ABS-CBN: Shutdown to put added financial burden on company

Media network ABS-CBN on Friday said the shuttering of its operations causes additional financial burden on the company. 

In a disclosure statement to stockholders dated May 15, ABS-CBN said the National Telecommunications Commission’s cease and desist order will significantly impact the company’s media, networks, and studio entertainment (MNSE) operations. 

“For the period ended September 30, 2019, the revenues of this segment amounted to Php23.3B, of which, Php15.9B or approximately 68% of MSNE revenues, was free-to-air advertising. On a consolidated basis, free-to-air advertising was approximately 50% of the Company’s consolidated revenue for the period ended September 30, 2019,” it said in the disclosure.

“As of September 30, 2019, ABS-CBN’s long-term debts amounted to Php21.336B,” it further said. 

ABS-CBN meanwhile continues its MNSE, cable, satellite, broadband, digital and interactive media operations. 

It also announced it will pay bank debts according to its existing payment schedule. 

ABS-CBN also said its petition at the Supreme Court against the NTC order is justified and the order violated the network’s right to equal protection of the law and to due process. 

The network maintains that it committed no violation of the law.  

The House of Representatives on May 13 passed House Bill 6732 to grant ABS-CBN a temporary license to operate until October 31, 2020, while they deliberate on pending bills for the network’s 25-year franchise.