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 FC, Kawaii 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]