Pangilinan sees TV5 breaking even in about 3 years

THE third-largest media network in the Philippines could break even in three years' time as its losses are gradually narrowing, TV5 Chairman Manuel V. Pangilinan said.

"The losses are declining slowly and the numbers are getting better... [We expect to break even] not until maybe three years from now," Mr. Pangilinan said on the sidelines of a media briefing on Thursday in Makati City.

The Philippine Long Distance Telephone Co. (PLDT) group, through unit MediaQuest Corp, acquired ABC Development Corp., the operator of TV5, in 2009. Mediaquest bought TV5 from the Cojuangco group for P4 billion, and acquired MPB Primedia of Malaysia, the network's major block-timer, for $16 million. Around P12 billion was budgeted for capital expenditures and programming.

Early this month, Pilipinas Global Network Ltd. (PGN), a joint venture between PLDT and ABC Development Corp., signed an agreement with Malaysia's MEASAT Satellite Systems Sdn. Bhd. to broadcast TV5 content channels to over 120 countries across the Asia-Pacific, the Middle East and Eastern Africa.

Under the terms of the agreement signed by the two companies on Monday, PGN Limited will use MEASAT-3 to distribute the Aksyon TV International and Kapatid TV5 channels to over 120 countries.

When asked in November how the network will break even, news reports quoted Mr. Pangilinan as saying "We have to shift away from consumer capitalism, commodity capitalism to intellectual capitalism. In that regard, innovation is key, and the ability to embrace change, take risks."

In 2004, PLDT-Beneficial Trust Fund attempted to buy 66.7% of GMA Network for P8.5 billion. Negotiations ended when the fund's unit, MediaQuest, cut its offer to P12 billion from P14.6 billion.

Interests related to PLDT own TV5, BusinessWorld, and the Philippine Star, as well as a minority stake in the Philippine Daily Inquirer.

PLDT reported muted second-quarter and first-half profit growth -- though on track to meet its full-year goal -- on the back of a modest revenue increase amid a faster rate of growth in expenses.

Net profit growth was little changed at 0.68% to P10.609 billion in the second quarter. For the half, net profit was P20.001 billion, up just 1.4%.

On Friday, PLDT's shares ended at P3,000 apiece, down P14 or 0.46% from Thursday. -- Chrisee Jalyssa V. Dela Paz

MPIC to abide by SC rule on LRT-MRT common station site

MANILA, Philippines, August 11, 2014 (STAR) - Infrastructure giant Metro Pacific Investments Corp. (MPIC) vowed to comply with the decision of the Supreme Court with regards to the final location of the proposed P1.4 billion common station connecting the Light Rail Transit (LRT) and Metro Rail Transit (MRT) systems.

MPIC chairman Manuel V. Pangilinan said it has adopted a neutral position on the location of the common train station that is subject to a tug-of-war by two of its major business partners.

“We are partners with them. The SM Group is with us in the tollways business while Ayala is with us in LRT1 and the single ticketing system. So we are neutral,” Pangilinan said.

The Supreme Court has issued a temporary restraining order (TRO) preventing the Department of Transportation and Communications (DOTC) as well as the Light Rail Transit Authority (LRTA) from transferring the location of the train station to Trinoma Mall of property giant Ayala Land and SM City North EDSA of mall and banking giant Henry Sy.

Pangilinan said the company is open to both locations and would abide by the decision of the high tribunal as to the final site of the train station that would house the LRT1, MRT3, and MRT7 of diversified conglomerate San Miguel Corp. (SMC).

“We are agnostic whether where it is located. It is either in SM, Trinoma or somewhere in between. We are just interested in the train system. If the Supreme Court tells us move here then we will move there,” he said.
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The legal battle has put on hold the issuance of the Notice of Award to the MPIC-led Light Rail Manila Consortium that offered P9.35 billion to undertake the P65 billion LRT Line 1 Cavite extension project.

The TRO issued by the Supreme Court has tied the hands of the Department of Transportation and Communications (DOTC) from issuing the final green light for the public private partnership (PPP) project.

MPIC Light Rail Corp. leads the Light Rail Manila Consortium with 55 percent followed by AC Infrastructure Holdings Corp. of conglomerate Ayala Corp. with 35 percent, and Macquaire Infrastructure Holdings (Philippines) Pte Ltd. with 10 percent.

Pangilinan said the company would abide by the decision of the Supreme Court on the final location of the train station.

“The common station being in Trinoma is part of the terms of reference of the bid. I doubt whether unless that issue is resolved by the Supreme Court, the DOTC will award the project since it could be cited for contempt,” he added.

Transportation Secretary Joseph Emilio Abaya has proposed the construction of a “mini” train station that would house LRT1, MRT3 and MRT7 in front of SM City North EDSA apart from the common station in front of Trinoma Mall that would serve LRT1 and MRT3 as a “win-win” solution to the legal battle.

MPIC ‘neutral’ on common LRT/MRT station site

Manila, Philippines, August 11, 2014 - METRO Pacific Investments Corp. (MPIC) said it is neutral when it comes to the issue of where to locate the common station for the Light Rail Transit Line 1, Metro Rail Transit (MRT) Line 3, and the future MRT 7.

“We are exploring legal options. As of now, there’s nothing definitive,” MPIC chairman Manuel Pangilinan told reporters on the sidelines of the strategic partnership between the Philippine Long Distance Telephone Co. (PLDT) and Rocket Internet AG Rocket last week.

Earlier, the Supreme Court issued a temporary restraining order (TRO) stopping the government from implementing the transfer of the common station from its original location in front of The Annex at SM City North EDSA to Trinoma Mall, owned by MPIC partner the Ayala Corporation's subsidbary Ayala Land, Inc..

“We are agnostic on where it is located. It’s either SM or Trinoma or somewhere in between. We are just interested in the train system,” Pangilinan said.

He affirmed that they are open to both options. “We’re not in real estate so if they tell us to move there, then we will move.”

The Supreme Court’s TRO reinforces SM Prime Holding Inc.’s position in the case for Specific Performance of SM Prime and LRTA’s Memorandum of Agreement (MOA) dated September 29, 2009. The case is now pending before the Regional Trial Court of Pasay City.

SM Prime filed a lawsuit against government for changing the location of the common station to benefit a rival mall. It said it had an existing agreement with the government to build the common station for the three rail lines in front of SM North Edsa.

The government denied that it violated a 2009 agreement between SM Prime and the Department of Transportation and Communications, which oversees LRTA. It claimed that SM Prime’s naming rights over the project expired in 2011, even as it argued further that the new location would benefit more commuters.

The P1.4-billion Common Station is part of LRT’s North Extension Project that is expected to help alleviate the public transport shortage in Metro Manila.

LRT 1 currently runs from Baclaran in Pasay City to Roosevelt in Quezon City, LRT 2 runs from Santolan in Marikina City to Recto Avenue in Manila, while the MRT 3 runs from North Avenue in Quezon City to Taft Avenue in Pasay City.

The planned MRT 7 will begin at Tala, Caloocan City, passing through Lagro, Fairview, Novaliches, Batasan, Diliman, and Philcoa, before ending at the planned common station at Edsa and North Avenue. The railway will serve an estimated two million commuters in the northern parts of Quezon City and Caloocan City.

Meanwhile, the LRTA board last month approved the award of the P64.9 billion LRT Line 1 Cavite Extension (CavEX) project to the Ayala-Metro Pacific joint venture, said Hernando Carbrera, corporate secretary of LRTA.

The lone bidder for the CavEX project had offered to pay the government a concession premium of P9.35 billion for the right to build, operate, and manage the new rail line.

The Light Rail Manila Consortium is made up of Metro Pacific’s Light Rail Corp. with a 55-percent share; Ayala Corp.’s AC Infrastructure Holdings, with 35 percent; and Macquarie Infrastructure Holdings Pte. Ltd., with 10 percent.

Already approved by the National Economic and Development Authority (NEDA), the LRT 1 Cavite Extension project is the biggest infrastructure project under the government’s Public-Private Partnership (PPP) program.

The Cavite or South Extension Project will extend the existing LRT Line 1, which covers 21 stations from Roosevelt Avenue in Quezon City to Baclaran in Pasay City. The Cavex will extend the service line by 11.7 kilometers, covering 10 more stations that will pass through the cities of Parañaque and Las Piñas up to Bacoor, Cavite.

“We are partners with them [the Ayala and SM Group]. The SM Group is with us in the tollways and the Ayalas are in the LRT 1 and single ticketing system so we are neutral,” Pangilinan said.