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Thursday, March 28, 2024

ABS-CBN to shut down remittance operations

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Broadcast network ABS-CBN Corp. said Monday it will shut down its remittance business in the United States, Canada and the United Kingdom by the end of June because of significant losses. 

ABS-CBN said in a disclosure to the stock exchange units ABS-CBN Global Remittance Inc., ABS-CBN Canada Remittance Inc. and ABS-CBN Europe Remittance Ltd. with licenses to engage in money service and transmission business in California and Illinois in the US, Canada and the United Kingdom, respectively would cease operation by June 30.

“The decision to cease business operations is based on the collective financial performance of the companies in the past years which showed significant losses,” ABS-CBN said. 

“As a result, the business was no long considered viable,” the listed company led by the Lopez family said.

ABS-CBN said the three companies accumulated total losses of P16.18 million or $310,233 during their operations.

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“The cessation of the business operations of the companies has no material impact on the business, financial position, performance and operations of ABS-CBN Corp,” it said. 

ABS-CBN earlier reported a net income of P3.16 billion in 2017, down 10.3 percent from P3.53 billion in 2016 in the absence of election-related advertisements. 

The company  generated consolidated revenues of P40.7 billion from advertising and consumer sales last year, representing a 2.3 percent year-on-year decline from 2016.

Advertising revenues decreased 10.8 percent year-on-year because of high election-related advertising placements in the first half of 2016.

Excluding election related placements, advertising revenues in 2017 went down by only 0.3 percent  year-on-year, it said.

Consumer sales increased P1.62 billion mainly resulting from the sale of ABS-CBN TVPlus and higher revenues from Sky Cable’s broadband and direct-to-home business.

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