COA Audit Reports of PTV, IBC released

The Commission on Audit (seal pictured) is responsible for auditing government agencies and government-owned and-controlled corporations. Last Friday, the two government stations has released its audit report.

The Commission on Audit (seal pictured) is responsible for auditing government agencies and government-owned and-controlled corporations. Last Friday, the constitutional commission released the audit reports of two government stations.

THE COMMISSION ON AUDIT (COA) recently disclosed the audit reports for calendar year 2014 of the two government-owned stations, People’s Television (PTV) and Intercontinental Broadcasting Corporation (IBC) to the public Friday, July 31.

PTV: The equity has been doubled!

According to the audited financial statements, Telebisyon ng Bayan almost doubled its net worth with PHP 689.8 million from last year’s PHP 373.4 million. In the statement of comprehensive income, the sales revenue was slightly dipped to 133.2 million from PHP 143.6 million last year but made a net income with PHP 316.4 million (inclusive of subsidy) or 28.4% return on investment (ROI).

Factors behind such a short heyday in Visayas Avenue, according to the audit report, include coverage of:

  • State visit of US President Barack Obama (April 28-29),
  • World Economic Forum on East Asia (May), and
  • Congressional hearings
    • Pork Barrel Scam (since 2013 – June) and
    • Makati City’s anomalies (September – ongoing), just to name a few

Other than political coverage, the launch of their first Koreanovela “Here Comes Mr. Oh” (currently on hiatus), which garnered 800,000 viewers, was also behind such positive performance.

Meanwhile, her younger sister in Broadcast City told another side of the story.

IBC 13 falls off bottomless cliff

The audited financial statements reflected on Channel 13 the continual suffering, both in financial position and performance. The balance sheet dictates the worst picture with the bloated capital deficiency of PHP 893.5 million — 23.9% more than last year’s restated value of PHP 721.3 million. The most notable liability with priority on the network, the Retirement/Separation Pay Payable, accrued PHP 654.7 million (up 12.4% from last year) that it cannot easily be paid with all assets combined.

Operation wise, IBC suffered the worst net loss (numerical and magnitude wise) with PHP 172.2 million (2.5 times the amount than last year with PHP 70.4 million). Digging deeper into detail, gross income and operating costs are directly related to sales revenue but administrative costs continue to rise annually.

Factors of failure, aside from the most obvious perennial obstacle on relying EZ Shop, the sole home shopping to make the network’s ends meet, include the opportunity loss for the three-month trial of the primetime block deal with Asian Television Content Corporation (ATC) from June 2 to August 31. ONE FCKawaii International,  and the PBA D-League were not able to spare them from operational bottomless pit at the last minute.

Details of financial information on two networks are now available on the COA website.


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[Photo courtesy of Wikimedia Commons / Commission on Audit]

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12 comments

  1. An improvement indeed for PTV, but I think is not enough.
    As for IBC, well, I think their downfall is inevitable, unless it will either privatized (85% probability) or decentralized (15%) and give the frequently to existing regional channels/give way to new provincial/regional channels.

    1. 1. A little fact from the audited income statement from PTV, the loss from operation accounted to PHP 150 million but the subsidy from the government is thrice the amount. Thus, a net income stated on the post above.

      Indeed, it’s not enough. The modernization program (including extensive capitalization and programming diversity) needs further implementation. But your agenda (your dream broadcaster) isn’t going to do so as we’re looking onward to the next administration and its fear of the next person handling it.

      2. If privatization was done way before without obstructions, there would be no problem for IBC. Holding on to such investment at this moment is completely ludicrous. In your hypothetical personal agenda, pwede rin mangyari kapag na-settle yung pending case but it’s not possible IRL.

  2. IBC 13 making a move after they signed a contract with Viva for the airing the CESAFI. It could be the one simple solution to rekindle their relationship that traced back in 1998 kaya lang baon sa utang.

    #SpeedUpPrivatization

    1. I heard that over Gab last week and I watched for a few minutes.

      The only matter is, if the national government had an astute business sense, dapat i-privatize agad o shut down kung worse ang performance at condition ang GOCC.

      Aabot pa ng siyam-siyam bago i-privatize dahil sa mabagal na proseso (red tape) at may pending case with R-II Builders.

      1. I heard that suggestion that IBC will closed down if they don’t speed up the privatization process from Sir JC on FromtheTube…

      2. Another point: Never heard of a rally of some IBC 13 employees in the last SONA of PNoy….

  3. And, just recently, there was a report from DWIZ that the government will finally give up IBC 13 to the private sector, and we all knew about it already. I just hope the government will be serious this time in 13’s privatization process.

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