TV5 losses double to P4.1B in 2011


MANILA, Philippines—Amid cutthroat competition in the broadcasting industry, the country’s third-largest television network doubled its losses last year as it tried to compete head on with its larger rivals.

According to financial statements filed by ABC Development Corp. — parent company of TV5 — the company lost P4.14 billion at the end of 2011, representing a 91-percent increase from its net loss of P2.16 billion the previous year.

In contrast, industry leaders ABS-CBN and GMA Network reported net incomes of P2.4 billion and P1.71 billion, respectively, for 2011.

The dramatic increase in the losses of the network controlled by  Manuel Pangilinan comes as his group is trying to acquire the country’s No. 2 player, GMA Network Inc., in a bid to better compete with industry giant ABS-CBN Broadcasting Corp.

Talks between the Pangilinan group and GMA Network’s controlling shareholders — the Gozon, Duavit and Jimenez families —are reportedly ongoing, but both sides have so far failed to agree on a price for the country’s second-largest network.

Sources have said that Pangilinan had initially balked at the P65-billion selling price initially quoted by GMA’s owners, although Pangilinan lately signaled that a deal may be in the offing before the end of the year.

During the same period, TV5’s asset base also grew to P8.84 billion from 2010’s level of P5.41 billion as the network invested more in broadcast equipment to upgrade its older apparati. However, its level of receivables — unpaid obligations by its clients — also ballooned in 2011 to P1.14 billion from only P443 million in the previous year.

Total liabilities of the network also grew sharply, hitting P6.45 billion last year, from only P2.52 billion in 2010 as it borrowed more cash to fund its expansion.

TV5’s financial statements filed with the Securities and Exchange Commission reveal that total revenues grew sharply to P2.31 billion last year, representing a 164-percent growth over the P875 million in sales recorded in 2010.

However, the benefit of higher sales figures were negated by the increase in TV5’s production costs, which hit P3.76 billion in 2011. This was 105 percent higher than the total production costs of P1.83 billion in 2010, as the company attracted talents from rival networks — like Sharon Cuneta and Derek Ramsay — with large, multi-year contracts.

TV5 president Ray Espinosa had yet to respond to Inquirer’s request for comment on the network’s losses for 2011 as of press time Saturday.

Last month, PLDT group officials said they expected TV5 to break even by 2014.

Espinosa, meanwhile, said he expected  the network to have a 30-percent market share by 2015, double the present level of 15 percent.

The network is spending an additional P6 billion for a new corporate headquarters and studios in Mandaluyong City which it expects to be completed later this year.

ABC and its TV5 network are owned by the PLDT group’s Mediaquest Holdings, which also holds a minority stake in the Philippine Daily Inquirer.

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  • Manuel Aguirre

    Once again, kudo to Inquirer! Amid the BIG news about the merger and the ‘all cash’ purchase of GMA by Pangilinan, PDI chose to look the other way, and see what great scoop they’ve got! Congrats Mr. Lucas for being a real ‘inquirer.’

  • Manuel Aguirre

    Once again, kudos to Inquirer! Amid the merger news, the ‘all cash’ purchase of GMA by Pangilinan, you managed to looked the other way and see what major scoop you got! Amazing. You really live up to your name, which i think every thinking Filipino should be–an INQUIRER!

  • Marcus Kiel Rodriguez

    buti na lang naireport ng inquirer. good job inquirer. kung di niyo nireport to di ilalabas ng TV5 yan for sure

  • Marcus Kiel

    atat kasi umangat sa broadcasting industry.. yan tuloy.. pano na sweldo ni mega nyan lol

  • litenshadow

    growing pains

  • archangel uriel

    hwag nyo na kalabanin ang abs-cbn …… hirap po yan pabagsakin …… may sekreto po yan ….. may ZENDO po sa itaas ng building nyan ….. ito po ang nagbibigay ng positive energy sa buong building ……. zen practitioner po ang may-ari nyan …. a highly spiritual person ….

    • Diane Teves

      Puro kalokohan to. Syempre magagaling ang nasa ABS-CBN kaya top-rating! Hindi yan sa zen zen! Dyusko!

      • archangel uriel

        bakit di mo subukan mag zen bago ka gumawa ng comment …… hindi lahat nasa abs-cbn magagaling …. marami ding magagaling sa ibang station ….. you need positive energy para sumikat ….. tanungin mo kaya si kim atienza and juday ….. nakita ko sila na hawak-hawak ang crystal quartz/s to attract positive energies dahil inaabsorb nito ang negative energy….. kaya sila sumisikat dahil nakakatulong ito….. ganun din kapag ang isang tao ay mag zen ….. kaya nga nag top rating ang abs-cbn dahil sa positive energy ng station na yan …. ZENDO is like a Blessed Sacrament in our catholic faith ….. we pray in silence …… in catholic it’s contemplative prayer ….

  • Banana Na

    okay lang daw malugi basta may T.V. network si MVP, yun ang dreams niya…hee tutal, may sasalo sa lugi nila, yan ang SMART, the golden egg of PLDT…

    • Myrna Loyola

      mawawalan na nga tlga ng pera ang PLDT, eh ung commercials lang ng TV5 eh puro hawak din ni MYV: PLDT, SMART, Cignal, ano pa ba? Talk N Text! hahahahahaha Lahat ng kita ng mga yan, sa TV5 napupunta para ipambayad sa mga artistang la ocean deap.

      • Banana Na

        hindi mawawalan kundi mababawasan ang profits nila…hee

      • Myrna Loyola

        anyhow, nawalan sila ng big amount of money

      • Banana Na

        para sa PLDT ay medyo konti pa lang yan, pero pag-every-year palaging loss at lumalaki ay masakit yan sa ulo ni MVP…biro mo, babayaran nila ang na pirate na actor or actress ng isang bilyon for only a few years, its not worth it kung di kumikita ang mga show nila, ibig sabihin kung konti lang ang advertizing sa show na yan, dito lang sila kumikita ng isang TV STATION…

  • George Morales

    Ini-spoil kasi si Revillame kaya ayan puro lugi. If Revillame is still with TV5 . . expect losses again.

    • Myrna Loyola

      dapat kasi tignan nila ung losses nla, sobrang laki na, tinatago pa kasi eh, lugi ba nmn.. san nla kukunin ung tag 10 million sa artista academy nla? uutang ult? eh ung pambili ng gma, uutang dn b cla?

    • Diane Teves

      Lugi na talaga sila. Puro kasi pamimirata ng talents ang ginagawa. Di nga naiimprove ang content ng mga palabas nila, wala pang ratings. Kawawa naman.

      • Myrna Loyola

        dapat ung ginastos sa mga pagpirata ng artista, ibinili nlng ng mga equipment ng gumanda-ganda ung quality ng palabas nl,a para kang nanonood ng mga sinaunang palabas sa labo ng reception, hindi rn gaano ganun kagaling ung iba nlang baguhan, parang wala silang workshop na pinapagawa sa mga artista nla..

    • archangel uriel

      haha .. oo nga ..

    • Manuel Aguirre

      Inispoil ni MVP hindi lang si Willie. Sinunod din niya layaw ni Sharon, Aga, Derek at nang lahat ng pinirata nila. Ayan tuloy.

  • Myrna Loyola

    thanks for the info, sa wakas nalaman narin namin.. galing tlga ng inquirer. ang lakas magpirata ng artista, lakas bumili ng kung ano-ano tapos pagmamayabang, wala palang kita.. palugi na tlga.. cge pa pirata p ng artista, tpos may artista show p cla..

  • Pinagiisipan Pa Ba Yan?

    All of you are idiots.

    Sharon, Willie and Derek’s contracts are “production” contracts – TV5 pays the production companies for them to produce their own shows, not the artists directly. And the billions being paid are in installments – in 5 years! Not a billion in 1 sitting. Subtract the sets, the kickbacks of managers – these artists receive the same money they had in their former networks.

    TV5 is “losing money” for it is INVESTING – 6 billion alone for its new headquarters in Mandaluyong. Additional 6 billion for its investment in Cignal and provincial stations. You see, as a new network, you’ll expect them to lose for they are just starting to build up.

    Revenues up 164% – and you think they’re not earning?

    • Myrna Loyola

      idiot ka rin dong.. ang malinaw na malinaw eh lugi sila ilang ulit at wla man lng balik ang pera nila, eh panu nga naman may babalik eh mayabang..

      • Pinagiisipan Pa Ba Yan?

        Do you think it is possible for their money to return within a year?

      • Myrna Loyola

        within a year? its been 2yrs na lugi sila, hahahaha… 4.1B losses oh!!! actually ngaun lng kc yan ntn nalaman, tinatago kc ng luging tv5… hahaha kawawang estasyon.. kaya nga bbilhin ang gma para kasamang lulubog..

    • George Morales

      Mas idiot ka, eh ganoon rin yon “production” contracts pero TV5 facilities ang ginagamit.

    • Henrietto Pex

      you are more idiot. first of all, investing in FIXED assets like the new headquarters are CAPITALIZED, not EXPENSED IMMEDIATELY. it means these are depreciated so that the cost of the fixed assets like the cost of the new headquarters are divided based on the assets’ useful life. so hindi ibabawas ang isang buong 6 billion sa taong 2011. HOWEVER, production costs, like talent fees are EXPENSED. sa case ni sharon cuneta, the entire 200 million (which is the first out of five installments) is deducted sa income statement for the first year.

      mas maganda siguro makita ang cash flow statement ng TV5

    • Diane Teves

      Hahaha. Eh ang revenues naman nila puro receivable pa lang! Hindi pa nila natatanggap! Kita ba yun?

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