ABS 17Q Aug2006

ABS-CBN Broadcasting Corporation
Sgt. Esguerra Avenue, Quezon City, Philippines
01 August 2006
To: Jurisita M. Quintos Tel No. :(632) 688-7600

Senior Vice President Fax No.:(632) 636-0809
Philippine Stock Exchange
From: Geronimo C. Estacio Tel No. : (632) 924-4101 loc.4330

Finance Officer in Charge Fax No.: (632) 431-9368
Subject: Amended 1st Quarter 2006 Report (SEC Form 17-Q)
Gentlemen:
We are submitting herewith ABS-CBN Broadcasting Corporation’s Amended 1st Quarter 2006
Report (SEC Form 17-Q) in accordance with the received checklist of required disclosures, for
which we have the following explanations:
For the Consolidated Statements of Changes in Stockholders’ Equity, which SRC Rule 68.1
requires to show changes cumulatively for the current financial year-to-date with a
comparative statement for the comparable year-to-date period of the immediately
preceding financial year, we have inadvertently overlooked the correct equity schedule.
For the Company’s and its majority-owned subsidiaries’ top five (5) key performance
indicators, ABS-CBN has discussed these in its Management Discussion and Analysis
(MD&A) of the Financial Condition and Results of Operations as shown in its division of
different sections namely Revenues, Expenses, Operating Income, Net Income and
EBITDA.
We trust that we have sufficiently addressed your concerns.
Very truly yours,
LYRA C. FAJARIT
Investor Relations Manager
01 August 2006
April 27, 2006
COVER SHEET
1 8 0 3
S.E.C. Registration Numer
A B S - C B N B R OADC AS T I NG
C O R P O R A T I ON
(Company's Full Name)
A B S - C B N B R OADC AS T I NG C E NT E R
S G T . E S G U E R R A AVE . QUE Z ON C I T Y
(Business Address: No. Street City / Town / Province)
Lyra C. Fajarit 415-2272

Contact Person Company Telephone Number
1 7 - QA
Month Day FORM TYPE Month Day
Fiscal Year Annual Meeting
Secondary License Type, If Applicable
Dept. Requiring this Doc. Amended Articles Number/Section
Total Amount of Borrowings
Total No. of Stockholders Domestic Foreign
To be accomplished by SEC Personnel concerned
File Number LCU
Document I.D.
Cashier
STAMPS
ABS-CBN BROADCASTING CORPORATION
SEC FORM 17-Q
QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES

REGULATION CODE AND SRC RULE 17(b)(2) THEREUNDER
1. For the quarterly period ended March 31, 2006
2. SEC Identification No. 1803
3. BIR Tax Identification No. VAT 000-406-761-000
4. Exact name of registrant as specified in its charter : ABS-CBN Broadcasting Corporation
5. Philippines _
Province, Country or other jurisdiction of incorporation or organization
6. Industry Classification Code : _________ (SEC Use Only)
7. ABS-CBN Broadcasting Center Complex, Sgt. Esguerra

Avenue cor. Mo. Ignacia St.,Quezon City, Metro Manila 1100 _
Address of principal office Postal Code
8. (632) 924-41-01 up to 22 / 415-22-72

Registrant’s telephone no. and area code
9. Not applicable _
Former name, address, and fiscal year, if changed since last report
10. Securities registered pursuant to Sections 4 & 8 of the RSA:

No. of Shares of Common Stock
Title of Each Class Outstanding &/or Amount of Debt Outstanding
Common Stock, P 1 par value 779,583,312 shares
11. Are any or all of these securities listed on the Philippine Stock Exchange?
Yes [x] No [ ]
12. Indicate by check mark whether the registrant:
(a) has filed all reports required to be filed by Section 17 of the Securities Regulation
Code and Sections 26 and 141 of the Corporation Code of the Philippines during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports):
Yes [x] No [ ]
(b) has been subject to such filing requirements for the past 90 days.
Yes [x] No [ ]
2
TABLE OF CONTENTS
PART I -- FINANCIAL INFORMATION
Item 1 Management’s Discussion and Analysis of Financial Condition and

Results of Operations
Item 2 Financial Statements
Consolidated Balance Sheets

Consolidated Statements of Income and
Unappropriated Retained Earnings
Consolidated Statements of Changes in Stockholders’ Equity
Consolidated Statements of Cash Flows
Notes to Financial Statements
PART II -- OTHER FINANCIAL INFORMATION
Exhibit 1 Aging of Accounts Receivable
Exhibit 2 Business Segment & Geographical Segment Results
Exhibit 3 Roll-forward of PPE
SIGNATURES
3
Management Discussion and Analysis of Financial Condition and Results of
Operations for the Quarter Ended March 31, 2006
ABS-CBN Broadcasting Corp.’s net income reached P121 million in 1Q06, a reversal
from last year’s P132 million loss. The turnaround in profitability is attributable to a
lower cost base brought about by last year’s headcount optimization as well as more
judicious production cost spending. Moreover, airtime revenues improved by 4% as the
Company continued to strengthen its primetime programs. Revenues were also boosted
by license fees from the migration of North American DTH (direct to home) subscribers
to DirecTV’s platform.
Revenues
ABS-CBN Broadcasting Corp.’s (ABS-CBN) total revenues, consisting of gross airtime

revenues, sale of services, license fees, and sale of goods grew 14% year on year (YoY) to
P3,954 million in 1Q06 from P3,458 million in the same period last year.
Consolidated
Amounts in million pesos 1Q06 1Q05 Variance
Amount %
Airtime revenues 2,263 2,184 79 4
Sale of services 1,100 1,073 27 2
License fees 409 0 409 na
Sale of goods 182 200 (18) (9)
Gross revenues 3,954 3,458 497 14
Consolidated gross airtime revenues reached P2,263 million, up 4% compared to P2,184

million in 1Q05. Parent airtime revenues went up by 3% to P2,070 million. Although
ratings were almost flat YoY at 14% in 1Q06, parent airtime revenues grew 3% due to a
recovery in the primetime ratings in Metro Manila specifically in the 6pm to 10pm time
block. From an average rating of 36% in 1Q05, it rose to 37% in 1Q06 for the 6pm to
10pm block in Metro Manila. Meanwhile, airtime revenues of other platforms namely
the UHF and cable channels went up by 17%.
Consolidated
Amount %
Parent airtime revenues 2,070 2,019 51 3
Other platforms 193 165 28 17
Gross airtime revenues 2,263 2,184 79 4
License fees amounting to P409 million were booked in 1Q06. These represent revenues
from the ongoing migration of existing US DTH (direct to home) subscribers to
DirecTV’s platform as well as take up of new subscribers.
Sale of services, which refer to revenues derived from cable and satellite programming
services, film production and distribution, interactive media, content development and
programming services, post production, text messaging, etc., grew slightly by 2% to
P1,100 million. ABS-CBN Global, which contributed 70% of total, posted an 8% decline
4
in sale of services to P769 million with the migration of DTH subscribers to DirecTV.
ABS-CBN Global’s DTH subscription revenues in North America were reduced by half
following the deal with DirecTV which provided for a 50:50 revenue sharing upon
migration to DirecTV’s platform. Total subscriber base of ABS-CBN Global, on the other
hand, grew by 22% YoY, translating to 2.1 million viewers worldwide by end-March.

Amount %
ABS-CBN Global 769 835 (66) (8)
Other subsidiaries 331 239 92 39
Total sale of services 1,100 1,073 27 2
Other subsidiaries’ sale of services increased by 39% to P331 million in 1Q06 due to the
strong performance of ABS-CBN Films. ABS-CBN Films released two movies in 1Q06
such as Don’t Give up on Us and Close To You as against only one film namely Dreamboy
in 1Q05. Both of these films are also blockbuster hits hence posting higher movie
receipts.

Amount %
ABS-CBN Global 103 132 (29) (22)
Total sale of goods 182 200 (18) (9)
Meanwhile, sale of goods which refer to revenues arising from the sale of consumer
products such as magazines, audio, video products and phonecards, reached P182
million, down by 9% YoY. ABS-CBN Global, which accounted for 57% of total, posted a
22% drop in sale of goods after it stopped selling phonecards in the United States to
concentrate on its core business.
Expenses
Total recurring expenses were down slightly by 2% to P3,511 million. However,

including a non-recurring charge amounting to P208 million in marketing expenses
related to migration in DirecTV, total expenses increased by 4% to P3,719 million.
Consolidated
Amount %
Production cost 1,278 1,394 (116) (8)
General and administrative 1,161 976 185 19
Cost of sales and services 622 600 22 4
Agency commission, incentives, & co-prod share 503 444 59 13
Other expenses 156 165 9 5
Total expenses 3,719 3,578 141 4
Less: non-recurring expense 208 0 0 na
Total recurring expenses 3,511 3,578 (67) (2)
5
Operating expenses consisting of production cost, cost of sales and services, general and
administrative expenses, and agency commission increased by 4% to P3,563 million on
account of higher cash operating expenses. Cash operating expenses went up by 7%
while non-cash operating expenses dropped by 10%. If we strip-out the non-recurring
marketing expense, total opex would have been down by 2% to P3,355 million.
Total production cost declined by 8% to P1,278 million. Excluding non-cash charges

such as depreciation and amortization, cash production cost dropped by 10% to P941
million. Since 2005, the Company has initiated efforts to cut production cost given lower
revenues. For instance, the Company reduced local production and replaced certain
timeslots with foreign soap operas and cartoons. Some star-driven shows were also
replaced with less expensive concept driven programs starring new and lesser known
talents.
Consolidated
Amount %
Personnel expenses and talent fees 546 622 (76) (12)
Facilities related expenses 192 195 (3) (2)
Other program expenses 203 227 (24) (10)
Sub-total -cash production cost 941 1,044 (103) (10)
Non-cash production cost 336 349 (13) (4)
Total production cost 1,278 1,394 (116) (8)
Consolidated general and administrative expenses (GAEX) rose 19% YoY to P1,161
million. Excluding non-cash charges such as depreciation and amortization charges,
consolidated cash GAEX rose 28% to P1,045 million. However, without the non-
recurring charge of P208 million, recurring cash gaex is up by only 3% YoY to
P837million.
Consolidated
Amount %
Personnel expenses 420 408 12 3
Advertising and promotions 240 20 220 1104
Facilities related expenses 112 121 (9) (8)
Contracted services 78 86 (8) (9)
Taxes and licenses 35 38 (2) (6)
Entertainment, amusement and recreation 5 6 (1) (9)
Other expenses 154 137 18 13
Sub-total -cash GAEX 1,045 816 229 28
Non-cash GAEX 116 160 (44) (28)
Total GAEX 1,161 976 185 19
Less: non-recurring expense 208 0 0 na
Total recurring GAEX 953 976 (23) (2)
Parent cash GAEX went up by 68% to P565 million, inclusive of non-recurring charges of
P208 million, representing marketing expenses to encourage migration to DirecTV.
Stripping-out this non-recurring charge, parent cash GAEX would have been up by 6%
6
only to P357 million or in line with inflation growth. Meanwhile cash GAEX of the
subsidiaries was flat at P480 million.
Cost of sales and services, which is the cost related to sale of services and sale of goods,
went up by 4% to P622 million as against flat combined sale of services and sale of
goods.
Amount in million pesos 1Q06 1Q05 Variance

Amount %
ABS-CBN Global 382 402 (20) (5)
Total cost of sales and services 622 600 22 4
Non-cash operating expenses, composed primarily of depreciation and amortization,

went down by 10% to P490 million from P545 million the previous year. Depreciation
expense declined by 3% to P283 million due to controlled capex spending.
Amortization, on the other hand, dropped by 18% to P207 million in 1Q06 from P253
million as the Company already completed the amortization of deferred subsidies on the
decoder boxes of existing DTH subscribers in 2005. Moreover, film rights amortization
dropped by 9% to P205 million due to lower cost of expiring titles.
Operating Income
With revenues rising faster at 14% as against expense growth of 4%, operating income
increased by more than sevenfold to P391 million from P45 million in 1Q05. This
translates to an operating margin of 10% compared to 1% in the same period last year.
Net Income
Other expenses declined by 6% to P156 million due to lower net finance costs and equity
losses. Net finance costs went down by 6% to P245 million due to higher interest income
from Beyond Cable. Moreover, equity losses declined to P13 million from P16 million in
the same period last year due to lower losses of Beyond Cable.
With the improvement in operating income and flat other expenses, the Company
reported a net income of P121 million in 1Q06, a reversal from a net loss of P132 million
in the same period last year. Earnings before interest, taxes, depreciation, and
amortization (EBITDA) went up by 37% to P873 million, translating to an EBITDA
margin of 22% from 18% last year.
Balance Sheet Accounts
As of end-March 2006, ABS-CBN had total consolidated assets of P23,974 million, 3%

lower vs end-2005. Cash and cash equivalents declined by 29% to P1,241 million due to
loan payments in 1Q06. Consolidated trade and non-trade receivables dropped by 10%
to P4,223 million. In particular, net trade receivables declined by 10% to P3,390 million
7
due to collections from DirecTV. This translates to consolidated trade days sales
outstanding (DSO) of 70 days as against 81 days in 2005.
Other current assets increased by 33% to P1,099 million due primarily to production
expenses of yet to be aired episodes of the Company’s programs particularly soap
operas such as Panday, Sa Piling Mo, and Gulong ng Palad. Since 2005, the Company
begun the canning or advanced taping of some shows in order to cut location rentals
and maximize efficiencies from production planning.
At the end of the first quarter, total interest-bearing loans and borrowings declined by
11% to P5,600 million from P6,276 million in end-2005 following the payment of P676
million in loans in 1Q06. As a result, net debt to equity ratio declined slightly to 0.33x
from 0.34x in 2005. Meanwhile, total capital expenditure including program rights
acquisition amounted to P140 million in 1Q06, 4% higher vs last year.
8
ABS-CBN BROADCASTING CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 2006 and December 31, 2005
(In Thousands, Except Par Value and Number of Shares)
2006 2005
March December
Unaudited Audited
ASSETS
Current Assets
Cash and cash equivalents 1,240,972 1,751,730
Trade and other receivables 4,222,613 4,667,630
Derivative assets 192,447 193,305
Program rights - current 684,337 799,040
Other current assets 1,098,736 826,395
Total Current Assets 7,439,106 8,238,100
Noncurrent Assets
Investment in associates 44,233 44,233
Long-term receivables from related parties 2,313,863 2,341,683
Property and equipment at cost - net 10,108,055 10,287,599
Noncurrent program rights and other intangible assets 1,650,450 1,516,558
Deferred tax assets 239,203 294,147
Other noncurrent assets - net 2,179,647 2,073,246
Total Non Current Assets 16,535,451 16,557,466
23,974,557 24,795,566
LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Trade and other payables 4,231,073 4,686,721
Income tax payable 38,678 28,150
Derivative liabilities 225,047 103,912
Obligations for program rights - current 474,983 360,624
Interest-bearing loans and borrowings - current 1,140,912 1,766,144
Total Current Liabilities 6,110,693 6,945,551
Noncurrent Liabilities
Interest-bearing loans and borrowings - net of current portion 4,458,959 4,509,640
Obligations for program rights - net of current portion 63,237 61,778
Deferred tax liabilities - net - -
Asset retirement obligation 1,635 1,698
Total Noncurrent Liabilities 4,523,831 4,573,116
Stockholders' Equity
Capital Stock - P1 par value
Authorized - 1,500,000,000 shares
Issued and outstanding -
779,583,312 shares 779,583 779,583
Capital paid in excess of par value 706,047 706,047
Cumulative translation adjustments 120,647 153,194
Retained earnings 11,875,541 11,777,060
Philippine depositary receipts convertible to common shares (200,000) (200,000)
Total Stockholers' Equity attributable to Equity holders of Parent Company 13,281,818 13,215,884
Minority Interest 58,215 61,015
Total Stockholders' Equity 13,340,033 13,276,899
23,974,557 24,795,566
9
Consolidated Statement of Income and Expenses
For the period ended March 31
(Unaudited)
(In Thousands)
For the period ended

March 31
2006 2005
REVENUES
Airtime revenues 2,262,796 2,184,163
Sale of services 1,100,170 1,073,421
License fees 409,401 -
Sale of goods 182,089 199,966
3,954,457 3,457,550
EXPENSES (INCOME)
General and administrative 1,160,648 975,519
Production costs 1,277,554 1,393,528
Cost of sales and services 622,130 599,766
Agency commission, incentives and co-producers' share 502,871 443,633
Finance costs 310,657 307,597
Finance revenue (65,285) (46,726)
Equity in net losses of associates 13,095 16,435
Foreign exchange (gain) loss - net (45,479) (57,621)
Other income (56,848) (54,310)
3,719,342 3,577,820
INCOME BEFORE INCOME TAX 235,115 (120,270)
PROVISION FOR INCOME TAX 114,231 11,351
NET INCOME 120,884 (131,621)
Attributable to :
Equity holders of Parent Company 121,343 (132,811)
Minority Interest (460) 1,191
120,884 (131,621)
EBITDA 872,925 623,063
EARNINGS PER SHARE (EPS)
Basic EPS 0.156 (0.170)
10
Consolidated Statements of Changes in Stockholders' Equity
March 31, 2006 and March 31, 2005
(In Thousands, Except Per Share Amounts)
Attributed to equity holders of parent

Philippine
Depository
Capital Cumulative Unappropriated Appropriated Receipts
Capital in Excess of Translation Retained Retained Convertible to Minority Total
Stock Par Value Adjustments Earnings Earnings Common Shares Total Interest Equity
At January 1, 2006 779,583 706,047 153,194 3,477,060 8,300,000 (200,000) 13,215,884 61,015 13,276,899
Effect of adoption of PAS 19, 36 and 39 - - - (22,863) - - (22,863) - (22,863)
At January 1, 2006, as restated 779,583 706,047 153,194 3,454,197 8,300,000 (200,000) 13,193,021 61,015 13,254,036
Minority interest - - - - - - - (2,340) (2,340)
Cash flow hedges - - - - - - - - -
Amortization of initial CTA - - (32,547) - - - (32,547) - (32,547)
Translation adjustments during the year - - - - - - - - -
Total income and expense for the year recognized directly in equity - - (32,547) - - - (32,547) (2,340) (34,887)
Net income - - - 121,343 - - 121,343 (460) 120,884
Total income and expense for the year - - (32,547) 121,343 - - 88,796 (2,800) 85,997
At March 31, 2006 779,583 706,047 120,647 3,575,540 8,300,000 (200,000) 13,281,817 58,215 13,340,033
At December 31, 2004, as previously reported 779,583 706,047 138,334 3,629,483 8,300,000 (200,000) 13,353,447 42,248 13,395,695
Effect of adoption of PAS 19 and 36 - - - - - - - - -
At December 31, 2004, as restated 779,583 706,047 138,334 3,629,483 8,300,000 (200,000) 13,353,447 42,248 13,395,695
Effect of adoption of PAS 39 - - - - - - - - -
At January 1, 2005, as restated 779,583 706,047 138,334 3,629,483 8,300,000 (200,000) 13,353,447 42,248 13,395,695
Minority interest - - - - - - - (34,015) (34,015)
Cash flow hedges - - - - - - - - -
Amortization of initial CTA - - - - - - - - -
Translation adjustments during the year - - - - - - - - -
Total income and expense for the year recognized directly in equity - - - - - - - (34,015) (34,015)
Net income - - - (132,811) - - (132,811) 1,191 (131,621)
Total income and expense for the year - - - (132,811) - - (132,811) (32,824) (165,636)
At March 31, 2005 779,583 706,047 138,334 3,496,672 8,300,000 (200,000) 13,220,636 9,424 13,230,059
11
CONSOLIDATED CASH FLOW STATEMENTS
For the period ended March 31
(Unaudited)
(In Thousands)
For the period ended

March 31
2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES
Income from before income tax 235,115 (120,270)
Adjustments for :
Depreciation 282,694 292,133
Interest expense 114,130 165,176
Amortization of :
Program rights 205,479 225,395
Production and distribution 1,627 3,956
Deferred charges and debt issue cost 21,414 42,672
Provisions for :
Doubtful accounts 17,814 39,880
Interest income (65,285) (44,902)
Equity in net losses of investees 13,095 16,435
Mark to market (gain) loss 97,821 61,137
Unrealized foreign exhange gain (80,080) 20,570
Gain on sale of property and equipment - -
Operating income before working capital changes 843,825 702,184
Decrease (increase) in :
Receivables 427,138 (771,081)
Program rights and other intangible assets (35,925) (44,886)
Other current assets (272,341) (229,436)
Increase (decrease) in :
Trade and other payables (474,392) 231,455
Obligations for program rights (74,552) (66,927)
Other non-current liabilities - 13,252
Cash generated from operations 413,752 (165,440)
Income tax paid (60,758) (5,523)
Net cash provided by operating activities 352,994 (170,962)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (104,229) (90,046)
Increase in :
Other non-current assets (108,881) (220,825)
Long-term receivables from related parties 130,465 332,864
Investment in associates (21,480) 20,424
Interest received 8,185 2,544
Proceeds from sale of property and equipment - -
Net cash used in investing activities (95,941) 44,961
CASH FLOWS FROM FINANCING ACTIVITIES
Interest and other financial charges paid (151,825) (170,556)
Payments of :
Long-term debt (279,252) (41,803)
Bank loans (447,898) (416,943)
Capital lease 18,664 (11,654)
Cash and scrip dividends - -
Proceeds from :
Long-term debt - 749,155
Bank loans 92,500 33,000
Net cash used in financing activities (767,812) 141,199
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (510,758) 15,198
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,751,730 1,291,557
CASH AND CASH EQUIVALENTS AT END OF YEAR 1,240,972 1,306,755
12
NOTES TO FINANCIAL STATEMENTS

(Amounts in Thousands Unless Otherwise Specified)
1. Basis of Preparation
The interim financial statements have been prepared in compliance with the accounting
principles generally accepted in the Philippines as set forth in Philippine Financial Reporting
Standards (PFRSs). The Company first adopted the transition to PFRSs in the 2005 annual
financial statements.
The Company applied PFRS 1, First-time adoption of PFRS, in preparing these financial
statements, with January 1, 2004 as the date of transition. The transition to PFRSs resulted in
certain changes to the Company’s previous accounting policies (referred to in the following
tables and explanations as “previous GAAP”). The comparative figures for the 2005 interim
financial statements were restated to reflect the changes in policies.
2. Accounting Policies and Methods -
The accounting policies adopted are consistent with those of the previous financial year
except for the adoption of the following new/revised standards effective for financial years
beginning on or after January 1, 2005:
PAS 16, “Property, Plant and Equipment”;

PAS 19, “Employee Benefits”;
PAS 32, “Financial Instruments: Disclosure and Presentation”;
PAS 39, “Financial Instruments: Recognition and Measurement”; and
PFRS 3, “Business Combinations,” PAS 36 (revised) “Impairment of Assets” and
PAS 38 (revised) “Intangible Assets.”
An explanation of the effects of the adoption of PFRSs is set forth in the following tables and
notes.
Reconciliation of income and expenses for the first quarter of 2005 follows:
Effect of
transition to
Previous GAAP PFRS PFRS
REVENUES =3,457,503
P =48
P =3,457,550
P
EXPENSES (INCOME)
Production costs 1,393,528 – 1,393,528
General and administrative 939,091 36,429 975,519
Cost of sales and services 600,548 (782) 599,766
Agency commission, incentives and
co-producers’ share 443,633 – 443,633
Finance costs 240,299 67,298 307,597
Equity in net losses of associates 16,435 – 16,435
Foreign exchange loss - net 15,229 (72,850) (57,621)

Finance revenue (44,902) (1,824) (46,726)
Other income (54,310) – (54,310)
13
3,549,550 28,270 3,577,820
INCOME BEFORE INCOME TAX (92,048) (28,222) (120,270)
PROVISION FOR INCOME TAX 21,037 (9,687) 11,351
NET INCOME (P
=113,085) (18,536) (P
=131,621)
Effect of
transition to
Previous GAAP PFRS PFRS
Attributable to:
Equity Holders of the Parent
Company (P
=114,275) (18,536) (P
=132,811)
Minority Interest 1,191 1,191
Notes to the Reconciliation of Net Income for 1st quarter of 2005:
a. PAS 16, “Property, Plant and Equipment”
PAS 16 provides additional guidance and clarification on recognition and measurement

of items of property, plant and equipment. It also provides that each part of an item of
property, plant and equipment with a cost that is significant in relation to the total cost of
the item shall be depreciated separately. This resulted to componentization of the
Company’s building, which changed the estimated useful life of each significant item in
the building account. The adjustment was taken in the consolidated financial statements
prospectively and resulted to an increase in depreciation expense by = P15.974 million in
2005.
b. PAS 19, “Employee Benefits”
Under previous GAAP, pension benefits were actuarially determined using the entry age
normal method and past service cost and experience adjustments, amortized over the
expected average remaining working lives of the covered employees. Under PFRS,
pension benefits are determined using the projected unit credit method. Actuarial gains
and losses that exceed a 10% “corridor” are amortized over the expected average
remaining working lives of participating employees and vested past service cost,
recognized immediately. In addition, the Company recognized other long-term
employee benefits which were not recognized in prior years. The Company also availed
of the voluntary exemption under PFRS 1. The change increased personnel expenses by
=6.354 million in 2005.
P
c. PFRS 3, “Business Combinations,” PAS 36, “Impairment of Assets,”

and PAS 38, “Intangible Assets”
Under previous GAAP, intangible assets were considered to have a finite useful life with
a rebuttable presumption that life would not exceed ten years from the date when the
asset was available for use. Under PFRS, some of the intangible assets are regarded to
have an indefinite useful life when, based on an analysis of all the relevant factors, there
is no foreseeable limit to the period over which the asset is expected to generate net cash
inflows for the Company. Accordingly, cable channels of Creative Programs, Inc (CPI) is
considered to have an indefinite life and the useful life of the production and distribution
business in the Middle East operations is changed from 10 to 25 years. Due to the change
in the estimated useful life of the cable channels of CPI (from finite to indefinite), the
carrying value of the cable channels as of January 1, 2005 is no longer amortized. Instead,
it was tested for impairment. As of December 31, 2005, there was no impairment
identified and the related amortization as of March 31, 2005 of P7.187 million was
14
reversed. On the other hand, the change in estimated useful life of the production and
distribution business in the Middle East operations resulted to an adjustment in the
consolidated financial statements prospectively and resulted to a reversal of amortization
expense by P= 1.487 million in 2005.
d. PAS 32, “Financial Instruments: Disclosure and Presentation”
PAS 32 covers the disclosure and presentation of all financial instruments. The standard
requires more comprehensive disclosures about a company’s financial instruments,
whether recognized or unrecognized in the financial statements. New disclosure
requirements include terms and conditions of financial instruments used, types of risks
associated with both recognized and unrecognized financial instruments (market risk,
price risk, credit risk, liquidity risk, and cash flow risk), fair value information of both
recognized and unrecognized financial assets and financial liabilities, and financial risk
management policies and objectives. The standard also requires financial instruments to
be classified as liabilities or equity in accordance with their substance and not their legal
form. New disclosure requirements were included as a result of the adoption of the new
standard.
e. PAS 39, “Financial Instruments: Recognition and Measurement”
PAS 39 establishes the accounting and reporting standards for recognizing and
measuring a company’s financial assets and financial liabilities. The standard requires a
financial asset or financial liability to be recognized initially at fair value. Subsequent to
initial recognition, a company should continue to measure financial assets at their fair
values, except for loans and receivables and held-to-maturity investments, which are to
be measured at cost or amortized cost using the effective interest rate method. Financial
liabilities are subsequently measured at cost or amortized cost, except for liabilities
classified as “at fair value through profit and loss” and derivatives which are measured
at fair value. PAS 39 requires the use of discounted cash flow techniques in determining
impairment loss when objective evidence at impairment exists for financial assets that
accounted for at fair value through profit or loss.
PAS 39 also covers the accounting and reporting standards for derivative instruments.
The standard has expanded the definition of a derivative instrument to include
derivatives (derivative-like provisions) embedded in non-derivative contracts. Under the
standard, every derivative instrument is recorded in the balance sheet as either an asset
or a liability measured at its fair value. Derivatives that are not designated and do not
qualify as hedges are adjusted to fair value through income. If the derivative is
designated and qualifies as a hedge, depending on the nature of the hedge, changes in
the fair value of derivatives are either offset against the change in fair value of the
hedged assets, liabilities or firm commitments through earnings, or recognized in equity
until the hedged item is recognized in earnings. A company must formally document,
designate and assess the hedge effectiveness of derivative transactions that receive hedge
accounting treatment.
Adoption of this Standard resulted to:
a. Implementation of the effective interest method resulted to P21.4 million of

amortization in debt issue cost during the 1st quarter of 2006.
b. The Company recognized the fair value of its derivatives (freestanding and
embedded) as of January 1, 2005. The fair value of freestanding derivatives which
qualified for hedge accounting under previous GAAP was reported in CTA.
Embedded derivatives were bifurcated from program rights and license agreements.
15
Adoption of this standard has increased (decreased) the following accounts at March
31, 2005:
Increase /
(Decrease)
Revenues 48
Cost of Sales (782)
Mark to Market Loss 62,961
Mark to Market Gain 1,824
Foreign Exchange Gain/Loss –net 72,850
Interest Expense 1,052
Amortization of debt issue cost 3,284
Provision for Income tax (9,687)
c. The Company tested its trade and other receivable for impairment in accordance
with PAS 39 and resulted to an increase of P22.774 million in 2005 provision for bad
debts.
d. The Company discounted its long-term non-interest-bearing payables to comply

with PAS 39’s requirement to record all financial instruments at fair value upon
initial recognition. Subsequently, these were carried at amortized costs.
Other Adopted PFRSs

The Company has also adopted the following under PFRSs. Comparative presentation and
disclosures have been amended as required by the standards. Adoption of these standards
has no effect on equity at March 31, 2005.
PAS 1, “Presentation of Financial Statements”;

PAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”;
PAS 10, “Events after Balance Sheet Date”;
PAS 24, “Related Party Disclosures”;
PAS 27, “Consolidated and Separate Financial Statements”; and
PAS 28, “Investments in Associates.”
3. Seasonality or Cyclicality of Interim Operations
The company’s operations are not generally affected by any seasonality or cyclicality.
4. Nature and Amount of Changes of Estimates
The effect of changes in estimates or amounts reported in prior interim periods do not have a
material effect in the current interim period.
5. Repayments of Debt
Repayments of long-term debt are scheduled as follows:
2006 1,450,616
2007 1,758,667
2008 1,842,677
2009 683,303
Total 5,735,263
16
6. Dividends paid
No dividends were paid in the current interim period. No declaration of dividend payment has
been made by the Board of Directors.
7. Earnings Per Share Computation
Basic earnings per share are calculated by dividing the net income for the period attributable to
common shareholders by the weighted average number of common shares outstanding during
the period. Weighted average shares outstanding are 769,583,312.
8. Material Events
A. Any known trends, demands, commitments, events or uncertainties that will have a material
impact on the issuer's liquidity.
-- In June 2004, the Company successfully signed a syndicated loan for US$120 million to
refinance the Company’s existing debts and to fund further investments in cable television
operations. The new loan is secured by the Company’s real property and certain equipment
and other assets and will be guaranteed by certain of the Company’s subsidiaries.
B. Any material commitments for capital expenditures, the general purpose of such
commitments and the expected sources of funds for such expenditures.
-- For 2006, ABS-CBN Broadcasting Corp. expects to invest approximately P1.2 billion for
capital expenditure and acquisition of film and program rights, the same amount as in 2005.
This funding requirement will be financed through internally generated funds.
C. Any known trends, events or uncertainties that have had or that are reasonably expected to
have a material favorable or unfavorable impact on net sales/revenues/income from
continuing operations.
-- ABS-CBN Broadcasting Corp.’s results of operations depend largely on the ability to sell
airtime for advertising. The company’s business may be affected by the general condition of
the economy of the Philippines.
D. Any event that will trigger direct or contingent financial obligation that is material to the
company, including any default or acceleration of an obligation.
-- As of 31 December 2005, there are no events of default which may trigger a direct or
contingent financial obligation that is material to the Company.
The Senior Credit Agreement dated 18 June 2004 between the Company and several creditor
banks contains customary events of default which may trigger material financial obligations
on the part of the Company, such as, non-payment of financial obligations, breach of material
provisions and covenants, cancellation of the Company’s key licenses, insolvency, cessation
of business, expropriation, issuance of final judgment against the Company involving a
significant amount, material adverse change in the operations and structure of the Company.
The events that transpired last 04 February 2006 in connection with the celebration of the first
year anniversary of the program "Wowowee" resulted in the death of 71 people and injury to
about 200 others. The tragedy and the decision and subsequent action of the officers for the
Company to shoulder the burial expenses of the dead and medical expenses of the injured,
17
did not result in any “direct or contingent financial obligation that is material to the
Company.” As of February 2006, the 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
Company, said expenses do not constitute a material financial obligation of the Company, as
the Company remains in sound financial position to meet its obligations.
Although there have been investigations conducted by the government agencies on this
incident, there has been no case(s) filed in court against the Company, its officers, or
employees in connection herewith as of 30 March 2006. As a corporation which takes
seriously its social and moral responsibility to the Filipino people it serves, the Company
shall cooperate with government authorities, and will face any complaint or proceedings in
any legal forum.
E. Any significant elements of income or loss that did not arise from the issuer’s continuing
operations.
-- As of 31 March 2006, there are no significant elements of income that did not arise from the
Company’s continuing operations.
F. Any seasonal aspects that had a material effect on the financial condition or results of
operations.
-- There were no seasonal aspects that had a material effect on the financial condition or
results of operations for the interim period.
G. Any material events that were unusual because of their nature, size or incidents affecting
assets, liabilities, equity, net income, or cash flows
On June 1, 2005, the Parent Company and ABS-CBN International entered in to a 25-year
Deal Memorandum (Memorandum) with DirecTV in which the Parent Company granted
DirecTV the exclusive right via satellite, internet protocol technology and satellite master
antenna television system or similar system, to display, exhibit, perform and distribute
certain programs of the Parent Company that are listed in the Memorandum. ABS-CBN
International may engage in any marketing plan mutually agreed by both parties and
DirecTV may engage in ABS-CBN International. All costs under any mutually agreed
marketing plans shall be shared equally between DirecTV and ABS-CBN International.
As provided in the Memorandum, all rights, title and interest in and to the content, discrete
programs or channels not granted to DirecTV are expressly reserved by the Parent Company.
All programming decisions with respect to the programs shall be in the Parent Company’s
commercially reasonable discretion, including the substitution or withdrawal of any
scheduled programs, provided that the Parent Company agrees that the programs will
consist substantially the same content and genre provided for in the Memorandum.
The Memorandum also provides for the following license fees to be paid by DirecTV to the
Parent Company:
a. A license fee for each existing DTH subscriber of ABS-CBN International or new
subscribers who becomes an activated subscriber during the migration period (from June
2005 to February 2006); and
18
b. An additional license fee for each activated subscriber who becomes an activated
subscriber during the migration period that remains a subscriber for 14 consecutive
months.
The Memorandum also provides that subscription revenues, computed as the current and
stand alone retail price per month for a subscription to the TFC channel multiplied by the
average number of subscribers, shall be divided equally between DirecTV and ABS-CBN
International.
Starting July 2005, existing DTH subscribers of ABS-CBN International have been migrating
to DirecTV. As of March 31, 2006, license fee amounting to P =409 million have been
recognized in the consolidated financial statements.
On January 17, 2006, the Parent Company and DirecTV agreed to amend the Memorandum
entered in June 1, 2005 that include among others the extension of the migration period from
February 2006 to August 2006.
H. Any material events subsequent to the end of the interim period that have not been reflected
in the financial statements for the interim period.
-- There are no known material events subsequent to the end of the interim period that have
not been reflected in the financial statements for the interim period.
9. Business Segment Results
Segment information is prepared on the following bases:
Business segments: for management purposes, the Company is organized into three business
activities - broadcasting, cable and satellite, and other businesses. This segmentation is the basis
upon which the Company reports its primary segment information. The broadcasting segment is
principally the television and radio broadcasting activities which generates revenue from sale of
national and regional advertising time. Cable and satellite business primarily develops and
produces programs for cable television, including delivery of television programming outside the
Philippines through its DTH satellite service, cable television channels and blocked time on
television stations. Other businesses include movie production, consumer products and services.
Geographical segments: although the Company is organized into three business activities, they
operate in three major geographical areas. In the Philippines, its home country, the Company is
involved in broadcasting, cable operations and other businesses. In the United States and other
locations (which includes Middle East, Europe and Australia), the Company operates its cable
and satellite operations to bring television programming outside the Philippines.
Inter-segment transactions: segment revenue, segment expenses and segment results include
transfers among business segments and among geographical segments. Such transfers are
accounted for at competitive market prices charged to unaffiliated customers for similar services.
Those transfers are eliminated in consolidation.
Financial information on business segments and geographical segments is presented in Exhibit 2.
10. Changes in Composition of Issuer
There are no changes in the composition of the Issuer since the last balance sheet date.
19
11. Changes in Contingent Liabilities or Assets
There are no changes in contingent liabilities or contingent assets since the last balance sheet date.
12. Material Contingencies
There are no contingent liabilities, events or transactions that will materially affect the company’s
financial position and results of operations.
13. SFAS 16/IAS 16, “Property, Plant and Equipment.”
(See Exhibit 3)
14. SFAS 24/IAS 24, “Related Party Disclosures.”
Place of Ownership Interest

Company Incorporation Principal Activities 2005 2004
ABS-CBN Australia Pty. Ltd Victoria, Cable and satellite 100.0 (a) 100.0(a)
Australia programming
services
ABS-CBN Center for Communication Philippines Educational/training 100.0(b) 100.0(b)
Arts, Inc.
ABS-CBN Europe Ltd United Cable and satellite 100.0(a) 100.0(a)
Kingdom programming
services
ABS-CBN Film Productions, Inc. Philippines Movie production 100.0 100.0
(ABS-CBN Films)
ABS-CBN Global Ltd. (ABS-CBN Cayman Holding company 100.0 100.0
Global) (c) Islands
ABS-CBN Interactive, Inc. Philippines Services - interactive 100.0 100.0
media
ABS-CBN International California, Cable and satellite 98.0(a) 98.0(a)
USA programming
services
ABS-CBN Middle East FZ-LLC * Dubai, UAE Cable and satellite 100.0(a) 100.0(a)
programming
services
ABS-CBN Multimedia, Inc. Philippines Digital electronic 75.0(d) 75.0(d)
content
distribution
ABS-CBN Integrated and Strategic Philippines Real estate 100.0 100.0
Property Holdings, Inc. (e)
ABS-CBN Publishing, Inc. (f) Philippines Print publishing 100.0 100.0
Creative Programs, Inc. Philippines Content development 100.0 100.0
and programming
services
E-Money Plus, Inc. Philippines Services – money 100.0(a) 100.0(a)
remittance
Professional Services for Television & Philippines Services 100.0 100.0
Radio, Inc.
Sarimanok News Network, Inc. (SNN) Philippines Content development 100.0 100.0
and programming
services
20
Place of Ownership Interest
Company Incorporation Principal Activities 2005 2004
Sky Films, Inc. (Sky Films) Philippines Services – film 100.0 100.0
distribution
Star Recording, Inc. Philippines Audio and video 100.0 100.0
production and
distribution
Studio 23, Inc. (Studio 23) Philippines Content development 100.0 100.0
and programming
services
TV Food Chefs Inc. Philippines Services - restaurant 100.0 100.0
and food
Roadrunner Network, Inc. Philippines Services - post 98.9 98.9
(Roadrunner) production
Star Songs, Inc. Philippines Music Publishing 100.0 100.0
(a) indirectly-owned through ABS-CBN Global

(b) non-stock ownership interest
(c) with a branch in the Philippines
(d) indirectly-owned through ABS-CBN Interactive, Inc.
(e) not yet started commercial operations
(f) owns 50% interest in Sky Guide, Inc. and 70% interest in Culinary Publications, Inc.
* ABS-CBN Middle East FZ-LLC owns ABS-CBN Middle East LLC
ABS-CBN Broadcasting Corporation is the ultimate Philippine parent entity and the ultimate
parent company of the Company is Lopez, Inc.
The following table provides the total amount of transactions, which have been entered into
with related parties:
Transactions of the Company with its associates and related parties follow:
2006 2005
Associates
Interest on noncurrent receivable from Sky Vision 57,165 =53,582
P
License fees charged by CPI to Central, (a) PCC
and Home Cable 24,735 26,458
Blocktime fees paid by Studio 23 to Amcara (b) 13,887 15,554
Management and other service fees 206 206
Affiliates
Expenses paid by Parent Company & subsidiaries to
Manila Electric Company (Meralco), Bayan
Telecommunications Holding, Inc. (Bayantel)
& other related parties =110,670
P =94,755
P
Termination cost charges of Bayantel, a subsidiary of
Lopez, to ABS-CBN Global 62,748 143,315
Airtime revenue from Manila North Tollways Corp.
(MNTC), Bayantel and Meralco, an associate
of Lopez 12,872 135
Expenses and charges paid for by the
Parent Company which are reimbursed
by the concerned related parties 9.439 9,239
Rental charges of the Parent Company for the use
of office space - 287
21
The related receivables and payables from related parties are as follows:
2006 2005
Due from associates =166,637
P =145,538
P
Due from affiliates 61,333 107,168
Total =227,970
P =252,706
P
Due to associates P56,734
= P20,112
=
Due to affiliates 240,164 119,546
Total =296,898
P =139,658
P
Lopez, Inc. (Ultimate Parent)

The Company has no transaction with Lopez, Inc. for the years 2006 and 2005.
a. License Fees Charged by CPI to Central
CPI entered into a cable lease agreement (Agreement) with Central for the airing of the
cable channels (see Note 10) to the franchise areas of Central and its cable affiliates. The
Agreement with Central is for a period of five years effective January 1, 2001, renewable
upon mutual agreement. Under the terms of the Agreement, CPI receives license fees
from Central and its cable affiliates computed based on agreed rates and on the number
of subscribers of Central and its cable affiliates. As the owner of the said cable channels,
CPI develops and produces its own shows and acquires program rights from various
foreign and local suppliers.
b. Blocktime Fees Paid by Studio 23 to Amcara
Studio 23 owns the program rights being aired in UHF Channel 23 of Amcara. On July 1,
2000, it entered into a blocktime agreement with Amcara for its provincial operations.
Other transactions with associates 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 unsecured, interest free and settlement occurs in
cash, except for the noncurrent receivables from SkyVision discussed in Note 8. For the
quarters ended March 31, 2006 and 2005, the Company has not made any provision for
doubtful accounts relating to amounts owed by related parties. This assessment is
undertaken each financial year through examining the financial position of the related party
and the market in which the related party operates.
As discussed in Note 15, the Parent Company’s obligation under the Senior Credit
Agreement (SCA) is jointly and severally guaranteed by its principal subsidiaries.
Compensation of key management personnel of the Company
2006 2005
Compensation =63,012
P =89,580
P
Pension benefit 7,948 8,032
Vacation leaves and sick leaves 1,522 980
Termination benefits - -
=72,482
P =98,592
P
22
15. SFAS 28/IAS 28, “Accounting for Investments in Associates.”
The group’s investment in its associate is accounted for under the equity method of accounting.
This is an entity in which the group has significant influence and which is not a subsidiary. The
investment in its associate is carried in the balance sheets at cost plus post-acquisition changes in
the group’s share of net assets of the associate, less any impairment in value. The statements of
income reflects the group’s share of the results of operations of the associate. Unrealized gains
arising from transactions with its associate are eliminated to the extent of the group’s interest in
the associate, against the investment in the associate. Unrealized losses are eliminated similarly
but only to the extent that there is no evidence of impairment of the asset transferred. The
group’s investment in its associate includes goodwill (net of accumulated amortization) on
acquisition, which is treated in accordance with the accounting policy for goodwill stated below.
The detailed carrying values of investments which are carried under the equity method follow:
March December
2006 2005
Sky Vision P
=- =
P-
Amcara 44,233 44,233
P
=44,233 =44,233
P
16. Agency Commission, Incentives and Co-producers’ Share
2006 2005
As restated
Agency commission P336,061
= =322,157
P
Incentives and co-producers’ share 166,810 121,475
=502,871
P =443,633
P
17. Production Costs
2006 2005
As restated
Personnel expenses and talent fees P545,818
= =621,758
P
Facilities related expenses 192,112 195,201
Amortization of program rights 179,660 201,569
Other program expenses 203,470 227,210
=1,277,554
P =1,393,528
P
18. Cost of Sales and Services
2006 2005
As restated
Facilities related expenses P133,182
= =153,628
P
Termination costs 136,463 143,315
Inventory cost 75,211 103,261
Personnel expenses 45,538 36,754
Amortization of program rights 25,819 23,826
Other expenses 193,624 127,008
=622,130
P =599,766
P
23
19. General and Administrative Expenses
2006 2005
As restated
Personnel expenses P420,097
= =408,390
P
Advertising and promotions 239,953 19,934
Facilities related expenses 111,626 121,108
Contracted services 78,079 85,723
Provision for doubtful accounts 17,814 39,880
Taxes and licenses 35,428 37,828
Entertainment, amusement and recreation 5,394 5,948
Other expenses 138,350 124,337
=1,160,648
P =975,519
P
20. Other Income and Expenses
Other Income
2006 2005
As restated
Space rental =22,422
P =21,475
P
Management fees 0 0
Royalty income 3,452 3,363
Others 30,974 29,472
=56,848
P =54,310
P
Finance Revenue
2006 2005
As restated
Interest income =65,285
P =44,902
P
Mark-to-market gain 0 1,824
=65,285
P =46,726
P
Finance Cost
2006 2005
As restated
Interest expense =146,677

P =165,176
P
Hedge cost 42,272 58,454
Amortization of debt issue costs 21,414 19,367
Bank service charges 2,472 1,638
Mark-to-market loss 97,821 62,961
=310,657
P =307,597
P
24
21. Financial Assets and Liabilities
The following table sets forth the carrying values and estimated fair values of consolidated
financial assets and liabilities recognized as of March 31, 2006. There are no material
unrecognized financial assets and liabilities as of March 31, 2006.
Carrying Amount Fair Value

Current financial assets:
Cash and cash equivalents P1,240,972
= =1,240,972
P
Trade and other receivables - net 4,222,613 4,222,613
Derivative assets 192,447 192,447
Total current financial assets 5,656,032 5,656,032
Noncurrent financial assets
Available-for-sale investments 30,931 30,931
Long-term receivables from related parties 2,313,863 2,313,863
Total noncurrent financial assets 2,344,794 2,344,794
Total financial assets =8,000,826
P =8,000,826
P
Carrying Amount Fair Value

Current financial liabilities:
Trade and other payables =4,231,073
P =4,231,073
P
Interest-bearing loans and borrowings - -
Derivative liabilities 225,047 225,047
Total current financial liabilities 4,456,120 4,456,120
Noncurrent financial liabilities
Interest-bearing loans and borrowings 5,313,830 5,755,635
Total financial liabilities =9,769,950
P =10,211,755
P
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 amount as of balance sheet date.
Available-for-sale investments: The fair values were determined by reference to market bid
quotes as of balance sheet date.
Interest-bearing loans and borrowings: Fair value was computed based on the following:
Debt Type Fair Value Assumptions

Term loan 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.
Other variable rate loans The face value approximates fair value because of recent
and frequent repricing based on market conditions.
Forward foreign exchange contracts and bifurcated foreign currency forwards: The fair values were
determined using forward exchange market rates at the balance sheet date.
25
Derivative Instruments
Cross Currency Swaps. In 2004, the Parent Company entered into long-term cross currency
swaps that hedge 100% of the Tranche A Principal against foreign exchange risk. The long-
term principal-only currency swaps have an aggregate notional amount of US$52.1 million as
of March 31, 2006 and a weighted average swap rate of P =56.01 to US$1. Under these
agreements, the Parent Company effectively swaps the principal amount of certain US dollar-
denominated loans under the SCA into Philippine peso-denominated loans with payments
up to June 2009.
The Company is also obligated to pay swap costs based on a fixed rate of 8.0% on a notional
amount of =
P1.3 billion, 5.125% on a notional amount =
P203 million, 3-month PHIREF minus
2.9% on a notional amount = P1.7 billion and 3-month PHIREF minus 3.1% on a notional
amount on P
=264 million.
Interest Rate Swaps. To manage the interest rate exposure from the floating rate loans, the
Company also entered into USD interest rate swaps and PHP interest rate swaps which
effectively swap certain floating rate loans into fixed-rate loans. These USD interest rate
swaps and PHP interest rate swaps have an aggregate outstanding notional amount of
US$29.1 million and =P283.8 million as of March 31, 2006, respectively, with payments up to
September 2006 and March 2008.
The terms of the USD and PHP interest rate swap agreements are as follows:
Outstanding Notional Amount Maturity Receive Pay

US$29,138 2008 3-Month Libor + 3.5% 7.18%
PHP283,801 2008 PHIREF + 3.5% 14.40%
Hedge Accounting Implications of Swaps. The Parent Company’s principal-only currency swaps
and USD interest rate swap are designated as cash flow hedges on October 1, 2005, to
manage the Parent Company’s exposure to variability in cash flows attributable to foreign
exchange and interest rate risks of the underlying debt obligations. Since the critical terms of
the swaps and the outstanding debt obligations coincide, the hedges are expected to exactly
offset changes in expected cash flows due to fluctuations in foreign exchange and the prime
rate over the term of the debt obligations.
For the quarter ending March 31, 2006, the effective net mark-to-market losses for these cash
flow hedges amounted to P
=119.6 million of which P =24.5 million have been deferred in equity.
The Parent Company did not designate its PHP interest rate swap as an accounting hedge
because the effectiveness tests show ineffective results. During the year, the mark-to-market
gains recorded immediately in the consolidated statements of income amounted to = P15
million.
For the quarter ended March 31, 2006, the amortization of the initial CTA amounted to P
=7.7
million and is recorded as a reduction in interest expense.
Embedded Derivatives. As of December 31, 2005, the Company has outstanding embedded
foreign currency derivatives which were bifurcated from various non-financial contracts.
The impact of these embedded derivatives is not significant.
26
22. Causes for Material Changes in the Financial Statements
Balance Sheet (March 31, 2006 vs December 31, 2005)
• Cash and cash equivalents declined by 29% to P1,241 million due to loan payments made in
1Q06.
• Trade and other receivables declined by 10% to P4,223 million due to collections from
DirecTV.
• Combined program rights-current and non-current program rights and other intangible
assets is flat at P2,335 million.
• Other current assets increased by 33% to P1,099 million from end-2005 levels due to
production expenses of yet to be aired episodes of the Company’s programs.
• Deferred tax assets went up 19% to P239 million from P294 million due to decrease in
temporary tax differences.
• Trade and other payables declined by 10% to P4,231 million due to payment of suppliers.
• Total interest-bearing loans and borrowings decreased by 11% to P5,600 million from P6,276
million in end-2005 due to the scheduled amortizations in March.
• The 32% increase in obligations for program rights-current to P475 million is due to extended
credit terms given by program suppliers.
• The change in income tax payable is the result of the ordinary course of business of the
Company.
23. Other Notes to 1st Quarter 2006 Operations and Financials
23.1 The key performance indicators that we monitor are the following:
YTD March 2006 YTD March 2005

Gross Revenues 3,954 million 3,458 million
Gross Airtime Revenues 2,263 million 2,184 million
Sale of Services 1,100 million 1,073 million
Sale of Goods 182 million 200 million
Operating Income 391 million 45 million
Net Income 121 million (132) million
EBITDA 873 million 635 million
EPS 0.16 (0.16)
As of March 31, 2006 As of December 31, 2005

Current Ratio 1.22x 1.19x
Net debt-to-Equity 0.33x 0.34x
Consolidated Trade DSO 70 days 81 days
Parent Trade DSO 76 days 93 days
27
24. Note to Statements of Cash Flow
2006 2005
Noncash investing and financing activities:
Acquisition of property and equipment
under capital lease P21,552
= P89,496
=
Acquisition of program rights on account 190,370 130,841
Acquisition of property and equipment
on account - -
25. Reclassifications
The following accounts in March 31, 2005 consolidated financial statements have been
reclassified to conform to the 2005 annual presentation:
Nature Amount
Statement of Income:
Gross-up of Agency commission, incentives and co-producers’
share to Sale of services 56,355
Amortization, previously shown as a separate line item to:
Production costs 201,569
Cost of sales and services 47,914
General and administrative expenses 12,630
Amortization of Debt issue cost under “Finance Costs” 16,083
Depreciation previously shown as a separate line item, shown to:
Production costs 147,789
Cost of sales and services 11,973
General and administrative expenses 116,396
Minority Interest previously included under Miscellaneous-Net
to separate line item 1,191
Bank service charges previously included under Miscellaneous-
Net to Finance costs 1,638
Amortization of deferred charges previously classified under
Cost of Sales to General and administrative expenses 23,305
Amortization of deferred charges previously classified under
General and administrative expenses to Finance Cost 16,083
Foreign exchange loss previously classified under Miscellaneous-
Net to separate line item 15,229
Interest Income previously included in Interest Expense to
Finance Revenue 44,902
28
EXHIBIT 1
ABS - CBN BROADCASTING CORPORATION
AGING OF ACCOUNTS RECEIVABLE
AS OF MARCH 31, 2006
PAST DUE & ITEMS

TYPE OF ACCOUNTS RECEIVABLE TOTAL NOT YET DUE CURRENT 30 DAYS 60 DAYS 90 DAYS 120 - 360 DAYS OVER 360 DAYS IN LITIGATION
I. TRADE RECEIVABLES
TRADE RECEIVABLES 3,951,824 1,240,457 386,074 143,797 110,474 1,133,586 149,613 786,096 1,727
ALLOWANCE FOR DOUBTFUL ACCOUNTS 561,928
NET AR - TRADE 3,389,896
II. NON - TRADE RECEIVABLES
ADVANCES TO SUPPLIERS & CONTRACTORS 129,539

ADVANCES TO TALENTS 42,285
ADVANCES AGAINST CLAIMS - SSS 7,709
AR NON-TRADE OTHERS 437,653
AR AFFILIATES 227,970
Allowance for doubtful accounts (12,537)
NET AR - NON TRADE 832,717
NET RECEIVABLES 4,222,613
3,784,337
ACCOUNTS RECEIVABLE DESCRIPTION
1 TRADE RECEIVABLES - accumulated through the normal course of business i.e. sale of airing spots
2 NON TRADE RECEIVABLES - accumulated through transactions other than sale of airing spots
NORMAL OPERATING CYCLE -calendar year
29
EXHIBIT 2
ABS-CBN Broadcasting Corporation
Business Segment Data
In Thousands
FOR THE PERIOD ENDED MARCH 31
BROADCASTING CABLE AND SATELLITE OTHER BUSINESSES ELIMINATIONS CONSOLIDATED
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
Revenues
External Sales 2,571,657 2,124,988 1,044,808 1,097,099 337,992 235,464 3,954,457 3,457,550
Inter-segment sales 24,355 15,319 22,424 19,278 26,333 30,791 (73,112) (65,388) - -
Total Revenues 2,596,012 2,140,307 1,067,232 1,116,377 364,325 266,254 (73,112) (65,388) 3,954,457 3,457,550
Results
Segment Result 276,328 (121,702) (87,565) 86,969 53,090 1,752 149,403 78,085 391,255 45,105
Equity in net earnings (losses) (37,608) 14,303 - - - - 24,513 (30,738) (13,095) (16,435)
Other Income 115,788 116,827 84,247 3,256 6,216 3,250 (149,403) (69,023) 56,848 54,310
Finance Revenue 63,059 46,380 1,062 3 1,163 343 - - 65,285 46,726
Finance Cost (308,452) (306,775) (2,135) (785) (69) (36) - - (310,657) (307,597)
Foreign exchange gain (loss) 49,309 71,331 487 (10,814) (4,317) (2,895) - - 45,479 57,621
Income Tax (82,818) 2,243 (9,279) (8,442) (22,134) (5,152) - - (114,231) (11,351)
Net Income (Loss) 75,605 (177,393) (13,183) 70,186 33,949 (2,738) 24,513 (21,676) 120,884 (131,621)
Assets and Liabilities

Segment Assets 19,644,178 20,434,445 5,353,944 4,917,868 1,211,577 888,414 (2,191,937) (2,215,793) 24,017,762 24,024,934
Investment in equity method associates 3,598,254 2,636,139 - - - 371 (3,554,021) (2,434,852) 44,233 201,658
Consolidated Total Assets 23,242,432 23,070,584 5,353,944 4,917,868 1,211,577 888,785 (5,745,958) (4,650,645) 24,061,995 24,226,591
Segment Liabilities 4,037,593 2,915,157 2,721,743 3,300,168 637,188 502,819 (2,339,765) (2,606,257) 5,056,758 4,111,887
Other Segment Information

Depreciation and amortization of program rights 415,874 450,810 52,089 45,445 20,210 21,273 - - 488,173 517,528
Noncash expenses other than
depreciation and amortization of program rights 11,127 19,367 7,653 43,844 660 523 - - 19,441 63,735
30
EXHIBIT 3
ABS-CBN Broadcasting Corporation and Subsidiaries
Schedule of Property, Plant & Equipment Roll-Forward
As of March 31, 2006
1,679,274,978.52
Land and Building Television, Other Construction Equipment As of December 31 December 31
Land and Radio, Movie Equipment In Progress in Transit 2006 2005
Improvements Improvements and Auxiliary
Equipment
Cost:
Beginning Balance 302,818 9,773,515 5,521,641 3,218,694 118,777 - 18,935,445 18,239,878
Additions - 888 23,801 44,332 62,983 - 132,003 889,249
Disposals - - - (50,568) - - (50,568) (193,683)
Reclassifications (3,835) (3,663) (80,267) 89,579 (1,814) - 0
Transfers to/ from subsidiaries - - - - - - -
At March 31 298,983 9,770,739 5,465,175 3,302,037 179,946 - 19,016,881 18,935,445
Accumulated depreciation:
Beginning Balance 4,874 1,659,041 4,466,109 2,517,821 - - 8,647,846 7,589,594
Depreciation Charge for the year 297 114,634 95,759 72,004 - - 282,694 1,234,729
Disposals - - - (21,714) - - (21,714) (176,477)
Reclassifications (3,676) 2,787 (43,685) 44,574 - - (0) -
Transfers from subsidiaries - - - - - - -
At March 31 1,496 1,776,462 4,518,182 2,612,686 - - 8,908,826 8,647,846
Net book value 297,487 7,994,278 946,993 689,351 179,946 - 10,108,055 10,287,599
31

ABS 17Q Aug2006

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ABS-CBN Broadcasting Corporation

Sgt. Esguerra Avenue, Quezon City, Philippines

To: Jurisita M. Quintos Tel No. :(632) 688-7600

From: Geronimo C. Estacio Tel No. : (632) 924-4101 loc.4330

Subject: Amended 1st Quarter 2006 Report (SEC Form 17-Q)

We trust that we have sufficiently addressed your concerns.

Very truly yours,

(Company's Full Name)

Lyra C. Fajarit 415-2272

Secondary License Type, If Applicable

Dept. Requiring this Doc. Amended Articles Number/Section

Total Amount of Borrowings

Total No. of Stockholders Domestic Foreign

To be accomplished by SEC Personnel concerned

File Number LCU

SEC FORM 17-Q

QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES

1. For the quarterly period ended March 31, 2006

2. SEC Identification No. 1803

3. BIR Tax Identification No. VAT 000-406-761-000

4. Exact name of registrant as specified in its charter : ABS-CBN Broadcasting Corporation

6. Industry Classification Code : _________ (SEC Use Only)

7. ABS-CBN Broadcasting Center Complex, Sgt. Esguerra

8. (632) 924-41-01 up to 22 / 415-22-72

10. Securities registered pursuant to Sections 4 & 8 of the RSA:

12. Indicate by check mark whether the registrant:

PART I -- FINANCIAL INFORMATION

Item 1 Management’s Discussion and Analysis of Financial Condition and

Item 2 Financial Statements

Consolidated Balance Sheets

PART II -- OTHER FINANCIAL INFORMATION

Exhibit 1 Aging of Accounts Receivable

Exhibit 2 Business Segment & Geographical Segment Results

Exhibit 3 Roll-forward of PPE

ABS-CBN Broadcasting Corp.’s (ABS-CBN) total revenues, consisting of gross airtime

Consolidated gross airtime revenues reached P2,263 million, up 4% compared to P2,184

Amounts in million pesos 1Q06 1Q05 Variance

Amounts in million pesos 1Q06 1Q05 Variance

Total recurring expenses were down slightly by 2% to P3,511 million. However,

Total production cost declined by 8% to P1,278 million. Excluding non-cash charges

Amount in million pesos 1Q06 1Q05 Variance

Non-cash operating expenses, composed primarily of depreciation and amortization,

Balance Sheet Accounts

As of end-March 2006, ABS-CBN had total consolidated assets of P23,974 million, 3%

LIABILITIES AND STOCKHOLDERS' EQUITY

For the period ended

EBITDA 872,925 623,063

EARNINGS PER SHARE (EPS)

Basic EPS 0.156 (0.170)

Attributed to equity holders of parent

For the period ended

NOTES TO FINANCIAL STATEMENTS

2. Accounting Policies and Methods -

 PAS 16, “Property, Plant and Equipment”;

Foreign exchange loss - net 15,229 (72,850) (57,621)

Notes to the Reconciliation of Net Income for 1st quarter of 2005:

a. PAS 16, “Property, Plant and Equipment”

PAS 16 provides additional guidance and clarification on recognition and measurement

b. PAS 19, “Employee Benefits”

c. PFRS 3, “Business Combinations,” PAS 36, “Impairment of Assets,”

d. PAS 32, “Financial Instruments: Disclosure and Presentation”

e. PAS 39, “Financial Instruments: Recognition and Measurement”

PAS 16, “Property, Plant and Equipment”;

PAS 1, “Presentation of Financial Statements”;