ABS-CBN Corp. said it posted a huge net loss in the first half of the year mostly because of the government’s order to stop its broadcasting operations last May.
The Lopez-led broadcasting posted a net loss of P3.93 billion in the January to June period from P1.46 billion net income in the same period last year.
The company’s advertising revenues suffered a sharp decline in the second following the issuance on May 5, by the National Telecommunications Commission (NTC) of a cease and desist order (CDO) to the company, prohibiting its continuing broadcast operations effective immediately.
The NTC also issued a CDO to the company to stop e its digital TV transmission in Metro Manila using channel 43.
“These events in addition to the COVID-19 pandemic that the country is facing, drove down both the advertising and consumer revenues of the company,” ABS-CBN said.
ABS-CBN posted total revenues from digital platforms amounted to P685 million, lower by 8 percent compared to the same period last year.
“After NTC issued the CDO to the Company, prohibiting free-to-air broadcast operations, daily active users for Iwant platform reached over 1 million and daily views of over 1.6 million,” the company said.
“ This provided the Company an avenue to alleviate the shortfalls driven by the COVID-19 pandemic during the first quarter of 2020,” it added.
Sky’s revenue rose by 10.4 percent year-on-year due to the increase in broadband and direct to home (DTH) subscribers by 56,000 and 405,000, respectively.
Kidzania and Studio Experience generated P94 million in revenues for the first half of 2020. As a result of the COVID-19 pandemic, the Company decided to cease operations effective August 31, 2020.
ABS-CBN”s direct costs and expenses amounted to P16.7 billion, or a 11.4 percent decline year-on-year. Production cost decreased by 16.9 percent due to the Company’s decision to cease producing new content amidst the COVID-19 pandemic and cooperate with the Philippine Government’s enhanced community quarantine efforts.