The drop in revenue is expected to persist in the coming months, which is why it has continued to deepen the plans to reduce costs and optimize expenses.
In an industry whose revenues have fallen – during the second quarter of 2020, broadcast TV had a drop of more than 40% – Channel 13 increases its losses compared to the same period of the previous year.
Between April and June, the television arm of the Luksic Group reported losses of $ 2,851 million, while this same quarter in 2019 was $ 984 million. The main cause is the decrease of $ 9,065 million, 43.9% less, in income, strongly influenced by the health crisis.
“This drop was partially offset by a demanding savings plan both in costs and in administration expenses, which together offset $ 6,659 million,” said Channel 13.
As to the accumulated results of the first semester of 2020, the company reports losses for $ 3,477 million, which compares with losses of $ 4.867 million for the same period of the previous year. This 11% decrease is the result of administrative expenses, which are in line with the cost reduction plan, when comparing both periods.
In terms of audience and reach, it raises its average home rating from 6.0 to 7.4 points between the months of April and June. Programs such as Master Chef Celebrity, Places that Speak, Teletrece, Generación Dorada, Cultura Tarde and Pablo Escobar, the Patron of Evil, registered high audiences and responded to expectations, explained Luksic’s company.
As of the second half of March, the crisis caused by the Covid-19 pandemic has hit the industry hard, reducing the demand for advertising space and with it revenues. “The impact is expected to persist in the coming months, which is why it has continued to deepen the plans to reduce costs and optimize expenses,” the company said.