Lopez Holdings

Articles

Remarks of Carlo L. Katigbak, president and CEO, at the ABS-CBN Corporation Annual Stockholders’ Meeting on September 24, 2020
Held via https://agm.conveneagm.com/abscbn_asm2020

To our dear stockholders,

Magandang umaga mga Kapamilya.

ABS-CBN is not a broadcast company. Our mission has always been to serve the public primarily by bringing them Entertainment and News that matters. While broadcast television has been the medium that has allowed us to serve the most number of Filipinos, and while both the business and the audiences we serve have felt the pain of its shutdown, TV is not our only platform.

Now, more than ever, we can focus on our core capabilities—creating programs that entertain, inspire, and give joy to Filipino families. And delivering news that informs, educates, and helps our kababayan, especially in their time of need.

We continue to bring our shows to people via our many cable TV and satellite partners, through the Internet over our sites and partner platforms like Facebook and YouTube, and all over the world in partnership with global media companies.

Nothing can take away our spirit of service. The passion for serving the Filipino continues to burn brightly in our hearts, and our commitment to the public is to continue to find ways to be of service to you.

We want to thank our shareholders for standing by us as we go through this challenging time in our history.

We have undertaken many measures to ensure the continuity of our operations.

In 2019, revenue growth was a healthy 6.7%, increasing sales from Php40.1 billion to Php42.8 billion. This revenue growth allowed us to achieve a net income growth of 55%, from Php1.9 billion in 2018 to Php2.9 billion in 2019. However, due to the denial of the franchise of ABS-CBN Corp., the inaction on the franchise renewal of ABS-CBN Convergence, and the closures of Kidzania and the ABS Experience Store following the impact of COVID-19, we were constrained to take a one-time asset impairment of Php5.6 billion. This reduced our net income from Php2.95 billion to an accounting net loss of Php2.65 billion. These impairment charges have no impact on cash flow.

We will continue to face difficult times in 2020.

In response to our current situation, we have had to retrench nearly 5,000 employees. We have reduced the number of programs we are producing to save on costs. And many of the remaining employees have volunteered to take pay cuts to help the company manage its cash flow. Please join me in thanking all our employees for the sacrifices they made for the company they love. Thank you to those who are leaving ABS-CBN, for the years you have given to the company, and for the service you have given to our audiences. Thank you to those who are staying behind, for believing in our future and for enduring this sacrifice in order to continue serving the public.

You are all indeed, family. You are all truly our Kapamilya.

In many, if not all, of our teleseryes, the protagonist goes through unendurable suffering yet always emerges a better, stronger, and more successful person. While our teleseryes are fiction, they mirror the realities of life.

It is with confidence that we commit to you, our dear shareholders that we will come out of this crisis a better, stronger, and more successful company.

It will be a difficult journey until that time, but our history has shown that ABS-CBN’s burning passion for service to the Filipino cannot be extinguished. We hope you share this passion with us and count on your continued presence on the road to rebuilding our beloved company.

Maraming salamat mga Kapamilya.

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Lopez Holdings Corporation 
16/F North Tower, Rockwell Business Center Sheridan, Sheridan St. corner United St., 1550 Bgy. Highway Hills, Mandaluyong City, Philippines

  • Trunkline: (632) 8878 0000
  • Fax: (632) 8878 0000 ext 2009