ABS-CBN CORP. said the National Telecommunications Commission’s (NTC) order recalling all its frequencies has no additional impact on the company.
“The recall of the frequencies has no additional impact on ABS-CBN Corp.,” the listed media company said in a disclosure to the stock exchange on Monday.
“The full impact of the non-renewal of the franchise (which would result in the recall of the frequencies) was discussed in a previous disclosure, dated July 22, 2020,” it added.
The network announced last month the shutdown of 12 of its news programs in the provinces.
The media company, known to be critical of the Duterte administration, has said the House lawmakers’ decision on its application for a franchise renewal on July 10 “significantly affects” its media, networks, and studio entertainment operations. It noted 68% or P15.9 billion of the segment’s revenue for the period ended Sept. 30 last year was free TV advertising.
It said it would continue to operate in other businesses that do not require a broadcast franchise, namely: international licensing and distribution, digital and cable businesses, and syndication of content through streaming services.
The company has carried out cost-cutting measures, which include rationalizing capital expenditures and streamlining manpower requirements.
It also expressed confidence that any payments or financial obligations that may arise under its customary or usual business agreements are “manageable and will not have a material adverse impact” on the company.
ABS-CBN said it would honor all its existing obligations for goods delivered and services rendered by third-party suppliers.
The Bankers Association of the Philippines said recently it was confident that banks could manage their credit portfolio in relation to the non-renewal of the ABS-CBN broadcast franchise.
The media company introduced last week its new educational platform for young learners, its newest offering after it launched in July the Online Kapamilya Live, where it live streams its programs.
President Rodrigo R. Duterte had accused ABS-CBN of swindling after its refusal to run political ads he had paid for during the 2016 presidential campaign. He had also criticized the broadcaster for airing news stories about his alleged secret bank accounts. — Arjay L. Balinbin