TV5 losses to continue in 2013 - exec
MANILA, Philippines - Television network TV5 of the Pangilinan group will still book losses in 2013, according to a top official of the company.
Responding to questions regarding earnings, TV5 President and CEO Rey Espinosa said the network will still record losses this year, but necessary measures to address the issue are being taken.
"We will still have some losses this year but we're reviewing our programming grid and operating expenses and we're putting necessary plans into place to mend these setbacks," Espinosa said on the sidelines of the PLDT financial briefing on Tuesday, March 5.
Espinosa pointed to the ratings war among the major networks as reason for TV5's losses. The other networks are ABS-CBN Corp., the Philippines' biggest media company owned by the Lopez group, and second-ranked GMA Network Inc. of the Gozon, Duavit and Jimenez families.
Espinosa said TV5 is a young player in the industry, and needs time to catch up.
"The reason for the losses are, obviously, driven by the ratings. Ratings drive revenues and profitability. It might take time for us to catch up against the two other networks. These losses are part of the growth process of the network. We're trying to get there as quickly as we can," he said.
TV5 Chairman Manuel V. Pangilinan was optimistic however. He said 2013 would be a better year for the network.
"I think it should do better this year - better programming, better talents, better revenues. We are looking at a more competitive, more energetic, more innovative TV5 this coming year," Pangilinan said.
He added TV5 plans to spend P6 billion for capital expenditures in 2013. The amount will go to new programs and TV5's state-of-the-art Media Center in Mandaluyong City. The newsroom of the Media Center is expected to be finished by the first quarter.
TV5 had P2.8 billion losses in the first half of 2012, following P4 billion losses for the full year 2011.
The losses came as talks between Pangilinan and the owners of GMA over a planned takeover fell through. Pangilinan wanted to buy GMA for over P50 billion, but the parties failed to agree on the terms of the deal. - Rappler.com