Led by president and CEO Carlo Katigbak, the media giant is also working on raising cash through asset sales to meet its financial obligations while steadily reducing its losses through earnings from content production and advertising revenues, its latest financial filing showed.
“As of August 15, 2024, the parent company’s discussions with the banks on the further extension of the long stop date until Dec. 30, 2024 is ongoing,” ABS-CBN said on Wednesday.
“Ongoing discussions with its lenders include, but not limited to, the waiver of financial ratios for 2024, extension of long-stop date, and possible options for the early settlement of the loan through sale of certain assets,” it added.
ABS-CBN confident in settling debts
Based on the filing, ABS-CBN’s loans amounted to P11.93 billion, while SkyCable has P4.5 billion in bank debts.
Total bank loans amounted to P16.43 billion, which was lower by 4.4 percent compared to the end of 2023.
“Management assessed that the group will be able to maintain its positive cash position and settle its liabilities as they fall due within 12 months from the end of the reporting period,” ABS-CBN said in the filing.
Loan deadline extension
Due to heavy business losses, ABS-CBN risked default in 2020 when President Duterte’s allies in Congress killed the company’s broadcast franchise.
To address this, the company entered into an agreement with lenders. This deal expired at the end of 2023, prompting ongoing talks for an extension.
In its filing, ABS-CBN said losses during the first six months of the year narrowed by 5 percent to P2.1 billion, even as revenues dipped 11 percent to P7.8 billion.
The revenue decline was mainly due to lower licensing deals while advertising earnings increased.
Property sale
The company recorded a 328 percent increase in “other income,” which reached P849 million as of the first semester.
Last February, ABS-CBN sold properties worth P485 million, the filing showed. It ended the first semester with cash assets of P1.1 billion.
Converge ICT partnership
Last month, ABS-CBN’s SkyCable and fiber internet giant Converge ICT entered into a strategic deal allowing Sky to use the latter’s nationwide broadband backbone, eliminating the need for heavy investments in expansion.
The deal was also meant to address SkyCable’s bank loans, which are currently being negotiated with the help of Converge’s principals, InsiderPH earlier reported.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
