TV Tokyo to slice expenses by $21.7 million

TOKYO — TV Asahi prexy Masao Kimiwada told reporters on Monday that compensation for the net’s board members will be cut an average of 12 percent from July in response to dismal ad sales numbers.

The pay cuts will affect 29 board members and will be in effect for nine months, until March 2009.

Kimiwada also said that TV Asahi is setting up a special task force to study ways to raise Revenues and cut expenses.

TV Asahi spot ad sales for June were down ten percent compared with the same month the previous year.

In related news, TV Tokyo chairman Sadahiko Sugaya and prexy Masayuki Shimada announced they were taking 15 percent compensation cuts on Monday. Also, pay for senior managing and managing directors will be cut 10 percent and directors, five percent. Execs will also take a 10 percent reduction in personal expenses.

Furthermore, TV Tokyo, the smallest of the Japan’s five networks, plans to slice total expenses 2.3 billion yen ($21.7 million dollars in the current fiscal year), including 1.9 billion yen ($17.9 million) in production costs. The aim is to finish fiscal 2007 with operating profits of 1.3 billion yen ($12.3 million).

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