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ABS-CBN debt payments rest on ad revenues: analyst

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ABS-CBN News

MANILA - ABS-CBN Corp&#x27;s ability to pay its debt rests on the resumption of broadcast operations and advertising revenue, an analyst said Monday.The country&#x27;s largest media and entertainment company said on May 8 that it was committed to debt payments despite being told to &quot;cease and desist&quot; from broadcasting by the National Telecommunications Commission due to an expired franchise.&quot;The Company is committed and will continue to honor all existing obligations for goods delivered and services rendered by its third party suppliers. Currently, the Company remains in a good financial position and we expect to pay all our bank debts in accordance with the existing payment schedule,&quot; ABS-CBN said in the disclosure to the stock exchange. Excluding SkyCable, ABS-CBN has a total debt of P20.2 billion to UnionBank and BPI, based on company data. BPI&#x27;s exposure worth P9.1 billion is maturing in 2025 while UnionBank&#x27;s loan, worth P11.1 billion is maturing in 2026.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/05/05/20/ntc-orders-abs-cbn-to-stop-broadcasting">NTC orders ABS-CBN to stop broadcasting</a></li>	<li><a href="https://news.abs-cbn.com/news/05/05/20/abs-cbn-to-go-off-air-in-compliance-with-ntc-order">ABS-CBN to go off air in compliance with NTC order</a></li></ul>&quot;If ABS doesn’t get the advertising revenue that it has then those numbers are in danger or they’ll have a hard time meeting those numbers,&quot; said COL Financial vice president and head of Research April Lee Tan.ABS-CBN is losing P30 to P35 million every day that it is off the air, according to its petition to the Supreme Court that sought to overturn the NTC&#x27;s closure order.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/05/07/20/abs-cbn-asks-supreme-court-for-tro-vs-ntc-closure-order">ABS-CBN goes to Supreme Court for broadcast resumption</a></li></ul>The ABS-CBN franchise bill has languished in Congress. Senate President Vicento Sotto said senators would approve the franchise if it reaches their chamber.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/05/05/20/we-will-approve-it-sotto-says-abs-cbn-franchise-renewal-should-be-brought-to-senate">&#x27;We will approve it!&#x27;: Sotto says ABS-CBN franchise renewal should be brought to Senate</a></li></ul>News.abs-cbn.com is the official news website of ABS-CBN Corp.

ABS-CBN Corp's ability to pay its debt rests on the resumption of broadcast operations and advertising revenue, an analyst said Monday.

ABS-CBN Corp's ability to pay its debt rests on the resumption of broadcast operations and advertising revenue, an analyst said Monday.