ABS-CBN trims loss as digital shift pays off

MANILA, Philippines — ABS-CBN Corp. has taken a huge leap in trimming its losses, drawing a clear path toward profitability as revenue grows and expenses go down.

Based on its financial report, ABS-CBN slashed its net loss by 60 percent to P852 million in the first half from P2.13 billion a year ago, raising hopes it would soon become profitable again.

ABS-CBN improved its revenue by six percent to P8.28 billion and paired this with a 12-percent reduction in expenses to P8.94 billion.

The media giant is aiming to become profitable again by 2026, banking on the success of its strategy to maximize digital channels for the airing of its content. ABS-CBN’s return to profit also comes with a price, as it had to let go of assets and talents to bring down spending.

In the six months to June, ABS-CBN saw revenue from content production and distribution go up by 29 percent to P6.36 billion, boosted by ad placements for the midterm elections. Likewise, the company drew higher ratings for its primetime shows “Batang Quiapo” and “Incognito.”

ABS-CBN also picked up the pace for its consumer segment thanks to the box-office showing of “And The Breadwinner Is” and “My Love Will Make You Disappear.”

Girl group BINI also contributed to ABS-CBN’s revenue by going on an international tour across 14 cities, including Dubai, London, Toronto and Vancouver.

Revenue was also driven by the landmark collaboration between ABS-CBN and GMA Network Inc. featuring their celebrities in reality show “Pinoy Big Brother.”

However, ABS-CBN has yet to solve the puzzle of its broadband unit Sky Cable Corp. Revenue from cable and broadband went down by 33 percent to P1.92 billion on the continuous decline in its subscriber base.

ABS-CBN president and CEO Carlo Katigbak said the company can turn a leaf financially if it sustains the momentum it is riding on right now. ABS-CBN expects to cut debts to below P13 billion this year once it wraps up the sale of its Quezon City property.

ABS-CBN sold more than 30,000 square meters of its 44,027.3-square meter property in Quezon City for P6.24 billion to Ayala Land Inc., proceeds of which would pay off expiring loans.

The company, once the country’s leading broadcaster, spiraled to a net loss when Congress denied its bid for a fresh franchise at the height of the pandemic in 2020.