ABS-CBN raises P6 billion in new equity

MANILA, Philippines — Media giant ABS-CBN Corp. is receiving up to P6 billion in new equity from new and long-time investors, giving it fresh funds to support efforts to return to profit.

ABS-CBN yesterday announced it is raising P3.5 billion from Philippine private investment firm I&C Holdings Corp., as the investor saw potential in its turnaround initiatives.

“ABS-CBN has built valuable brands, intellectual property, content and deep relationships with Filipino audiences in the Philippines and overseas,” I&C Holdings said.

I&C Holdings said ABS-CBN has shown ability to keep up with changes in the media industry. The investor believes ABS-CBN could build a sustainable business and generate long-term value if it is provided with capital support.

Likewise, ABS-CBN will receive P2.2 billion from Creme Investment Corp., Mantes Corp. and Presta Holdings Co. Inc. The companies represent the three branches of the Lopez clan, and the infusion will come primarily from personal resources.

Lopez Inc. will also plug P300 million into ABS-CBN to bring the fresh equity to P6 billion.

ABS-CBN chairman Mark Lopez said the investment would be used to strengthen the company’s balance sheet, as it tries to climb out of its net loss since losing its legislative franchise.

Moreover, Lopez said the investment indicates a vote of confidence in ABS-CBN in spite of the difficulties it has faced financially since leaving free TV in 2020.

“This substantial investment is a vote of confidence in ABS-CBN. It tells us that there are people who continue to believe in the company and the mission of being in the service of the Filipino,” Lopez said.

ABS-CBN aims to return to profitability this year, but so far it is nowhere close to achieving that goal. As of March, ABS-CBN’s net loss has worsened by 63 percent to P813 million, as revenue declined by 21 percent to P3.33 billion.

The company suffered from the loss of election placements and slower economic growth, as revenues failed to offset expenditures.

Still, ABS-CBN is confident it could recover from the slow start, as its crown jewel BINI will be going on a world tour in the later half of the year.

(See related story on B-3)

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