CNN Philippines, operated by Nine Media Corp. (NMC), is set to close down on January 31, following substantial financial losses. The announcement was made by NMC on Monday, signaling an end to its news and production ventures on all platforms branded as CNN Philippines. This decision comes shortly after D. Edgard Cabangon, NMC’s chairman, noted that the termination of their franchise agreement with CNN International had been postponed from the previous year.
According to NMC, the shutdown is a consequence of “significant financial losses sustained over the past years,” despite attempts to adapt and innovate in a challenging media environment. The financial troubles of NMC were previously highlighted by independent auditor Reyes Tacandong & Co., citing concerns about the company’s sustainability.
The financial records reveal that NMC experienced net losses of P231.4 million and P239.7 million in 2021 and 2022, respectively. The company also reported capital deficiencies amounting to P226.2 million in 2021 and P465.2 million in 2022.
In light of the closure, NMC has committed to providing severance packages to its employees, acknowledging the impact of this decision on its staff and talent. The company expressed gratitude towards its team for their dedication and contribution to establishing CNN Philippines as a credible news source in the nation.
The move to discontinue CNN Philippines follows a mutual agreement between NMC and CNN Worldwide to end their licensing deal, with the licensing fees paid to Turner Broadcasting System Asia Pacific Inc. escalating to P139.3 million in 2022, up from P108.09 million in the previous year. The licensing agreement, initiated in October 2014 and extended in 2019 for another five years, was due to expire on December 31, 2024.
Despite a slight increase in revenue in 2022, NMC faced rising costs for services and additional expenses, including airtime and satellite costs, as well as general and administrative expenses.
Launched in 2015, CNN Philippines emerged as a major English language free-to-air news channel and website, a joint venture between Turner Broadcasting and NMC.