Group-wide losses swelled to P12.8 billion last year versus P2.6 billion in 2022, the company’s latest annual report showed. This was an increase of nearly five times.
Sky Cable impairment loss alone contributed about P9 billion, although these were non cash charges on goodwill, property and equipment, and intangible assets, the report showed.
“The increasing and intensified popularity of video-on-demand platforms coupled with the recent events in Sky Cable have adversely impacted Sky Cable's business, specifically the number of its subscribers and subscriber base outlook,” ABS-CBN said.
ABS-CBN was in talks to sell Sky Cable to PLDT Inc. before the telecommunications giant backed out despite all conditions being cleared by regulators.
ABS-CBN said overall revenues were relatively flat at P18.51 billion last year. Despite the drop in Sky Cable’s sales, advertising revenue saw a 16 percent boost to P6.67 billion, signalling growing prospects in its core content production business.
ABS-CBN’s management signalled last January that it was closing in on its strongest performance in 2023 since television services were shuttered during the Duterte administration.
In recent weeks, the company sealed a partnership with GMA Network for its popular “It’s Showtime” program and news program TV Patrol on AllTV.
Large debts continue to pose a headache for ABS-CBN as it recovers from the loss of its TV franchise four years ago.
Current liabilities outpaced assets by P19.1 billion last year while ABS-CBN’s bank loans stood at P12.7 billion.
The company previously secured waivers from banks due to its breach of certain loan terms.
Negotiations with creditors to extend loan deadlines due on June 30 this year are ongoing as the filing of this report, the company said.
ABS-CBN’s management said it will “be able to maintain its positive cash position and settle
its liabilities as they fall due within the next 12 months through management’s plans on future actions”.
The company plans to bolster its balance sheet by selling non-core assets such as its aviation company and unused real estate.
This includes INAEC Aviation Corp., a helicopter and private plane leasing firm. ABS-CBN aims to generate P191 million from its sale this year.
The company said properties under mortgage with an appraised value of P1.45 billion will be sold within the year.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
