ABS-CBN Corp. delivered its largest debt cut in years in 2025 after selling a large portion of its headquarters in Quezon City, but its balance sheet recovery is far from over.
The Lopez-led media company reduced borrowings by about P4 billion, bringing total debt down to P11.8 billion, as proceeds from asset sales boosted repayments.
The media giant also slashed borrowings by nearly P10 billion since its franchise was killed during the Duterte administration in 2020, highlighting a sustained effort to reduce debt obligations.
This is equivalent to nearly half of its total debt over that period.
What drove the debt reduction in 2025?
The company sold most of its nearly 4-hectare Mother Ignacia headquarters to Ayala Land for about P6.2 billion, using the cash to pay down loans and support its day-to-day needs.
Part of the drop came from actual payments, with ABS-CBN settling P2.84 billion in loans. The rest came mainly from Sky Cable refinancing its loans into longer-term agreements, along with other adjustments.
Trade-offs
ABS-CBN’s debt reduction came with trade-offs.
For example, the Ayala Land deal was structured to be paid over 10 years. Instead of waiting, ABS-CBN sold the rights to the future payments to Bank of the Philippine Islands (BPI) to get cash upfront and pay down debt.
It accepted a P1.53 billion loss in exchange for getting the cash immediately, which led to a significant non-recurring property loss in its 2025 results.
Debt and lenders situation
ABS-CBN owes about P5 billion to BPI, its single-largest lender, and P4.75 billion to UnionBank of the Philippines. These loans have already come due and were extended into 2026.
The BPI debt was extended to April 30, 2026, while UnionBank loans were extended to June 30, 2026.
At the same time, its subsidiary Sky Cable extended its debt payment terms, refinancing P4.25 billion into longer-term loans that will run until 2032.
Sky Cable’s restructuring also followed its partnership with tycoon Dennis Anthony Uy’s Converge ICT to improve its broadband services.
Balance sheet recovery still reliant on asset sales
ABS-CBN has continued to reduce debt, but repayments still rely heavily on asset sales.
This shows that shareholder support—and further cost reduction efforts—remain critical to the company’s continued operations amid ongoing losses.
ABS-CBN may need additional funding as it works to grow its content business.
Its 2025 cash flow statement showed a P500 million injection from stockholders, signaling support from its owners. It ended the year with cash of P1.03 billion.
Even so, its current liabilities exceeded its current assets by P12.4 billion last year, showing the significant work still needed to repair its balance sheet.
Major shareholders commit to ABS-CBN’s continued operations
In a recent statement, members of the Lopez family representing majority ownership in the media firm, signaled they will continue to support the company.
This comes amid an internal family disagreement over its future, after Federico “Piki” Lopez voted to shut down operations last year to stem losses but was outvoted by the majority.
ABS-CBN losses narrowed to P4.72 billion in 2025, helped by cost cuts and content revenues.
—Edited by Miguel R. Camus
