BROADCAST firm TV5 Network Inc. is upbeat on turning a profit by 2019 as it continues efforts to control operating expenses and narrow losses.
TV5 President Vincent “Chot” Reyes, who is also head coach of the national men’s basketball team, said: “We are looking at 66 percent improvement in our bottom line from last year to this year. We’re not going to hit that target. We are going to fall a little bit short, about 50 percent, but still a great performance by any stretch of the imagination.”
“Make no mistake about it, we’re still not profitable. We’re still in the red, but the loss from last year to this year has been cut in half,” he told reporters on Thursday following the media launch of TV5’s partnership with US-based sports media conglomerate ESPN.
“Next year, again, we’re looking at cutting that by… again the target is another 66 percent [improvement]. That’s 2018, towards the path that paves the way for, hopefully, a break even in 2019. That’s always been the target,” Reyes added.
“And it’s not like we are cutting just to cut, it’s because we are no longer doing a lot of things we used to do before so there’s really a need to restructure and reorganize, and that’s something we see across all industries, even other networks are making cost-cutting [efforts]. The reality is because of all the technology, there is really a lot of rightsizing going on,” he said.
Asked if the network plans to axe more jobs, Reyes said, “It’s not off the table, anything can happen.” He said they currently have 700 employees, or about half the 1,400 they had three years ago.
In February this year TV5 cut more than 100 employees to further reduce expenses.
“[Because] it’s a continuing effort, we have to make sure that our cost structure is such that it gives a chance to break even in 2019… So we have an idea of what the revenue is going to be, so we have an idea of how much we can generate in revenue next year and in 2019,” he said.
“My job, as the CEO, is to make sure our cost structure fits into that revenue [model]. In every business, you have to make sure your revenue is higher than your cost because that’s why you are in business,” he said.