ABS-CBN mulls bid for new franchise

MANILA, Philippines — Broadcast giant ABS-CBN Corp. has yet to decide whether it will seek a new franchise under the Marcos administration, believing it can return to profitability soon on its sustained expansion in the digital space.

ABS-CBN president and CEO Carlo Katigbak yesterday said the management has yet to reach a decision on whether it will make another push for a broadcast franchise in the 19th Congress dominated by Marcos allies and relatives.

Katigbak informed ABS-CBN shareholders that the management will first evaluate if the pursuit of a new franchise aligns with its long-term strategy to explore fresh platforms.

House Bill 1218, filed by progressive lawmakers in the House of Representatives, seeks to give a 25-year franchise to ABS-CBN. Katigbak said the management knows of this legislative effort, but whether it will support the measure has yet to be determined.

“The filing of a franchise bill is initiated by a member of the Congress, not by ABS-CBN, [but] we understand at present there has been a franchise bill filed. However, at this time, we have yet to decide whether a new franchise is aligned with our strategic plans,” Katigbak said.

Looking ahead, Katigbak said ABS-CBN is projected to return to profitability in the near term, as its finances improve with its presence expanding in various platforms.

ABS-CBN managed to trim its net loss to P5.67 billion last year from P13.53 billion in 2020, due to cost reductions it undertook resulting from its exit from free TV.

“This improvement and the continuing upward trajectory of financial performance are indicators that a return to profitability is possible in the near term,” Katigbak said.

Further, Katigbak said, ABS-CBN slashed its outstanding debt to P21.5 billion in 2021 from P26 billion in 2020. As of latest, the Lopez-led network owes a total of P18.4 billion to creditors, but it plans to end the year with just P14 billion in debt.

With no broadcast franchise in hand, ABS-CBN will focus its content production on digital sites. Katigbak said online channels operated by ABS-CBN attracted 109 million users and brought in P2.3 billion in revenues last year.

“We are determined to build a future for ABS-CBN that doesn’t solely rely on broadcast; instead, we are doubling down on excellent storytelling and which has a wider audience on any network from any platform,” Katigbak said.

In 2020, ABS-CBN stopped airing on free TV when Congress denied its bid for a fresh franchise, but the firm managed to survive the shutdown by transferring its content to digital platforms and renting airtime from A2Z and TV5.