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Business

ABS-CBN cuts net loss in 2021

Richmond Mercurio - The Philippine Star

MANILA, Philippines — ABS-CBN Corp. has cut its net loss by more than half last year following a significant reduction in its expenses.

ABS-CBN incurred a net loss of P5.67 billion in 2021, lower by 58.1 percent than the P13.53 billion net loss recorded in the previous year.

EBITDA improved to P615 million, soaring 109.8 percent year-on-year.

Total costs and expenses during the year declined by 32.8 percent to P23.26 billion from P33.55 billion.

These include production costs, cost of sales and services, and general and administrative expenses.

“Following the events of the franchise denial and the impact of COVID, the company enforced stringent cost cutting measures to further manage the company’s financial performance,” ABS-CBN said.

ABS-CBN generated consolidated revenues of P17.83 billion from advertising and consumer sales last year, 16.8 percent lower from P21.42 billion in 2020.

Advertising revenues decreased by 25 percent year-on-year due to the absence of the company in the free-to-air advertising space following the cease-and-desist order issued by National Telecommunications Commission on the company’s broadcast operations on May 2020, and the eventual adoption of a resolution denying its franchise application by the House Committee on Legislative Franchises on July of the same year.

ABS-CBN said the cease-and-desist order similarly affected consumer sales as this prohibited the company from engaging in Sky Cable’s direct to home services and distribution of TV Plus boxes.

“In addition, the impact of the COVID-19 outbreak resulted in the company being unable to generate revenues from concerts and events as well as box office receipts,” the company said.

“The pandemic also resulted in the cessation of various ancillary operations such as Heroes Burger, Kidzania Manila and Studio XP. These unfortunate events resulted in a decrease in consumer revenues of P1.8 billion,” it said.                                       

ABS-CBN

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