The ABC-CBN building in Quezon City (Photo courtesy of ABS-CBN)

ABS-CBN still bleeding heavily but CEO hoping for positive cash flow by year-end

ABS-CBN president Carlo Katigbak expressed optimism about the company's financial turnaround, saying the firm is aiming to achieve positive cash flow by the end of 2024.

Speaking during the annual stockholders meeting, Katigbak highlighted the firm's improving financial performance driven by strong storytelling and support from partners and advertisers.

Recurring revenues for ABS-CBN’s content business increased from P8.9 billion in 2021 to P11.3 billion in 2023, a 27% rise over two years.

Concurrently, recurring expenses decreased by 5% from P15.5 billion in 2022 to P14.7 billion in 2023.

This resulted in a significant reduction in operating loss, down nearly 30% to P3.4 billion in 2023.

Hoping for positive cash flow
ABS-CBN president Carlo Katigbak told shareholders on Thursday that, despite the firm's heavy losses, management is hoping to end 2024 with positive cash flow.

Sky Cable baggage

Despite challenges with Sky Cable's earnings, including increased net losses due to declining pay TV customers, ABS-CBN saw a 19% improvement in consolidated net losses before non-recurring items, reducing to P4.7 billion in 2023 from P5.8 billion the year prior.

However, one-time non-cash charges led to a consolidated net loss of P12.8 billion for the year, Katigbak said.

The ABS-CBN chief said he remains confident about 2024, noting a 22% improvement in first-quarter operating income excluding Sky.

He emphasized: “We hope to finally be cash flow positive by the end of 2024.”

“Cash flow positive” means that a business has more cash coming in than going out. In other words, the amount of money flowing into the business exceeds the amount being spent.

This metric indicates that the company has enough working capital to cover its bills without needing additional funding.

The stock price performance of ABS-CBN Corp. — once the country's largest broadcast network — since it was denied a Congressional license four years ago. CLICK ON IMAGE TO SEE THE ENTIRE GRAPH. (Courtesy of the Philippine Stock Exchange)
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Wednesday, 17 July 2024
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