ABS-CBN Revenue Falls 17 Percent as First-Half Losses Deepen

Revenue Pressures Mount

ABS-CBN Corp. recorded consolidated revenue of P6.88 billion in the first half of 2026, a 17 percent drop from the same period in 2025, according to the company's financial disclosures. The broadcaster's net loss expanded to P1.83 billion, more than doubling from P852 million a year earlier.

Consolidated operating expenses declined 5 percent to P8.46 billion, a reduction of P482 million year-on-year. Despite the cost containment, the revenue shortfall overwhelmed expense discipline, widening the company's losses as it continues navigating its post-franchise business model.

The content production and distribution segment generated P5.76 billion, down 9 percent. Stripping out political advertising and one-time items from both periods, recurring net loss in the segment improved 1 percent, while recurring EBITDA rose 2 percent, the company reported.

Advertising Cycle and Content Gaps

The year-on-year revenue decline stemmed partly from the absence of election-related advertising that had lifted 2025 figures. The company also pointed to macroeconomic headwinds and softer consumer sentiment affecting the domestic market.

ABS-CBN released fewer films and staged fewer large-scale events in the first six months compared to the prior year, when revenue benefited from BINI's sold-out concert at Philippine Arena and the box-office performance of "My Love Will Make You Disappear." Higher consumer product sales and gains in international syndication and co-production deals provided partial offsets.

The broadcaster expects performance to strengthen in the second half, citing the May release of Star Cinema's "Tayo Sa Wakas" and BINI's world tour, which launched in June following the group's appearance at Coachella in April. The tour is scheduled to continue through year-end, with additional film and live event releases in the pipeline.

Lopez Family Backs Equity Injection

ABS-CBN announced in August plans to raise P6 billion in new equity to shore up its balance sheet and support the shift toward a content-led media and entertainment model. Three branches of the Lopez family, through Crème Investment Corp., Mantes Corp., and Presta Holdings Co. Inc., have committed P2.2 billion in personal funds to subscribe to new shares.

I&C Holdings Corp. pledged an additional P3.5 billion, while Lopez Inc. committed P300 million. The subscriptions remain subject to final agreements and regulatory clearances.

The capital infusion comes as the company continues restructuring operations after losing its broadcast franchise in 2020, when the House Committee on Legislative Franchises rejected its renewal application. The company has since pivoted to digital platforms, cable distribution, and content licensing to replace over-the-air broadcast revenue.

Navigating the Transition

The broadcaster's recurring EBITDA improvement, though modest, signals some stabilization in core operations as management adjusts the cost base to match the smaller revenue footprint. International co-productions and syndication deals represent a growing revenue stream, diversifying income sources beyond the domestic advertising market.

The second-half outlook hinges on the performance of upcoming content releases and the commercial success of BINI's international tour, which extends the group's reach beyond Southeast Asia. The tour's economics, including ticketing, merchandise, and ancillary rights, will test the company's ability to monetize talent assets across multiple markets.

With the Lopez family reinforcing its commitment through the equity raise, ABS-CBN is betting that content remains a defensible asset in a fragmented media landscape. The challenge lies in scaling revenue quickly enough to absorb the fixed costs of production infrastructure while building sustainable distribution channels that do not rely on terrestrial broadcast rights.

The company's trajectory through year-end will clarify whether the content-led pivot can generate sufficient cash flow to support long-term operations, or whether further capital injections will be required as the transition extends into 2027.