ABS-CBN posts P3.9-B loss in H1

ABS-CBN Corp. has incurred a net loss of P3.93 billion in the first half of 2020, reversing its P1.46-billion income a year earlier, after problems with securing a new congressional franchise affected its profitability.

In a filing on Thursday, the Lopez-led media conglomerate reported that its consolidated revenues dropped by 36 percent to P13.3 billion in January to June from P20.8 billion year-on-year after the National Telecommunications Commission’s May 5 order to stop its broadcasting operations after its old franchise expired prompted “a sharp decline” in advertising revenues in the second quarter.

Consumer sales reached P8.11 billion in the first semester, 14.2 percent lower than the P9.51 billion in the same period last year, which ABS-CBN attributed to its franchise-related troubles and “the Covid-19 (coronavirus disease 2019) pandemic that the country is facing.”

Earnings before interest, taxes, depreciation and amortization stood at P816 million, a 118.3-percent drop from P4.46 billion in 2019.

The filing comes after 70 lawmakers voted on July 10 to deny granting ABS-CBN a new broadcasting franchise. The decision was the result of 12 grueling hearings that extensively tackled the station’s alleged violations of its franchise, the Constitution, labor and tax laws, and biased reporting and political meddling.

The franchise denial prompted its supporters to mount protests and social media users to express outrage, calling the denial a blow to press freedom.

Days after the vote, the so-called Kapamilya network announced in a statement that it was “forced to cease the operations of some of its businesses and implement a retrenchment program covering ABS-CBN and subsidies effective end of business day on August 31.”

Since then, ABS-CBN has been forced to bank on its presence in the digital space and other business that do not require a franchise.

ABS-CBN shares added 3 centavos or 0.41 percent to finish at P7.28 each on Thursday.

WITH REPORTS FROM DIVINA NOVA JOY DELA CRUZ AND ARIC JOHN SY CUA

Source: TheManila Times