Lopez Holdings posts 93 percent drop in H1 net income due to virus, ABS-CBN losses

Lopez Holdings Corp. said Wednesday its net income declined by 93 percent in the first 6 months of 2020 due to lower revenues from all business units, the COVID-19 pandemic and net loss of ABS-CBN's media business.

Net income attributable to equity holders stood at P275 million, 93 percent lower compared to P4.181 billion in the first half of 2019, Lopez Holdings said in a statement.

"Lower revenues from all business units and higher costs that include one-off expenses related to the group’s COVID-19 response and share in the net loss reported by ABS-CBN’s media and entertainment businesses accounted for the results," the Lopez-led group said.

ABS-CBN Corp earlier reported a net loss of P3.9 billion in the first half of 2020 due to the COVID-19 pandemic and the House of Representative's denial to grant the network another 25-year franchise.

Its unaudited revenues of P13.317 billion for the period was 36 percent lower compared to P20.802 billion in the first half of 2019, the company said.

Ad sales accounted for 39 percent of ABS-CBN revenues, compared to 54 percent in the same comparable period, it said.

ABS-CBN shut its free TV and radio channels nationwide last May 5 in compliance with an order from the National Telecommunications Commission, after its franchise expired on May 4. It also ordered the company to stop its digital terrestrial TV network. 

Source: Peso Economics