Associated Broadcasting Corp. (ABC), operator of TV5, has started to review its profit targets following weaker-than-expected growth in advertising revenues.
The company, a unit of MediaQuest Holdings, said capital expenditure (capex) spending in 2013 would also likely slow down next year since most major projects are expected to be completed this year.
“We may not hit our ad revenue targets this year because there was some softness in the first quarter. The second quarter was stronger, but we still fell short,” TV5 president and CEO Ray C. Espinosa said in an interview over the weekend.
TV5 earlier said it was targeting 2014 as the company’s first year of profitability since the group of businessman Manuel V. Pangilinan took control of the firm. But Espinosa said that even this target was under review due to factors that had not been identified when the goals were first set.
One of the factors was the debt crisis in Europe, which led to a cut in advertising spending by multinational companies operating in the Philippines.
Despite the lower-than-expected revenues, Espinosa said, the company remains focused on improving its programming by hiring creative minds to work behind the camera and big “stars” to go onscreen.
“Star power and content go hand-in-hand. No one will watch a show if either of the two is missing,” Espinosa said. “It’s taking us a lot of time to build a loyal viewer base.”
Another major concern for the network is the expansion of its reach across the nation.
TV5 started 2012 with a coverage level of 80 percent. By next year, Espinosa said the company should cover 90 percent of the country.