ABS-CBN Corporation and GMA Network Inc. encountered financial challenges in 2023.
While GMA Network experienced a decline in income, ABS-CBN reported significant losses, largely attributed to factors such as the absence of political advertisements and impairment costs.
GMA Network, led by Gilberto Duavit Jr., witnessed a notable 42 percent decrease in earnings, dropping to P3.17 billion. In contrast, ABS-CBN, under the management of the Lopez family, reported a considerable increase in net losses, soaring to P12.8 billion compared to P2.6 billion in the previous period.
Both media giants also saw a reduction in revenues. GMA’s revenues decreased by 13 percent to P18.64 billion, mainly due to a decline in advertising sales, which fell to P17.18 billion from P20.23 billion. The absence of political advertisements, valued at over P3 billion, significantly impacted the company’s advertising revenue, particularly affecting flagship channel GMA 7 and its radio segment.
Advertising sales accounted for over 90 percent of GMA Network’s total revenues in 2023. Meanwhile, ABS-CBN’s revenues remained relatively stable at P18.51 billion. The company experienced a 16 percent increase in regular advertising revenue, offset by a decline in consumer sales.
A major contributor to ABS-CBN’s negative performance was a substantial impairment loss of P9.1 billion in its broadband and cable television unit, Sky Cable. The termination of the planned P6.75-billion sale of Sky Cable to PLDT Inc. prompted ABS-CBN to explore alternative solutions to settle its debt obligations, which stood at P12.6 billion by the end of 2023.
ABS-CBN is currently in discussions with its lenders to extend the deadline for debt settlement to June 30, 2024. Additionally, production costs for prime-time programs and movies increased by 2 percent to P7.41 billion for ABS-CBN and climbed to P8.17 billion for GMA Network.
Despite financial challenges, both media companies have engaged in collaborations following ABS-CBN’s franchise denial. Earlier this year, ABS-CBN’s popular noontime show, ‘It’s Showtime,’ commenced airing on GMA 7, replacing ‘Tahanang Pinakamasaya.’
