TV5 Losses amount to 4.1 Billion Pesos in 2011

June 23, 2012



TV5 is losing a lot of money. In 2011, its losses amounted to 4.1 billion pesos. In 2010, it lost 2.16 billion pesos. In contrast, its rival TV stations ABS-CBN and GMA Network reported net incomes for 2011. ABS-CBN made a net profit of 2.4 billion pesos and GMA Network’s net profits are at 1.71 billion pesos. Total liabilities of TV5 is at 6.45 billion pesos in 2011 from only 2.52 billion pesos in 2010, as it borrowed more cash to fund its expansion. TV5’s revenues grew sharply to 2.31 billion pesos in 2011, just 875 million pesos in 2010 though.

The benefit of higher revenues were offset by TV5’s increased production costs, hitting 3.76 billion pesos in 2011. This reportedly is largely due to the billion pesos contracts of new TV5 talents like Sharon Cuneta and Derek Ramsay. With all these losing financial standing of TV5, based on financial statements filed by its parent company ABC Development Corp. with the Securities and Exchange Commission, its executives are upbeat that they will do better in the years to come. Currently based in faraway Novaliches, TV5 is spending an additional 6 billion pesos for a new corporate headquarters and studios in Mandaluyong City expected to be completed later this year.