ABS-CBN cuts net loss by half

MANILA, Philippines — ABS-CBN Corp. proved it can keep its business afloat even without a legislative franchise, slashing its net loss by half in 2022 as advertising and consumer sales rebounded.

In a regulatory filing, ABS-CBN said its net loss declined by 56 percent to P2.46 billion last year, from P5.64 billion in 2021, on an across-the-board growth in revenue sources.

ABS-CBN said revenue rose by eight percent to P19.2 billion, outpacing the four percent uptick in costs and expenses to P23.45 billion.

Broken down, advertising income swelled by a fourth to P6.4 billion, while consumer sales went up by two percent to P12.8 billion. ABS-CBN said advertising placements grew in 2022 due to election-related materials brought in by political candidates.

As such, ABS-CBN saw its revenue pie shake up a bit, as consumer sales slid to 67 percent and advertising revenue rose to 33 percent. In 2021, the consumer segment took up 70 percent, while the advertising bracket accounted for 30 percent.

On the operational side, ABS-CBN said revenue from content production and distribution surged by 18 percent to P11.1 billion in 2022, from P9.34 billion in 2021.

ABS-CBN managed to improve its income from content production and distribution through deals and partnerships signed with local and international clients.

Without a franchise to air on free TV, ABS-CBN banked on its blocktime agreements with media channels A2Z, GMA Network Inc. and TV5 Network Inc. to air its entertainment and news programs.

Also, the network decided to become a content creator for streaming sites like Netflix and Viu to gain international reach for its films and shows. ABS-CBN distributed more than 381 titles in Africa, Asia, Europe and the Middle East in 2022, generating P1.3 billion from the global release of its materials.

Meanwhile, ABS-CBN reported a four percent decline in its cable and broadband revenue to P8.1 billion. ABS-CBN’s telco unit Sky Cable Corp. lost its privilege to extend direct-to-home services when the network failed to renew its legislative franchise in 2020.

ABS-CBN cut its spending for capital expenditures, including for program rights acquisition, to P2.9 billion last year, from P3.6 billion in 2021.

In 2022, ABS-CBN president and CEO Carlo Katigbak informed shareholders that the firm looks to return to profitability in the near term by focusing on content creation for digital channels.