Internal Audit (Financial)
Financial Audit and Departmental Reviews
The available annual report online of ABS-CBN is for the year 2011, hence to be fair, financial data of the same year is used to evaluate the financial and operating performance of its competitors. GMA 7 published its financial statement on its website; however TV 5 seems to be reluctant to publish its financial reports online. In lieu of TV5’s actual financial statements, the news article published by The Philippine Daily Inquirer, which had the opportunity to have a copy of the statements filed by ABC Development Corp. (TV), was used. (All in Appendix 1) There is an industry wide decline in terms of advertising revenue in 2011 compared to 2010. This is due to high advertising spending in 2010 brought by political airtime purchased by the candidates of 2010 Presidential Election (ABS-CBN Annual Report 2011).To give a detailed and more meaningful comparisons about the networks’ (ABS-CBN, GMA, TV5) current financial standing, a brief presentation is prepared below highlighting the significant indicators. Net Income
ABS-CBN netted P2.4 billion in 2011, up by more than 40% from GMA’s P1.7 billion. TV 5, on the other hand, declared a Net loss of P4.14 billion. Gross Revenues and Advertising Revenues
As a more diversified conglomerate which has a significant stake in direct selling business, ABS-CBN, ridicules rivals with P28.2 billion consolidated revenues, while that of GMA and TV5, P13 billion and P2.31 billion respectively. Airtime revenue from advertisements is the best indicator to measure how much advertisers trust the programs offered by the Networks. For the year 2011, the network declared advertising revenue of P17.6 billion which is significantly higher than its rival, GMA, which reported airtime revenue of P11.9 billion. Ad Sales of ABS-CBN alone already reached more than P 17B, P5B better than GMA’s total revenue of P13 billion....
References: Lucas, D 2012, TV5 losses double to P4.1B in 2011, Inquirer Business, viewed 2 Feb 2013, < http://business.inquirer.net/66981/tv5-losses-double-to-p4-1b-in-2011> printscreen and put in the appendices
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