ABS-CBN reduced Jan-Sept net loss on belt tightening

Media giant ABS-CBN Corp. reduced its net loss by 17 percent to P1.99 billion in the first nine months as belt-tightening measures made up for the slack in revenues, particularly from the cable TV and broadband segment.

But for the third quarter alone, net loss widened to P1.28 billion from P389.87 million in the same period last year without the extraordinary bump in advertising related to the midterm elections seen in the first semester.

These figures refer to net losses attributable to equity holders of the parent company.

Total revenues for the nine-month period saw a 3-percent drop to P11.75 billion compared with P12.12 billion a year ago.

Although revenues from the content production and distribution segment increased by P1.13 billion, driven by both advertising and consumer revenue, there was a P1.5-billion drop in contribution from the cable TV and broadband segment due to the continued decline in subscriber base.

Advertising revenue contributed P5.5 billion, up by P694 million, propelled by regular as well as election-related advertising in the first semester. Leading primetime shows, including “Batang Quiapo,” “Incognito,” “Saving Grace,” “It’s Okay to Not Be Okay” and “TV Patrol” were among the biggest drivers.

Consumer revenues grew by 13 percent amounting to P3.66 billion. This was driven by the box office hits delivered by the film division, namely: “And the Breadwinner is…” and “My Love Will Make You Disappear.”

The segment also benefited from the relaunch of global streaming platform iWant and live events highlighted by BINI’s international tour in Dubai, London, Vancouver, Toronto and United States.

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Meanwhile, consolidated operating costs and expenses declined by 11 percent to P13.52 billion.

“This reduction was achieved through the continuous implementation of cost control measures, resulting in decreased general and administrative expenses, as well as lower employee costs,” the media company said.

The media giant, which had lost its bid to renew its congressional franchise, transitioning from a free TV broadcaster to a producer of content aired on online platforms. However, this also led to massive staff lay-offs. —With a report from Nami D. Padilla