ABS-CBN Reports ₱3-Billion Net Loss in Second Quarter

ABS-CBN Corp. (ABS) reported a net loss of ₱3.16 billion for the second quarter of 2020, as compared to a ₱695.80 million profit for the same period last year after Philippine lawmakers rejected ABS’s bid to secure a 25-year broadcast franchise.

ABS said “Advertising revenues suffered a sharp decline in the second quarter of 2020 following the issuance on May 5, 2020 by the National Telecommunications Commission (NTC) of a Cease and Desist Order (CDO) to the company, prohibiting its continuing broadcast operations effective immediately,”

ABS reported advertising revenue for the first half of the year of ₱5.20 billion, a 53.9% fall from ₱11.29 billion for the same period last year.

ABS’s total revenues for the second quarter were report to be ₱4.68 billion, a 55.2% drop from ₱10.44 billion.

The coronavirus pandemic, added with the cease-and-desist order in May from the NTC, and the separate order in June against ABS’s digital transmission in Metro Manila have been incredibly costly to the company’s finances.

ABS announced in July that it would implement a retrenchment program effective on Aug. 31.

ABS said the corporation plans to continue to operate in other businesses that do not require a broadcast franchise, such as international licensing and distribution, digital and cable businesses, and syndication of content through streaming services.