ABS-CBN Corp. managed to trim its second-quarter attributable net loss to P1.4 billion from a loss of P3.2 billion in the same period a year earlier, as the media company continues to cut expenses.
ABS-CBN’s total revenues for the second quarter declined 10.6% to P4.2 billion from P4.7 billion previously, the company’s quarterly report shows.
But its gross profit for the quarter increased 51.9% to P425.8 million from P280.2 million in the same period in 2020 after it cut its production costs, cost of services, and cost of sales.
The company trimmed its second-quarter general and administrative expenses to P1.9 billion, compared with the P3.2-billion expenses previously.
For the first half of the year, ABS-CBN’s revenues dropped 38.3% to P8.2 billion from P13.3 billion in the same period last year.
ABS-CBN’s first-half gross profit decreased 85% to P429.7 million from P2.9 billion a year ago.
Its general and administrative expenses for the period narrowed to P3.8 billion from P6.3 billion in the previous year.
ABS-CBN posted a first-half attributable net loss of P3.4 billion, compared with a loss of P3.9 billion in the same period in 2020.
“Following the events of the franchise denial and the impact of [coronavirus pandemic], the company enforced stringent cost-cutting measures to further manage [its] financial performance,” ABS-CBN noted.
Last year, after being denied a broadcast franchise, ABS-CBN entered into an agreement with its existing lenders “to provide for the creation of a mortgage and security interest over certain assets of the company, the opening and maintenance of debt service reserve account, pre-payment of the P4 billion of its loans, and an amendment of existing loan agreements.”
It said the lenders agreed that “upon satisfaction of the necessary conditions under the Omnibus Security and Intercreditor Agreement and during the effectivity period of the standstill…, it shall not declare an event of default to the extent that it relates to the Franchise Expiration Default.”
“On May 31, 2021, all the conditions specified in the Omnibus Security and Intercreditor Agreement were satisfied and accordingly, the Standstill Effective Date Notice was executed by all parties,” it added. — Arjay L. Balinbin