ABS-CBN expects to be profitable by 2026

ABS-CBN Corp. in the Philippines aims to become profitable in the next 18 months. This is due to the cash from selling its Quezon City hub and an expected recovery in advertising revenue. The company's debt level was worsened by the shutdown of its franchise.

Carlo Katigbak, the president and CEO, mentioned in a press briefing that they are well-positioned for a turnaround next year. By the end of 2024, ABS-CBN reduced its debt to P16 billion from P21 billion in 2020 when its free TV franchise was not renewed.

They plan to further decrease the debt to P12.8 billion this year, with the pending sale of their Quezon City property to Ayala Land Inc. This sale is expected to bring the debt levels down to around P13 billion this year. Operations will be consolidated in the Eugenio Lopez Jr. Communications Center by July next year.

With lower debt levels, the company anticipates reduced financing costs, leading to improved cash flow and profitability. They also expect increased revenue from advertising, especially with the upcoming elections.

ABS-CBN is focusing on strengthening revenue streams from international licensing, film, and music businesses. Recent collaborations with GMA Network have been successful, generating over P2 billion in total revenue. The all-female group BINI has also been contributing to the company's revenue through sold-out concerts.

According to the source: Inquirer.net.