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PH Media Gears Up For Elections as ABS-CBN Revival Speculated

Between political advertisements and a new House bill seeking to renew ABS-CBN’s franchise, media companies may see an uptick in growth this election season

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ABS-CBN compound
Employees camp outside of the ABS-CBN Corporation compound in Quezon City in protest of the network’s shutdown, March 5, 2020. Photo by Patrick Roque/Wikimedia Commons

Media companies are expected to see an increase in political advertisements before the midterm elections in May, says Toby Allan Arce, Head of Sales Trading at the securities firm Globalinks Securities and Stocks, Inc.

According to Arce, growth in online platforms and content consumption allow media companies to reach younger audiences, and that “investments in digital assets could drive long-term growth.”

He also tells BusinessWorld, “Political coverage and election-related programming often lead to higher viewership and engagement.” Election-related spending on advertising is also expected to contribute to this rebound.

Arce warns that consumer preference for digital and streaming platforms may be a challenge to media companies. “Companies that adapt to digital ad platforms may thrive, while those relying on traditional TV ads could face challenges,” he says. “The need for high-quality, localized, and engaging content will grow, requiring significant investments.”

In the first nine months of 2016, GMA Network, Inc. reported a 73 percent increase in its net income, with political ads contributing to P1.5 billion of the income for that period. ABS-CBN Corporation also experienced an increase in its net income for the first quarter of 2016 to P761 million, with a 30 percent surge in ad revenues thanks to the elections.

As early as the third quarter of 2021, GMA was already seeing political advertisements trickle in ahead of the 2022 elections, creating a 53 percent bump up in their profits from the year prior. In comparison, ABS-CBN experienced a 35.5 percent dip in ad revenues amid its scramble to renew its franchise.

POSSIBILITY OF a Franchise Renewal

ABS-CBN reportedly saw a 10.4 percent decrease in consolidated revenue from January to September 2024, dropping to P12.12 billion due to lower cable TV and broadband revenues. GMA also saw its gross revenue drop in the same period, falling by 9.5 percent to P12.46 billion.

However, ABS-CBN shares surged on Wednesday, January 8, after Albay Representative Joey Salceda filed a new House bill seeking to give the network a 25-year franchise. Within the day, the company’s shares traded up to P7.46 a share. In comparison, January 7’s high was P5.07, while shares only went as high as P4.38 in December 2024.

Joey Salceda in the House of Representatives
Albay Representative Joey Salceda. Photo from the House of Representatives

China Bank Capital Corp. Managing Director Juan Paolo E. Colet says that at present, trading is “mostly speculative.”

“The next several weeks and months might see opportunistic speculation in the stock as some investors bet that this bill has a serious chance given current political dynamics,” Colet said. “Whether this becomes a sustainable rally depends on positive developments in the legislative process.”

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