ABS-CBN 3-month losses widened sans election ads

ABS-CBN Corp. incurred a wider net loss in the first quarter on weaker advertising revenues, the absence of major film releases, as well as softer cable and broadband sales.

In a disclosure on Monday, the media giant said its consolidated net loss had reached P813 million in the January-to-March period, worsening from the P500-million loss recorded a year earlier.

Consolidated revenues fell 21 percent year-on-year to P3.33 billion, with the company attributing much of the decline to weaker cable TV and broadband revenues.

Its core content production and distribution business generated P2.76 billion in revenues during the quarter, down 13 percent.

Shareholders’ equity fell to negative P66 million, a decline of P813 million from its position at the end of 2025.

Ron Acoba, chief investment strategist at Trading Edge Consultancy, said this reflected financial weakness as the company’s liabilities now exceed its assets.

“For shareholders, this increases the risk of further losses, lower chances of dividends and possible erosion of shareholder value as the company’s P813 million net loss continues to widen,” Acoba said.

“To stabilize operations, ABS-CBN may need to raise fresh capital—if through new shares, existing shareholders could face dilution; if through debt, borrowing may become more expensive and come with stricter lender conditions,” he added.

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Advertising revenues drop

ABS-CBN said advertising revenues declined partly because the comparable quarter in 2025 had benefited from election-related spending.

“Advertising revenue was lower due to the presence of election-related advertising during the first quarter of 2025 and in line with the overall decline in the industry’s advertising expenditure versus the same period last year,” the company said.

By comparison, rival GMA Network also saw its first-quarter profit plunge 87 percent to P102.18 million in the absence of election-related advertising.

ABS-CBN also said global developments this year weighed on consumer sentiment and the domestic economy, further affecting revenues.