ABS-CBN Corp. is studying whether it will renew the mobile network sharing agreement with Globe Telecom Inc. set to expire in June this year.
“We recognized the business model is not sustainable financially, so we continue to discuss with Globe. It’s an ongoing discussion with Globe,” ABS-CBN chief financial officer Rolando Valdueza said.
Under the agreement signed in May 2013, Globe will provide the capacity and coverage on existing cellular mobile telephony network to ABS-CBN Convergence Inc. on a nationwide basis.
The parties may also share assets such as servers, towers and switches.
ABS-CBN Corp. 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.