The media giant is optimistic about its financial prospects this year as it continues to expand its reach through various partnerships.
ABS-CBN Corporation, one of the country’s largest and most-influential media conglomerates, held its annual stockholders’ meeting on Thursday, June 20.
Its President and Chief Executive Officer (CEO) Carlo Katigbak happily reported the big strides that the firm achieved over the past year.
HIGH-RATING SHOWS, TOP-GROSSING MOVIES, ‘BINI PHENOMENON’
With respect to ABS-CBN’s program offerings, some of it shows have been able to cement their lead in their respective time slots, as the Kapamilya network continues to expand its reach through various partnerships with other companies, including erstwhile free-to-air rivals TV5 and GMA.
On primetime, Coco Martin’s teleserye ‘FPJ’s Batang Quiapo’ continues to lead the primetime block of ABS-CBN — which is simultaneously seen on their flagship cable channel Kapamilya Channel, Zoe TV’s A2Z channel, and TV5, among other platforms.
‘Batang Quiapo’ recorded an average 46.2% audience share from January 1 to June 12, 2024, as per Kantar Total Audience Measurement.
Apart from that, ‘Linlang’ starring Kim Chiu and Paulo Avelino also boosted the Kapamilya primetime slate.
The series’ 16-episode mini-series cut on streaming platform Prime Video from October to November 2023, as well as its high-rated full-length version on terrstrial television, were both successful.
Variety show ‘It’s Showtime’ has also consistently been the country’s leading noontime program from Monday to Saturday since it began airing on the main GMA channel last April 6, registering an average 58.9% audience share from that day until June 12, 2024.
Carlo Katigbak lauded the successes of these shows, and declared: “Today our program and movies have regained their prominence with their audience.”
Star Cinema film ‘Rewind,’ starring Dingdong Dantes and Marian Rivera, was also a special mention as it became the highest-grossing film of all-time after hitting gross sales of Php 900 million in the box office.
“The Nation’s Girl Group” BINI was also regarded by the Katigbak as “the biggest pop phenomenon” of the year, thanks to the group’s record-breaking streaming records on Spotify and its successful events, such as the upcoming sold-out three-day ‘BINIverse’ concert.
RADIO AND NEWS
After the network’s return to AM radio in June 2023 via DWPM Radyo 630, which was established by their joint venture with Prime Media Holdings, Inc., Katigbak says that they also remain open to returning to the FM airwaves, as long as a good partner comes along.
The corporation will also continue to make investments in its ABS-CBN News division, which will continue to deliver “reliable, credible, and timely information” on TV, radio, and digital platforms.
‘TV Patrol,’ now seen in a wider platform through Kapamilya Channel, A2Z, and Advanced Media Broadcasting System (AMBS) ALLTV channel, will also continue to be the country’s premier and credible Filipino-language newscast.
Katigbak also assured that they will still continue to improve its 24/7 news channel ANC, notably in its news and interview programs, business shows, and lifestyle content.
When asked about the entry of new players in the news broadcasting space, including the upcoming Bilyonaryo News Channel on free TV, the ABS-CBN president said that it would be in the best interest of the public, “especially in the face of organized disinformation and fake news.”
He also added that the company also sees this “as a call to progressively improve our own service.”
NEW PARTNERSHIPS
In the past year alone, ABS-CBN has actively sought new partners in its quest to expand its reach as it navigates through its post-franchise era.
The most groundbreaking of which was its partnership with former archrival GMA Network, when they collaborated for the primetime series ‘Unbreak My Heart,’ which was immediately followed by the GTV simulcast of ‘It’s Showtime’ in July 2023.
At the moment, the Kapamilya-Kapuso collab remains strong as ‘Showtime’ now broadcasts over the main GMA channel 7.
The two firms will also team up in movies via the ‘Hello, Love, Goodbye’ sequel ‘Hello, Love, Again,’ starring Kathryn Bernardo and Alden Richards. The film will be a co-production between ABS-CBN’s Star Cinema and GMA Pictures and hit theaters in November 2024.
Aside from that, ABS-CBN also recently inked a deal with Advanced Media Broadcasting System (AMBS) last April, which saw the broadcast of Jeepney TV blocks, ‘Magandang Buhay,’ ‘TV Patrol,’ and most recently, ‘It’s Showtime’ on ALLTV channel 2.
These are all on top of landmark partnerships ABS had previously inked with TV5, A2Z, and streaming platforms Netflix, Prime Video, and Viu.
SKY CABLE AND ‘NON-STORYTELLING ASSETS’
While the other sectors of the company are seeing optimistic prospects, its cable TV and broadband business remains a sore point in the company’s financial ledgers.
Sky’s net losses, excluding non-recurring items, increased from Php 391 million in 2022 to Php 653 million in 2023.
Katigbak explained that the weak performance of the cable TV segment is attributed to the declining subscribers (also known as cord-cutting), while the broadband business struggles due to lack of capital to expand its infrastructure.
Sky also has an outstanding debt of Php 4.5 billion, with Php 2.05 billion of which is due to be paid in one year.
Despite of those challenges, ABS-CBN will release plans to improve Sky’s services and offerings in due course.
Sky Cable was supposed to be offloaded by ABS-CBN after it previously reached a deal with PLDT in March 2023 to acquire the firm’s broadband business, while shutting down the cable TV operations due to its conflict with PLDT’s own Cignal TV.
Although, a few weeks before the transaction was to be closed, both parties mutually withdrawn due to undisclosed reasons.
Aside from Sky, ABS-CBN also continues to shed off a lot of its businesses that are not related to its core “storytelling” business, which is primarily in content production.
Since the events of 2020, ABS-CBN has closed down or sold off its interests and stake in businesses like themed parks, home shopping, and remittance services, among others.
FINANCIAL NUMBERS AT A GLANCE
Excluding Sky, ABS-CBN said that it has trimmed its losses to Php 994 million during the first quarter of 2024, versus the Php 1.2 billion that it set during the same period in 2023.
Its operating income, again with the exception of Sky, was at negative Php 780 million, versus negative Php 1 billion last year.
Year on year, ABS-CBN’s net loss was at Php 12.8 billion in 2023, versus the Php 2.6 billion net loss in 2022.
Content revenue, meanwhile, increased from Php 10.7 billion in 2022 to Php 11.3 billion in 2023.
Although, consolidated revenue was down from Php 4.26 billion in 2022 to Php 4.08 billion in 2023.
OPTIMISTIC YEAR-END PROSPECTS
As ABS-CBN sees stronger performance in its content offerings, President and CEO Carlo Katigbak shares that the company is optimistic that 2024 will be “a better year” for them.
“Our financial performance is on an upward trajectory. We have laid the foundations for a company that is now asset-light and content-focused,” Katigbak said.
With these initiative, he believes the corporation will be “cash flow positive by the end of the year.”