ABS-CBN’s net loss rose to 13.5 billion pesos in 2020 mainly due to its broadcast shutdown.
In its latest financial report published Tuesday, June 8, the Kapamilya network accounted its net loss for 2020 at 13.5 billion up by more than 400% from 2019’s 2.64 billion.
Its consolidated revenue on the other hand was down by 50% at 21.4 billion from 2019’s 42.8 billion pesos.
ABS-CBN 2020 results:
Losses +400% to P13.53B, revenues -50% to P21.42B due to Duterte admin shutdown of free-to-air broadcasts.
ABS paid P1.1B in separation benefits to employees. Company cut over 4,500 jobs, including 2,674 regular employees. @InquirerBiz
— Miguel R. Camus (@miguelrcamusINQ) June 8, 2021
ABS-CBN’s steep decline in revenue is mainly contributed by the decrease in its advertising revenue which only accounted for 7 billion in 2020 from 22.9 billion in 2019 or more than 200% decrease.
Consumer sales are also down by 27.8% to 14.35 billion after NTC ordered the network to stop “in engaging in Sky Cable’s DTH services and distribution of TV Plus Boxes,” according to ABS-CBN’s disclosure.
Additionally, ABS-CBN has also paid 1.1 billion pesos in separation benefits to 4,500 employees including 2,674 regular employees.
ABS-CBN has been bleeding financially since the broadcast shutoff in May 2020 and the subsequent denial of its franchise application by Duterte-backed Congress. Many business units have to close down due to the shutdown thus the decline in their earnings.
