ABS-CBN Posts P1.94 Billion Net Loss in First Quarter of 2021
ABS-CBN Corp.’s net losses ballooned to P1.944 billion during the first quarter of 2021, a 158.7 percent dip from the P751 million loss it recorded last year.
In its financial report submitted to the Philippine Stock Exchange, the Lopez-owned company said revenues continued to tank after the House of Representatives denied an extension of its franchise.
Consolidated revenues for the period stood at P3.92 billion, a 54.6-percent decline from P8.63 billion the year prior, as advertising revenues plunged 78.3 percent to P929 million from P4.28 billion. Consumer sales, meanwhile, plummeted to P3 billion from P4.38 billion.
One of the country’s top broadcasters said it was able to lower cost and expenses by 36.9 percent to P5.77 billion from P9.15 billion, but it was not enough to offset the decline in revenues.
For the year 2020, ABS-CBN said net loss stood at P13.53 billion, a 412 percent drop from the P2.65 billion loss it posted the previous year.
Revenues from advertising and consumer sales were at P21.4 billion in 2020, a 50 percent decline compared to P42.84 billion the year before.
ABS-CBN currently buys block time slots and airs its programs on TV5 of businessman Manny Pangilinan and Zoe Broadcasting. It also streams its content through various online channels. Revenues of its cable business Sky Cable was at P2.5 billion during the first three months of the year.
The company was also forced to close down some of its consumer sales subsidiaries, including Kidzania Manila and Studio XP, whose operations were severely affected by the pandemic.
In May last year, the National Telecommunications Commission ordered ABS-CBN to stop broadcasting operations after its franchise expired. Congress voted not to renew its legislative franchise two months later.
Don't forget to subscribe to the Esquire Philippines YouTube channel.
Esquire Philippines is now on Quento.