Business

Lopezes get crushed by P3.9B loss in H1, blames loss of ABS-CBN franchise

The Lopezes have finally revealed the initial damage caused by the expiration of ABS-CBN’s franchise.

ABS-CBN reported a P3.93 billion loss in the first six months of 2020, a massive turnaround from a P1.468 billion profit in the same period in 2019.

Total revenues dropped to P13.317 billion in the first half, down by 36 percent fro P20.802 billion a year ago.

ABS-CBN said advertising revenues declined sharply in the second quarter after the National Telecommunications Commission ordered the company to cease its free television and radio transmission on May 5, a day after its franchise expired.

Less than two months later, NTC ordered ABS-CBN to cut off its digital transmission on channel 43.

“These events in addition to the COVID-19 pandemic that the country is facing, drove down advertising and consumer revenues,” said ABS-CBN.

Ad revenues accounted for 39 percent of ABS-CBN’s total revenues in the first half this year, down from 54 percent a year ago.

Ad revenues shrank 54 percent to P5.202 billion in the first half this year from P11.286 billion in 2019.

ABS-CBN also saw declining revenues from film (down 75 percent to P132 million), sale of merchandise (down 68 percent to P421 million), sponsorship (down 51 percent to P90 million), royalties (down 76 percent to P32 million), and ticket sales (down 66 percent to P7.821 million).

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