ABS-CBN on way to financial recovery

MANILA, Philippines — Media giant ABS-CBN Corp. continues to work on achieving an asset light business model following its exit on free TV, and is confident it would turn cash flow positive by year-end.

Top officials of ABS-CBN, which used to be the largest broadcaster in the Philippines, said they are ensuring that more money is coming in than going out to nurse the company’s finances.

During its annual stockholders’ meeting, ABS-CBN president and CEO Carlo Katigbak said the company cut its operating loss, excluding Sky Cable Corp., by 22 percent in the first quarter, expressing confidence it can be cash flow positive by the end of the year.

“We remain confident that 2024 will be an even better year than last year, and so far ABS-CBN’s operating income, excluding Sky, is negative P780 million versus negative P1 billion during the previous year. We hope to finally be cash flow positive by the end of 2024,” Katigbak said.

Likewise, ABS-CBN is disposing of legacy assets it used to operate during its reign on free TV. The company is keeping only the equipment and properties that it needs to produce content.

“We have laid the foundation for a company that is now asset light and content focused, as many of our assets unrelated to storytelling have been or are being sold,” Katigbak said.

In 2023, ABS-CBN sustained an impairment loss of P9.12 billion, recognizing the depreciation of its broadcasting assets since it is no longer using them to air on free TV.

Meanwhile, the company grew its content revenues by six percent to P11.3 billion last year, from P10.7 billion in 2022, reaping the fruits of its gamble to produce for digital streamers and former rivals.

If there is one thing holding ABS-CBN back, it is Sky Cable. Katigbak said Sky Cable’s net loss stands at P653 million as of 2023, and ABS-CBN is finding it difficult to keep it afloat due to the decline in pay TV subscription and lack of funds to improve its offering.

Still, ABS-CBN is determined to enhance the business viability of Sky Cable and a strategy will be disclosed as soon as it is finalized. ABS-CBN was supposed to dispose of Sky Cable through a P6.75 billion deal with PLDT Inc., but the transaction was abandoned by both parties.