As indicated by its narrowing quarterly losses, ABS-CBN is likely on track to profitability.
After bleeding a massive PhP7.3 billion net loss from January to September 2020, ABS-CBN has trimmed down its losses to just PhP3.78 billion for the same period this year. That’s a 48% improvement, although the company remains in the red.
Revenues are also showing massive improvement as its sales stood at PhP12.7 billion for the first three quarters of the year. That’s still 25% lower than the PhP17 billion reported from the same period last year. It is vital to note the decreasing trend of the Network’s quarterly losses.
Net loss for the first and second quarters of the year are recorded at PhP1.94 billion and PhP1.44 billion, respectively. More astonishing, however, is that net loss for the third quarter (July – September) has narrowed down to less than PhP400 million.
That’s more than a 70% reduction from the previous quarter (April -June).
Sales for the third quarter of the year surged to PhP4.5 billion, higher than the PhP3.9 billion and PhP4.2 billion, for the first and second quarters of the year, respectively.
As the upcoming election season is about to get full-blown, robust advertising spending from politicians will fill the Network’s coffers. At this early, political ads have been being placed on the Network’s various programs. It could be a glimpse of what the scenario is by the start of campaign season next year.
There is a possibility the Network may return to being profitable next year, given the trend in its net losses.
The improvement can be attributed to its cost-cutting measures when it began implementing after its free TV shutdown. Expenses went down from PhP6 billion and PhP5.7 billion in the first and second quarters, respectively, to PhP4.9 billion in the 3rd quarter.
ABS-CBN Corporation has also been improving at the stock market. Its rising stock price per share is a strong indication of its improving financial health, which [only] means that the embattled media giant is already on track to recovery.