TV5 first-half losses at P2.8B

Ad minutes up but revenues still lag


MANILA, Philippines—Losses of television network TV5 continued to accelerate as of the first half of 2012 as the country’s third-biggest broadcast firm ramped up spending to be more competitive with industry leaders.

According to official documents filed by its parent, ABC Development Corp., the company lost P1.37 billion at the end of the first quarter and an additional P1.46 billion at the end of the second quarter. All told, TV5’s losses for the first half of 2012 amounted to P2.83 billion, raising the possibility that the network would exceed the P4.1-billion net loss it reported for 2011.

The sharp increase in losses of the network controlled by businessman Manuel Pangilinan comes in the wake of TV5’s failed attempt to acquire the country’s No. 2 player, GMA Network Inc., in a bid to battle industry giant ABS-CBN Broadcasting Corp.

Talks between the Pangilinan group and GMA Network’s controlling shareholders—the Gozon, Duavit and Jimenez families—for the reported P52-billion takeover were terminated recently after both sides failed to agree on terms that they described as non-financial in nature.

According to the documents, TV5 reported total revenues of P784.6 million during the first half of 2012. This was dwarfed by the network’s production costs for the period of P2.37 billion—already representing two-thirds of the full 2011 level—which, together with P19 million in non-operating income, resulted in a gross operating loss of P1.56 billion for the first semester.

No comparative figures were available for the same period last year, but the network’s revenues for the whole of 2011 stood at P2.31 billion while production costs amounted to P3.76 billion.

A broadcast industry source told the Inquirer separately that TV5 has so far experienced a 53-percent increase in airtime minutes for the first nine months of 2012, but noted that the growth was not matched by a corresponding increase in revenues.

“It appears like [they’ve implemented] a ‘buy one, take five free spots’ scheme,” the source said.

The same source noted that TV5’s flagship program, the Wiltime Bigtime game show that airs during the evening primetime slot of 6 p.m. to 10:30 p.m. registered a 1-percent decline in ad airtime minutes for the first nine months of 2012, making TV5 the only station among the so-called “Big Three” to suffer a decline in this time slot during the period.

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  • dukaponte

    Mababaw kasi ang mga shows sa tv5. Walang laman. Sayang ang malalaking gastos, hindi nakatulong sa bayan. Bagkus ay nagpromote ng mendicancy.

  • ADD

    Is this the reason why the rates of Smart, Meralco, and NLEX are going up?

    IF MVP chooses to promote quality and educational shows, he wouldn’t loss that much or better yet earn from it.

    He gambled on the wrong people (Willie, Sharon, Aga, Derek). He should have gambled on making a new Batibot, new MATHinik, english shows, Pinoy version of discovery channel, cooking contest, OFW lives abroad or Pinoy’s CNN.

    He could have produced a professional league for volleyball, table tennis badminton (men and women), and a new blow-by-blow.

    Instead MVP chose “KILIG” TV shows.

    Why MVP supports the men’s basketball and football and not the women’s?

    He could have used that billions to make a change to Pinoy’s TV preferences, but he chose that same old same old, and now it blows in front of his face.

    Handsome (pretty) faces and bulky (sexy) bodies are not the only ingredients for a successful TV business.

  • batang-gas

    Mvp paid a fortune to pirate talents from rival networks but these talents failed to deliver.

  • Jao Romero

    ABC 5 problem isn’t programming. they have quality way more than the other 2 big networks. ABC 5 problem is broadcast penetration. when people who have cable still have difficulty getting their channel, that is a big fkng problem. (yes, i have cable. the only time channel 5 is clear in my TV is when Willie is on. and no, my cable is not SkyCable)

    you can’t get viewership if your channel cannot be be seen by audiences. if cable subscribers can’t even get the channel, how much more for UHF TV viewers? even in Metro Manila alone, channel 5 is not very clear.

    obviously, what is needed is investment in infrastructure. i understand that’s why MVP tried to buy GMA, to acquire said infrastructure without having to build a new one. now that its failed, what’s next?

    • denis a lozada

      Willie Revillame is quality? Since when? 

      • Jao Romero

        i never knew Willie to be the only show in ABC 5. ignoring the fact i did not even single out Willie to be the quality program i was talking about.

        you fail on so many levels, but foremost on reading comprehension.

    • kalikasanipagtanggol

       I don’t believe that MVP tried to buy GMA to acquire its infrastructure without having to build a new one! The purpose is clear, to manipulate and be the biggest network in the country. Why would a caliber businessman like MVP buy a company with very old infrastructure?

      • Jao Romero

        it’s generally cheaper to buy present infrastructure and then upgrade than to build a new one. it’s the same reason why mergers happen all the time. the big swallows the small, absorbs the good and casts off the bad. you’re too stupid to understand the reason, so ofc you’re out of depth with this one.

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