ABS at the mercy of creditor banks
ABS-CBN Corporation ( ABS ) has finally submitted its first half 2020 (1H 2020) results. The results showed that it has the financial strength to continue its operations. It has cash, cash equivalents, and short-term investments of 18 Billion Pesos as of end of 1H 2020 while debts due in the next 12 months is only 0.5 Billion Pesos. In the 1H 2020 it was able to generate cash from operations of 1.7 Billion Pesos which has been more than enough to service it debts. The losses of 3.2 Billion for the period 1H 2020 can be attributed to the inefficiency of a bigger organization (the administrative and general expenses/GAEX) with a smaller revenue stream. But this inefficiency is now being addressed. ABS has adopted and continues to implement cost control measures, reducing general and administrative expenses (GAEX) or overhead, rationalizing capital expenditures, and streamlining its manpower requirements. Given the reduced operations, ABS is reviewing its current business models, struc...