November 16, 2024 | 12:00am
MANILA, Philippines — ABS-CBN Corp. slashed its net loss by a fifth by slashing costs in content production and internet delivery.
Based on its financial report, ABS-CBN brought down its net loss by 22 percent to P2.59 billion between January and September from P3.33 billion a year ago.
Revenue dipped by 10 percent to P12.12 billion as content production and distribution grew flat, while cable TV and broadband fell by 25 percent on declining subscriptions.
However, ABS-CBN also trimmed business costs to mitigate the impact of lower revenues. As a whole, the company owned by the Lopezes cut its expenses by six percent to P15.19 billion, benefiting from fewer equipment and facilities to run.
To make up for dipping revenue from TV production, ABS-CBN hopped on digital channels and signed international partnerships to gain more earnings. It boosted its online presence in streaming platforms to cover for its exit on free TV.
As of September, ABS-CBN has gained P8 billion in revenues from content production in digital outlets and for foreign partners.
ABS-CBN has yet to resolve the financial trouble of its broadband arm Sky Cable Corp., as the unit booked just P4.12 billion in revenue, down from last year’s P5.46 billion.
Sky Cable lost its right to offer direct-to-home services since its parent ABS-CBN failed to land a new franchise at the height of the pandemic in 2020.
In July, Sky Cable signed a commercial agreement with Converge ICT Solutions Inc. to scale up its network capabilities. The agreement enables Sky Cable to hook up Converge’s fiber network, which is one of the widest in the Philippines.
Prior to this, telco leader PLDT Inc. was supposed to take over Sky Cable for P6.75 billion. The deal was scrapped over undisclosed reasons. The buyout would have lifted a financial burden from ABS-CBN’s shoulders, allowing it to focus on content production.
Be the first to comment