Based on ABS-CBN’s latest financial filing, the cable and broadband firm secured deals with lenders last February to classify P4.25 billion that were immediately due into non-current debts, meaning there was less pressure to repay these obligations.
Loan pressures ease
Sky, whose current loans were cut to P228.8 million, owes money to Bank of the Philippine Islands, BDO Unibank, and Security Bank.
The entire balance was deemed current, or due to be paid soon, at the end of last year after the company failed to meet financial covenants in its loan agreements.
The new agreement with creditors came after negotiations aimed at easing Sky’s repayment pressure and restoring lender confidence.
What happened?
This came months after Sky sealed a strategic alliance with tycoon Dennis Anthony Uy’s Converge ICT Solutions in July 2024.
The partnership, structured as an infrastructure-sharing deal, helps Sky continue operations while keeping the pioneering brand alive amid mounting financial challenges after losing its franchise during the Duterte administration.
Uy earlier said the migration of Sky’s customers to Converge’s modern fiber network would be completed this year.
Sky’s losses trimmed
Apart from bank loans, Sky also owes $4 million to Sampaquita Communications PTE, a major shareholder with a 40 percent economic interest.
Based on the filing, the loan maturity was extended from March this year to December 2025.
Meanwhile, Sky continues to navigate a challenging business environment with a continued decline in subscribers.
Revenues during the first quarter of 2025 fell 27 percent to P1.1 billion, although continued cost efficiency measures significantly reduced losses by 50 percent to P171 million.
ABS-CBN tightens focus
Efforts at Sky mirror broader moves at ABS-CBN to cut non-core assets and slash debts while growing its core business and content production capabilities.
On the parent level, ABS-CBN also obtained a loan extension from BPI to move repayment of a P5 billion loan from March 1 to September 1, 2025.
ABS-CBN’s advertising revenues in the first quarter jumped 25 percent to P1.79 billion, thanks to a surge in political advertising and regular placements.
Content production is another major driver, with revenues rising 21 percent to P3.2 billion, bolstering net income by 49 percent.
“A significant contributor to this quarter’s performance was the sold-out concert of the breakthrough group BINI in the Philippine Arena,” ABS-CBN said.
It also cited partnerships with television networks such as GMA Network and TV5, and streaming providers such as Netflix and Amazon Prime.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
