PLDT earlier reported to have poured-in P7 billion worth of investments for TV 5, which in return failed to earn enough to offset the huge investments. TV5, although already gaining grounds in the tv ratings and tv ads market, has still failed to post profits in 2011 with an estimated 9-month net loss of P1 billion.
As a result Parent Company Philippine Long Distance Telephone Co. (PLDT), one of the country's most valuable listed firms, said on Thursday its third quarter net income fell 10% from year ago, as group revenues were partly hurt by a strong peso and high operating expenses of new ventures like TV5.
PLDT said net income in the September quarter was P9.3 billion ($217.4 million), compared with P10.3 billion a year earlier.Core net profit, which excludes currency and derivatives-related items, fell 6% in the third quarter to P9.6 billion. PLDT said it had cut its core profit guidance to P39 billion from P40.5 billion set early this year. PLDT has lost more than 7% so far this year, underperforming the main index which gained about 1%.
POST BY: TV NETWORK WAR