Broadcasting group ABS-CBN Corp. managed to trim its net loss by almost 30 percent in the first quarter, bolstered by election advertising revenues alongside cost-cutting measures to stay afloat after losing its free television franchise two years ago.
In a regulatory filing on Monday, the Lopez-led media company reported that its net loss attributable to the parent firm had been reduced to P1.38 billion from January to March from P1.95 billion in the same period last year.
This was supported by consolidated revenues climbing 18.6 percent to P4.65 billion from P3.92 billion year-on-year in the first quarter.
Advertising revenues were up nearly 60 percent to P1.49 billion, which ABS-CBN attributed to “both political placements and growth in regular advertising as the company continues to expand its coverage through its partnership [with] various reputable companies.”
Consumer sales, meanwhile, rose by 5.8 percent to P3.17 billion for the period. Revenues were generated from the licensing and distribution of the media company’s films and programs in different countries, including those in Asia, Africa, Middle East and Europe.
Production costs—which include personnel expenses, talent fee and other program spending—were down by 6.9 percent to P1.77 billion in the first quarter. Cost of sales and services dropped by nearly 10 percent to P1.82 billion for the period.
“Following the events of the franchise denial and the impact of COVID-19, the company has continued to implement cost-cutting measures to further manage the company’s financial performance,” it explained.
In 2020, the House Committee on Legislative Franchises denied the application of ABS-CBN to renew its franchise due to alleged tax violations and foreign ownership concerns, among others, which the company refuted.
“The company decided to align the number of programs based on the partnerships closed by the company with various free-to-air operators,” ABS-CBN said, which resulted in lower production costs. It secured a partnership with Zoe Broadcasting Network Inc. back in 2020 to broadcast the media firm’s programs via blocktime at Channel 11 A2Z.