The third quarter of the year proved to be a banner period for broadcasting firm GMA Network Inc. with both earnings and revenues posting double-digit gains on the back of improved advertising revenues as well as higher TV viewership ratings.
In a press briefing yesterday, GMA vice-president for finance Ronaldo P. Mastrili said net profit grew 22.65 percent to P823 million from July to September this year compared with P671 million a year earlier as revenues expanded 11 percent.
Gross revenues reached P3.48 billion from P3.14 billion a year earlier.
Advertising minutes rose 18.1 percent to 27,998 from 23,714 a year ago as the network continued its reign in Mega Manila with an average total day rating of 17.7 percent during the period under review.
Mega Manila accounts for 47.6 percent of the total TV households for research firm AGB Nielsen’s National Urban TV Audience Measurement (NUTAM).
Ari Chio, vice-president for GMA’s Investor Relations, said 19 out of the top 30 overall TV programs came from the network.
Chio noted that the network has taken the lead in Southern Luzon for the past 11 weeks.
“Advertising revenues continued to grow as our ratings improve nationwide, “ said Mastrili.
In the nine months ending September this year, GMA’s net earnings climbed 10 percent to P1.96 billion as against P1.79 billion a year earlier. Gross revenues hit an all-time high of P9.4 billion or an increase of six percent from P8.8 billion last year. Airtime revenues from TV and radio went up six percent to P8.8 billion.
Earnings before interests, taxes, amortization and depreciation (EBITDA) increased three percent to P3.6 billion.
Total operating cost amounted to 5.1 billion, up six percent due to a significant rise in advertising and promotions as well as research and survey to uphold the network’s leading position in Mega Manila, to capture the lead in the national TV ratings survey, and for the introduction of its international channels GMA Pinoy TV and Life TV in new areas and countries.
GMA chairman and chief executive officer Felipe Gozon said the network is expected to post a slightly higher net income this year than in 2007 even as they expect a traditionally weak fourth quarter.
“Net income will be a little higher but not as much as we want it to be. If we can have the same fourth quarter as last year then that would be ok,” Gozon said.
From October 1-23, the network has already registered P900 million in sales. The figure excludes the operations of affiliate QTV Channel 11 and its two international channels whose subscriber base has grown to a total of 238,000 as of end-September 2008.
GMA executive vice-president and chief operating officer Gilberto R. Duavit said the network may increase its ad rates next year but this would depend on the prevailing market conditions.
This year, the network raised its ad rates by five to seven percent.
Duavit said the network is also studying the possibility of launching a 24/7 all news-channel.
As of end-September 2008, GMA’s total assets amounted to P12.3 billion while total liabilities dropped 35 percent from P4.6 billion to P2.96 billion.