GMA Network profit jumps 55% to P1.7B in 9 months

GMA Network Inc. reported a 55-percent growth in its net income for the first nine months of the year as it continued to lead TV viewership ratings in the Mega-Manila area, resulting in higher advertising revenues.

GMA chairman and president Felipe Gozon said the network posted a net profit of P1.7 billion in the January to September period this year from P1.098 billion the previous level. Revenues, on the other hand, rose 36 percent to P7.4 billion from P5.45 billion a year ago.

Gozon said given the strong performance of the broadcasting firm’s programs, GMA will "most likely" exceed its full year income target of P2 billion this year compared with P1.5 billion in 2004.

Gozon also disclosed that the company’s international operations have been performing well with subscribers of GMA Pinoy TV reaching 40,000 as of end-August this year. He expects this to grow further to 50,000 by the end of the year.

GMA Pinoy TV, the international channel of GMA, is now being shown in Japan, Guam, and United States.

GMA officials expect to expand international operations in other overseas markets such as Singapore, Malaysia and the Middle East by the first semester of next year.

The network spent about $4 million to upgrade its facilities in preparation for the international operations. Another $1 million was earmarked for marketing and promotions, as GMA admitted that it has a lot of catching up to do in the international arena.

Gozon said the network will proceed with its planned initial public offering in the first quarter of next year, which is expected to raise around P9 billion from the sale of 30 percent of the company’s shares. "We’re definitely pursuing it. Nothing will stop us from doing it unless the economic conditions worsen," he said.

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

Gozon said the company’s main target for the year is to broaden its presence nationwide as it gears towards dominating provincial programming after unanimously leading in TV viewership ratings across Mega-Manila. He said the company would also be doing a lot of provincial tours to promote the network and in turn attract more viewers.

GMA has earmarked P175 million to P200 million to upgrade its facilities and infrastructure. Funding will come from internally-generated funds.

The network intends to build two state-of-the-art studios within its compound that will house more programs including huge variety shows.