ABS-CBN Corp. booked a net loss of P813 million in the first quarter, wider than the previous year’s P499 million, on weaker advertising demand and the absence of major content and event-driven revenues.
In a first-quarter report, the media network said consolidated revenues slumped 21 percent to P3.33 billion, reflecting softness across its core businesses, particularly content production and distribution as well as in cable TV and broadband operations.
Revenue from content production and distribution shrank 13 percent to P2.76 billion amid lower ad spend, reduced industry activity and the absence of the election-related ad placements that bolstered last year’s first-quarter results.
“Operating expenses decreased 5 percent to P160 million and are expected to remain under control,” the company said. “Cuts to general and administrative expenses and employee costs accounted for P136 million of the reduction.”
“In addition, global developments this year have had a negative impact on consumer demand and the domestic economy.”
Operating expenses fell by 12.5 percent to P4.06 billion from P4.6 billion on lower general and administrative costs and reduced employee-related expenses as cost rationalization efforts continued.
Within the content production and distribution segment, operating expenses were trimmed 5 percent to P160 million.
Despite the cost reductions, the company said the drop in revenues outpaced savings, resulting in a wider net loss for the period.
Looking ahead, ABS-CBN said it expected revenue performance to improve, citing a stronger content pipeline.
ABS-CBN shares dropped P0.03, or 1.12 percent, to close at P2.64 each on Monday.
