Lopez Holdings swings to loss after power, media units underperformed

MANILA, Philippines — Lopez Holdings Corp. sank into the red in 2020 after its media and power businesses posted lackluster earnings in the past pandemic year.

In a disclosure to the stock exchange on Monday, Lopez Holdings reported a net loss of P2.625 billion last year, a reversal from P5.3-billion net income posted in 2019. Incorporated in 1993, the company serves as the holding firm of First Philippine Holdings Corp. (FPH), its power unit, and media firm ABS-CBN Corp.

The company declined to give more details about its financial performance pending the release of its annual report to the local bourse. But the lackluster bottom-line number was not surprising at all since 2020 was a rollercoaster year for the Lopez family.

“The results were due to the weaker performance of operating units under investee (FPH), a consequence of the economic slowdown due to COVID-19 quarantine measures, as well as, the net loss posted by investee ABS-CBN,” the company said.

In May last year, President Rodrigo Duterte's allies at the House of Representatives killed ABS-CBN’s application for renewal of its its 25-year franchise, effectively shutting down its free TV and radio channels for the first time since late dictator Ferdinand Marcos Sr. did the same during the martial law era.

The non-renewal of the network’s license left thousands of ABS-CBN employees without jobs amid a pandemic-induced recession. To stay afloat, the company is diverting its resources to its digital shift, although some analysts believe this strategy is yet to pay off. The media firm is yet to release its financial report for the entire 2020 but as of September last year, ABS-CBN posted a net loss of P7.2 billion.

Meanwhile, FPH saw its net income plummet 21.6% year-on-year to P9.86 billion in 2020 “mainly reflecting the financial impact of the community quarantine measures implemented by the government in response to the COVID-19 pandemic.”

Lopez Holdings earlier announced its plan to delist from the Philippine Stock Exchange as part of the Lopez Group’s decision to streamline its corporate structure by cutting the number of its listed holding firms. But the company later shelved the plan as it would still maintain the required minimum public float level.

Shares in Lopez Holdings Corp. traded flat to close at P3.30 apiece on Monday.