings account with interest ranging from 2.0% and 2.3% to
6.7% as of June 30, 2014 and December 31, 2013, respectively.
Medium and Long-term Fixed Income. Investment in medium and long-term fixed income
include Philippine peso-denominated bonds, such as government securities, corporate bonds,
notes and debt securities.
Investment in Government Securities. Investment in government securities include treasury
bills and fixed-term treasury notes bearing interest ranging from 1.6% to 11.1% and 3.3% to
11.1% as of June 30, 2014 and December 31, 2013, respectively. These securities are fully
guaranteed by the government of the Republic of the Philippines. Total gain from investments
in government securities amounted to P
=4 million and P
=6 million as of June 30, 2014 and
December 31, 2013, respectively.
Investment in Corporate Bonds. A total cost of P
=24 million and P
=14 million unsecured bonds
with terms ranging from 5 to 10 years and 3 to 25 years as of June 30, 2014 and December 31,
2013, respectively. Yield to maturity rate ranges from 4.6% to 8.5% and 4.6% to 8.5% with a
gain of P
=628 thousand as of June 30, 2014 and December 31, 2013.
Investments in Shares of Stock of Related Parties. These refer to investments in preferred
shares of First Gen and FPHC, which are listed in the PSE.
Total cost and market value of investments in shares of stock of First Gen amounted to
=7 million as of June 30, 2014 and December 31, 2013. Total gain from investments in
P
preferred shares amounted to P
=160 million and P
=900 thousand as of June 30, 2014 and
December 31, 2013, respectively.
b. Other Employee Benefits

Other employee benefits consists of accumulated employee sick and vacation leave
entitlement.
Net Benefit Expense

Interest cost
Net benefit expense

(Unaudited)
2013
2014
=43,955
P
P
=133,070
15,472
33,676
=59,427
P
P
=166,746
Consolidated changes in the present value of the defined benefit obligation are as follows:
Defined benefit obligation at beginning of year

Interest cost
Actuarial loss
Benefits paid
Defined benefit obligation at end of year
June 30,
2014
(Unaudited)
P
=1,498,364
133,070
33,676
(117,887)
P
=1,547,223
December 31,
2013
(Audited)
=1,238,328
P
370,456
67,352
(132,232)
(45,540)
=1,498,364
P
The sensitivity analysis below has been determined based on reasonably possible changes of each
significant assumption on the defined benefit obligation as of the end of the reporting period,
assuming all other assumptions were held constant:
December 31, 2013
(Audited)
Increase (Decrease) in
Defined Benefit Obligation
Discount rate:
Increase by 1%
Decrease by 1%
Future salary increases:
Increase by 1%
Decrease by 1%
(P
=615,231)
724,800
616,239
(530,890)
Shown below is the maturity analysis of the undiscounted benefit payments:
Year
2014
2015 to 2018
2019 to 2023
2024 and beyond
December 31,
2013
=293,437
P
751,362
2,730,221
29,240,963
The average duration of the defined benefit obligation at the end of the period is 21 years.
29. Commitments
Deal Memorandum with DirecTV
ABS-CBN Internationals share in the subscription revenue earned from subscribers that have
migrated to DirectTV amounted to P
=318 million and P
=292 million for the six months ended
June 30, 2014 and 2013, respectively.
Operating Lease
As Lessee. The Parent Company and subsidiaries lease office facilities, space and satellite
equipment. Future minimum rental payable under non-cancelable operating leases are as follows:
Within one year

After one year but not more than five years
June 30,
2014
(Unaudited)
P
=503,465
414,726
P
=918,191
December 31,
2013
(Audited)
=509,199
P
618,230
=1,127,429
P
As Lessor. The Parent Company has entered into commercial property leases on its building,
consisting of the Parent Companys surplus office buildings. These non-cancelable leases have
remaining non-cancelable lease terms of 3 to 5 years. All leases include a clause to enable upward
revision of the rental charge on a predetermined rate.
Future minimum rental receivable under non-cancelable operating leases are as follows:
Within one year

June 30,
2014
(Unaudited)
P
=50,565
197,102
P
=247,667
December 31,
2013
(Audited)
=111,913
P
157,931
=269,844
P
Obligations under Finance Lease

Future minimum lease payments under finance leases and hire purchase contracts together with
the present value of the net minimum lease payments are as follows:
Within one year

Total minimum lease payments
Less amounts representing finance charges
Present value of minimum lease payments
Less current portion (see Note 18)
Noncurrent portion (see Note 18)
June 30,
2014
(Unaudited)
P
=29,052
57,541
86,593
9,014
77,579
24,219
P
=53,360
December 31,
2013
(Audited)
=32,574
P
72,852
105,426
12,167
93,259
26,761
=66,498
P
Sky Cable has entered into an agreement with Bayantel for the grant of IRU in certain capacities
in the network. As of December 31, 2013, Sky Cable has fully paid Bayantel for the grant of IRU
amounting to P
=82 million (see Note 22). There are no future lease payments expected from this
agreement.
Purchase Commitments
Sky Cable has commitments with various program suppliers for a period of 1 to 5 years. Channel
license fees are based on fixed and variable rates. Estimated fees for the next four years are as
follows:
Year
Within one year
Amount*
=477,815
P
1,585,337
*Includes variable fees based on the number of active subscribers as of December 31, 2013.
The estimated fees include channel license fees contracted by Sky Cable for its subsidiaries,
amounting to P
=106 million, for which Sky Cable will be reimbursed.
Network Sharing Agreement
On May 28, 2013, ABS-CBN announced its network sharing agreement with Globe Telecom, Inc.
(Globe). This partnership enables ABS-CBN to deliver ABS-CBN content and offer traditional
telecommunication services on mobile devices. Through the network-sharing agreement, Globe
will provide capacity and coverage on its existing cellular mobile telephony network to ABS-C on
a nationwide basis. The parties may also share assets such as servers, towers and switches.
Construction Contracts
Play Innovations, Inc., a subsidiary of ABS-CBN Theme Parks, entered into various construction
contracts for the development of an educational theme park under the franchise license of
KidZania brand in the Philippines. Total contract value committed for the significant construction
contracts amounted to P
=350 million as of December 31, 2013.
Channel Distribution Agreement
ABS-CBN Middle East entered into an agreement with Orbit Showtime Network (OSN) effective
November 1, 2013, whereby ABS-CBN Middle East has awarded the rights of distribution of its
content to OSN against a license fee at the predetermined rate per subscriber as per the agreement,
subject to minimum license fee per month.
30. Financial Risk Management Objectives and Policies

Capital Management
The Companys capital structure pertains to the mix of long-term sources of funds. When the
Company expands, it needs capital, and that capital can come from debt or equity.
The primary objective of the Companys capital management is to ensure that it maintains healthy
capital ratios and strong credit ratings while viably supporting its business to maximize
shareholder value.
The Companys approach focuses on efficiently allocating internally generated cash for
operational requirements and investments to grow the existing business as well as to deliver on its
commitment of a regular dividend payout at a maximum of 50% of the previous years net
income. Shortages if any and acquisitions or investments in new business are funded by the
incurrence of additional debt largely capped by existing loan covenants on financial ratios.
As evidenced by the quarterly financial certificates that the Company issued to its lenders, all
financial ratios are within the required limits all throughout 2014 and 2013 as follows:
2014 Financial Ratios
Loan Agreement
Debt to equity
Debt service coverage ratio
2013 Financial Ratios
Loan Agreement
Debt to equity
SCA Facility, BDO Facility,
Syndicated Loan Facility,
Combined Facility
Agreements
Debt to earnings before income tax,
depreciation and amortization
Earnings before income tax to
financing cost
Required
Less than or equal to 2.50
Greater than or equal to 1.10
Required
1st Quarter
2nd Quarter
1.51
15.73
1.47
14.80
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter

1.31
8.08
1.17
11.64
1.14
7.32
1.24
6.46
1.61
1.86
1.93
2.17
5.00
4.00
3.88
4.23
The following table shows the financial ratios that Sky Cable is required to maintain in accordance
with the DRA:
Financial ratios
Total liabilities to equity
Required
Maintain at all times not exceeding 2:1
Maintain at least 1.5 times
2013
0.97
6.04
2014
1.29
8.25
31. Financial Assets and Liabilities

The following tables set forth the carrying amounts and estimated fair values of consolidated
financial assets and liabilities recognized as of June 30, 2014 and December 31, 2013. There are
no material unrecognized financial assets and liabilities as of June 30, 2014 and December 31,
2013.
Financial Assets
Loans and receivables:
Deposits (included under Other
noncurrent assets account in the
consolidated statements of financial
position)
AFS investments - quoted
Financial Liabilities
Other financial liabilities at amortized cost:
Convertible note
Customers deposits (included as part of
Other noncurrent liabilities)
Carrying
Amount
Fair Value
Level 1
Level 2
Level 3
P
=140,663
130,811
P
=271,474
P
=128,110
130,811
P
=258,921
P
=
130,811
P
=130,811
P
=
P
=
P
=128,110
P
=128,110
P
=20,382,630
530,779
252,062
P
=20,033,969
572,526
300,771
P
=
P
=
572,526
P
=20,033,969
300,771
259,211
P
=21,424,682
309,555
P
=21,216,821
P
=
P
=572,526
309,555
P
=20,644,295
Financial Assets
Loans and receivables:
Deposits (included under Other
noncurrent assets account in the
consolidated statements of financial
position)
AFS investments - quoted
Financial Liabilities
Other financial liabilities at amortized cost:
Convertible note
Customers deposits (included as part of
Other noncurrent liabilities)
Carrying
Amount
Fair Value
Level 1
Level 2
Level 3
=121,934
P
128,359
=250,293
P
=109,892
P
128,359
=238,251
P
=
P
128,359
=128,359
P
=
P
=
P
=109,892
P
=109,892
P
=14,680,050
P
725,205
245,195
=16,306,382
P
774,205
281,678
=
P
=
P
774,205
=16,306,382
P
281,678
269,616
=15,920,066
P
290,445
=17,652,710
P
=
P
=774,205
P
290,445
=16,878,505
P
Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of
financial instrument for which it is practicable to estimate such value:
Cash and Cash Equivalents, Trade and Other Receivables and Trade and Other Payables. Due to
the short-term nature of transactions, the fair values of these instruments approximate the carrying
amounts as of financial reporting date.
Deposits. Fair value of these instruments is computed by discounting future cash flows using the
risk-free interest rates for similar type of instruments adjusted for credit risk.
AFS Investments. The fair values of publicly-traded instruments were determined by reference to
market bid quotes as of financial reporting date. Investments in unquoted equity securities for
which no reliable basis for fair value measurement is available are carried at cost, net of any
impairment.
Interest-bearing Loans and Borrowings. Fair value was computed based on the following:
Term loans
Other variable rate loans
Fair Value Assumptions

Estimated fair value is based on the discounted value of
future cash flows using the applicable risk-free rates for
similar types of loans adjusted for credit risk. The interest
rates used to discount the future cash flows have ranged from
0.4% to 3.7%.
The face value approximates fair value because of recent and
frequent repricing (i.e., 3 months) based on market
conditions.
Obligations for Program Rights. Estimated fair value is based on the discounted value of future
cash flows using the applicable risk-free rates for similar types of loans adjusted for credit risk.
Convertible Note. Fair value was computed based on the discounted value of future cash flows
using the PDST-R2 rate plus 1% credit spread.
Customers Deposits. The fair values were calculated by discounting the expected future cash
flows at prevailing PDST-F rate plus applicable credit spread ranging from 2.85% to 4.98% and
1.0% to 4.8% in as of June 30, 2014 and December 31, 2013, respectively.
There were no transfers between levels in the fair value hierarchy as of June 30, 2014 and
December 31, 2013.
Offsetting of Financial Assets and Liabilities
There is no offsetting of financial assets and liabilities as of June 30, 2014 and December 31,
2013.
32. 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 (net of
PDRs) during the period.
The following table presents information necessary to calculate EPS:
(Unaudited)
2013
2014
Net income attributable to equity holders of the
Parent Company
Dividends on preferred shares
(a) Net income attributable to common equity
holders of the Parent Company
(b) Weighted average of shares outstanding:
At beginning of year
Issuances of common shares (see Note 21)
Acquisitions of PDRs (see Note 21)
At end of year
Basic/diluted EPS (a/b)
P
=1,161,983
(3,333)
=1,343,876
P
(2,667)
P
=1,158,650
=1,341,209
P
797,137,500
(2,059,417)
795,078,083
741,406,393
15,423,173
756,829,566
P
=1.457
=1.772
P
The Company has no dilutive potential common shares outstanding, therefore basic EPS is the
same as diluted EPS.
33. Note to Consolidated Statements of Cash Flows

Noncash investing activity pertains to acquisition of program rights amounted to P
=75 million and
=218 million as of June 30, 2014 and 2013, respectively.
P
34. Contingent Liabilities and Other Matters

a. The Parent Company has contingent liabilities with respect to claims and lawsuits filed by
third parties. The events that transpired last February 4, 2006, which resulted in the death of
71 people and injury to about 200 others led the Parent Company to shoulder the burial
expenses of the dead and medical expenses of the injured, which did not result in any direct or
contingent financial obligation that is material to the Parent Company. The Parent Company
has settled all of the funeral and medical expenses of the victims of the tragedy. Given the
income flows and net asset base of the Parent Company, said expenses do not constitute a
material financial obligation of the Parent Company, as the Parent Company remains in sound
financial position to meet its obligations.
As of June 30, 2014, the claims, including those in connection with the events of February 4,
2006, are still pending and remain contingent liabilities. While the funeral and medical
expenses have all been shouldered by the Parent Company, there still exist claims for
compensation for the deaths and injuries, the amount of which have not been declared and
cannot be determined with certainty at this time. Management is nevertheless of the opinion
that should there be any adverse judgment based on these claims, this will not materially affect
the Parent Companys financial position and performance.
b. In relation to the consolidation of Sky Cable and Home Cable in 2004, a competitor television
broadcasting company (complainant) filed a case before the NTC for unlawful merger and
unlawful cross-ownership and common control and operations of telecommunications
companies and cable companies with a prayer for cease and desist order. As of June 30, 2014,
the case is still pending before the NTC. It is the opinion of Sky Visions legal counsels that
the case filed by the complainant is without legal basis and would not have a material impact
to the consolidated financial statements.

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ABS-CBN Corporation Quarterly Report For Period Ended June 30, 2014

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ABS-CBN CORPORATION

PART I - FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

MANAGEMENTS DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS

(Amounts in million Pesos)

*Excluding election related revenues

Consolidated Costs and Expenses

(Amounts in million Pesos)

Mainstream - Star Cinema

Gross Profit Rate (%)

(Amounts in million Pesos)

(Amounts in million Pesos)

EXHIBIT 1 Aging of Accounts Receivable

Neither Past Due

Past Due Accounts

As of December 31, 2013

Neither Past Due

Past Due Accounts

ABSCBN Corporation and Subsidiaries

ABS-CBN CORPORATION AND SUBSIDIARIES

LIABILITIES AND EQUITY

See accompanying Notes to Interim Condensed Consolidated Financial Statements.

ABS-CBN CORPORATION AND SUBSIDIARIES

For the Quarter

For the Period

INTEREST INCOME (Note 6)

FOREIGN EXCHANGE GAINS

OTHER INCOME - net (Notes 26 and 29)

INCOME BEFORE INCOME TAX

PROVISION FOR (BENEFIT FROM)

EQUITY IN NET EARNINGS (LOSSES) OF

Basic/Diluted Earnings per Share Attributable

See accompanying Notes to Interim Condensed Consolidated Financial Statements.

ABS-CBN CORPORATION AND SUBSIDIARIES

For the Quarter

TOTAL COMPREHENSIVE INCOME

For the Period

See accompanying Notes to Interim Condensed Consolidated Financial Statements.

ABS-CBN CORPORATION AND SUBSIDIARIES

Capital Stock (Note 21)

Attributable to Equity Holders of the Parent Company

At December 31, 2012

Other comprehensive income

Total comprehensive income

Cash dividend declared

Reversal of appropriation of retained

Appropriation of retained earnings

Issuance of common stock

Subscription of common stock

Increase in noncontrolling interest

At June 30, 2013 (Unaudited)

At December 31, 2013 (Audited)

ABS-CBN CORPORATION AND SUBSIDIARIES

Six Months Ended June 30

Six Months Ended June 30

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS

NET INCREASE IN CASH AND CASH EQUIVALENTS