ABS-CBN, GMA Network post contrasting financials

MANILA, Philippines — The financial performance of broadcast rivals ABS-CBN Corp. and GMA Network Inc. headed into opposite directions in the nine months ending September.

In separate stock exchange filings, ABS-CBN reported a P7.3 billion net loss during the nine-month period, a reversal of the P2.27 billion net income last year, while GMA ended with a consolidated bottomline of P3.91 billion, an improvement from last year’s P2.19 billion.

ABS-CBN generated consolidated revenues of P17 billion in the three quarters from advertising and consumer sales, 46.8 percent lower year-on-year.

The company said advertising revenues suffered a sharp decline in the second quarter following the issuance on May 5 by the National Telecommunications Commission (NTC) of a cease – and – desist order which prohibited it from continuing broadcast operations.

On June 30, ABS-CBN was also issued a cease – and – desist order for its digital TV transmission in Metro Manila using Channel 43 and on July 10, the House Committee on Legislative Franchises voted to adopt a resolution denying the franchise application of the company.

“These events, in addition to the COVID-19 pandemic that the country is facing, drove down both the advertising and consumer revenues of the company,” ABS-CBN said.

Among its business segments, only its cable, satellite and broadband segment managed to post an inrease in operating revenue during the three quarters, while its media and studio entertainment segment took the biggest hit.

Despite losing its direct-to-home business with the issuance of a cease – and – desist order from the NTC, ABS-CBN said Sky Cable’s revenues still increased four percent year-on-year through its broadband business.

As of end–September, its broadband subsAcribers had increased to over 300,000.

Meanwhile, GMA reported a four percent year-on-year increase in its consolidated revenues during the nine-month period to P12.66 billion.

Advertising revenues, which comprised 91 percent of the company’s revenue pie, stood at P11.47 billion, up two percent from P11.26 billion last year.

“GMA Network and subsidiaries rallied this third quarter, coming from a lackluster second quarter financial performance,” the company said.

“The closure of biggest rival, ABS-CBN, due to the expiration of its broadcast franchise last May 5 and the subsequent denial last July 10 by the House Committee on Legislative Franchises of ABS-CBN’s new application also contributed to the increase in sales due to the shift in some advertising placements. This development partly counterbalanced the general reduction in sales brought about by the slowdown in economic activities due to the pandemic,” GMA said.