Metro Manila (CNN Philippines, June 8) — ABS-CBN’s losses widened in 2020 as it reels from the denial of its bid for a fresh legislative franchise.
In its annual report published with the local bourse Tuesday, the broadcast giant tallied a net loss of ₱13.5 billion last year – up by a whopping 411.5% from ₱2.64 billion in 2019.
ABS-CBN reported a 50% drop in revenues to ₱21.4 billion in 2020, and a 69.2% plunge in advertising revenues to ₱7.06 billion, which the network attributed to its “absence” in free-to-air advertising space.
The Lopez-owned company first went dark on May 5, 2020 after the National Telecommunications Commission (NTC) issued a cease-and-desist order. ABS-CBN failed to get back on air after the House Committee on Legislative Franchises thumbed down its bid for a fresh 25-year license for its broadcast operations.
Consumer revenues also took a blow from the NTC’s order – falling by 27.8% to ₱14.35 billion. The directive from the regulatory body “prohibited the Company in engaging in Sky Cable’s DTH services and distribution of TV Plus Boxes,” ABS-CBN said.
The COVID-19 pandemic also forced the network to shut down “ancillary operations such as Heroes Burger, Kidzania Manila, and Studio XP,” it added.
ABS-CBN also recounted how it was compelled to lay off employees effective end-August last year in a bid to stay afloat. Additional separation benefits amounted to ₱1.1 billion in 2020 in addition to retirement costs, the network said.
Still, the broadcast firm pivoted to alternative ways to provide services. It launched digital streaming channel “Kapamilya Channel” last June which featured ABS-CBN’s entertainment and news programs.
The company also struck a blocktime deal with Zoe Broadcasting, with ABS-CBN programs airing under the “A2Z” channel.
“These initiatives allowed ABS-CBN to be welcomed back to Filipino households worldwide,” the network said, noting these platforms hauled in ₱1 billion in revenues in the last quarter of 2020.
ABS-CBN also merged its proprietary digital application with “IwantTFC” to expand its global reach, and distributed more than 180 titles to parts of Asia, Africa, the Middle East, and Europe – along with “various Over-the-Top platforms generating over USD 5.67 million,” the network said.
