GMA Network’s income rose 4% to P1.4 billion in first semester

GMA Network Inc. said Monday net income grew 4 percent in the first half on lower expenses as a result of community lockdown imposed by the government to control the pandemic.

The broadcast network said net income reached P1.40 billion in the first half, up from P1.35 billion in the same period last year.

Consolidated advertising revenues, (airtime, online, international) which comprised 91 percent of the company’s revenue pie, amounted to P6.14 billion in the six-month period, a net reduction of 15 percent from P7.26 billion a year ago.

“Biggest drag came from the absence of political advocacies and advertisements this year, aggravated by the onset of the COVID-19 pandemic/ lockdown which disrupted the business landscape across countries,” the company said.

“Consequently, all airtime-revenue generating platforms yielded to prior year’s top-line results faced with the above-mentioned double-dilemma. Without the windfall from last year’s elections, recurring advertising sales still ended lower than a year ago, albeit narrowing the gap to only 5 percent shy of last year,” it said. 

GMA said this was partly cushioned by the improvement in online advertising sales, which grew by 23 percent in the first half.

Other revenues, subscriptions and sales from other sources and subsidiaries softened by 7 percent to P606 million from P653 million.

GMA said revenues began to pick up in recent months.

“Apart from this, the shift in advertising placements resulting from the closure of the company’s biggest and closest competitor [ABS-CBN] due to the expiration of its free-to-air broadcast franchise in early May, provided some incremental revenues,” it said.

Total consolidated operating expenses amounted to P4.73 billion in the six-month period, down by 21 percent from P6.01 billion a year earlier.

Production cost, talent fees and other direct costs also went down by 40 percent to P1.90 billion from P3.17 billion.

Courtesy of Darwin G. Amojelar|ManilaStandard

Source: Peso Economics