Broadcast company ABS-CBN Corp. is reviewing its mobile business strategy as its mobile network sharing agreement with Globe Telecom is set to expire in June 2018.
ABS-CBN chief financial officer Aldrin Cerrado said the company expected to trim down the losses of ABS-CBN Mobile to P400 million this year, from last year’s P600 million.
Cerrado said ABS-CBN Mobile was unlikely to break even next year, and the company was currently reviewing its mobile business strategy.
“The whole business model of mobile is being reviewed because our contract with Globe is up for renewal by June or July next year,” Cerrado said.
He said the review of the mobile business strategy was expected to be completed by January or February next year.
“The direction is to have a mobile strategy in order to maximize the revenue potential of our content in many platform as possible including the mobile platform,” Cerrado said.
“Globe is awaiting for us to decide and we are awaiting the recommendation of the mobile team as to what kind of business would be evolved,” he said.
Under the agreement signed in May 2013, Globe will provide the capacity and coverage on existing cellular mobile telephony network to ABS-CBN Convergence Inc. on a nationwide basis.
The parties may also share assets such as servers, towers and switches.
ABS-CBN earlier reported a net profit of P2.3 billion in the first nine months, down by 20 percent from last year’s P2.85 billion.
Advertising revenues reached P15.3 billion in January to September, or 3 percent lower than P15.8 billion, net of election-related spending, registered in the same period last year.
The decline in recurring ad sales,, was tempered by an 11-percent increase in consumer sales, which reached P14.2 billion over the same period.
ABS-CBN chief financial officer Aldrin Cerrado said the company expected to trim down the losses of ABS-CBN Mobile to P400 million this year, from last year’s P600 million.
Cerrado said ABS-CBN Mobile was unlikely to break even next year, and the company was currently reviewing its mobile business strategy.
“The whole business model of mobile is being reviewed because our contract with Globe is up for renewal by June or July next year,” Cerrado said.
He said the review of the mobile business strategy was expected to be completed by January or February next year.
“The direction is to have a mobile strategy in order to maximize the revenue potential of our content in many platform as possible including the mobile platform,” Cerrado said.
“Globe is awaiting for us to decide and we are awaiting the recommendation of the mobile team as to what kind of business would be evolved,” he said.
Under the agreement signed in May 2013, Globe will provide the capacity and coverage on existing cellular mobile telephony network to ABS-CBN Convergence Inc. on a nationwide basis.
The parties may also share assets such as servers, towers and switches.
ABS-CBN earlier reported a net profit of P2.3 billion in the first nine months, down by 20 percent from last year’s P2.85 billion.
Advertising revenues reached P15.3 billion in January to September, or 3 percent lower than P15.8 billion, net of election-related spending, registered in the same period last year.
The decline in recurring ad sales,, was tempered by an 11-percent increase in consumer sales, which reached P14.2 billion over the same period.
