ABS-CBN Corp. said Thursday it incurred a net loss of nearly P4 billion in the first half after the government ordered it to stop broadcast operations in May.
The broadcast unit of the Lopez Group posted a net loss of P3.93 billion in the six-month period, a reversal of the P1.46-billion net income it posted in the same period last year.
Advertising revenues suffered a sharp decline in the second quarter following the issuance of a cease-and-desist order against Channel 2 on May 5 by the National Telecommunications Commission.
The NTC also issued a CDO against the company’s 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 said revenues from digital platforms reached P685 million in the first half, down by 8 percent from 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 said.
Revenue of cable and broadbant unit Sky increased 10.4 percent year-on-year as broadband and direct-to-home subscribers went up by 56,000 and 405,000, respectively.
Kidzania and Studio Experience generated P94 million in revenues in the first half.
ABS-CBN’s direct costs and expenses amounted to P16.7 billion, representing a 11.4-percent decline year-on-year. Production cost decreased by 16.9 percent following its decision to cease producing new content amid the pandemic and cooperate with the government’s enhanced community quarantine efforts.
Meanwhile, ABS-CBN announced the closure of ABS-CBN Tulong Center this month after providing free legal and medical assistance to thousands of Filipinos for many years.
