GMA Network posts P400-M net income in 1st qtr

Boosted by the continued rise in its viewership ratings, GMA Network Inc. reported a 62-percent surge in its first quarter net income this year to P400 million from P246 million a year earlier.

GMA registered gross revenues of P1.9 billion, up 27 percent from P1.5 billion a year ago. This was despite the absence of political advertisements that helped pump up the broadcasting firm’s revenues last year.

Operating expenses, however, rose 12 percent to P898 million largely due to increased salaries and production costs as GMA continued to dominate the viewership ratings in mega Manila.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at P770 million, 42 percent higher than a year ago.

Commenting on the network’s impressive performance, GMA chairman and president Felipe L. Gozon said: "I am pleased that despite the traditionally weak first quarter financial performance of the industry, we were able to generate that much profit."

GMA has managed to maintain its lead in TV ratings in all day parts, including the highly important primetime block. As of end-March this year, GMA has posted total day ratings of 19.5 percent as against its main competitor’s 14 percent, according to data from research firm AGB Philippines.

GMA launched two new "super soaps" in April and May that charged up the network’s performance in primetime TV ratings. "Darna"registered the highest rating for a pilot episode in Philippine primetime TV history while "Encantadia" has consistently posted phenomenal ratings since it began airing last May 2.

To increase its viewership, GMA is set to embark on a provincial campaign following its successful trip to Cebu recently.

Gozon said since GMA has commissioned its new antenna system in Cebu November 2004, the TV station’s signal has been very competitive with or even superior to its rival’s.

Gozon added that the network’s Cebu studio complex is also being rehabilitated. "GMA’s Cebu TV studio facility has been augmented with professional studio cameras," he said.

In Davao, GMA has completed and commissioned last January its new solid-state VHF transmitter which resulted in a much stronger signal in the area.

GMA is also preparing to construct a TV station in Bacolod City after having been granted a television frequency by the National Telecommunications Commission.

GMA has also signed an agreement with Comcast, the biggest cable operator in the US, for the carriage of GMA Pinoy TV in the United States. GMA’s international channel is now available in Japan and Guam.

The company’s subsidiary, Citynet, Inc., is currently preparing for the programming line-up for Channel 11, which would provide an additional platform for GMA Network to showcase its programs and talents.

GMA through film outfit GMA Films Inc., is likewise producing a new movie starring its young stars scheduled for showing in a few months. This would be followed by other movie projects within the year.