GMA Network forecasts double-digit growth

MANILA, Philippines – Broadcasting company GMA Network is forecasting double-digit growth this year in its net income and revenues, largely due to higher ratings of its programs and international TV operations.

Following the company’s stockholders’ meeting yesterday, GMA chairman and president Felipe Gozon also revealed that from May 1 to 19 this year, flagship Channel 7’s advertising sales amounted to more than P1 billion.

Given this, he said the company expects a “very good” second quarter in terms of net profit.

Last year, GMA posted a P2.37-billion net income. From January to March this year, the network posted a net income of P501 million from P454 million in the same period last year. Gross revenues for the first three months rose three percent to P2.65 billion despite the contraction in advertising spending.

Gozon said he expects the increased net income this year to result from higher TV program ratings and strong revenues from international and radio operations.

“Further growth is expected from our international operation and regional operations, film ventures, film syndication and new media initiatives,” he said.

“Our priority in 2009 is to achieve superiority in ratings over our nearest competitor, not only in Mega Manila and in Luzon, but also nationwide. Our initiative to improve each our reach and signal in the regions will remain unabated,” he said.

Last year, channel 7 and its affiliate QTV channel 11 programs continued to deliver high ratings especially in Mega Manila and Luzon that comprise 77 percent of the TV viewing audience nationwide.

Gozon said the company will be spending over P200 million more this year to acquire new transmitters and other equipment to improve the signal and quality and expand the reach of its remaining TV stations particularly in Visayas and Mindanao.

The network’s top executive also expects revenues from election-related commercials next year to exceed the P500 million that it booked in 2007.

He noted that political advertisements have a tendency to add rather than completely displace traditional advertisers.

“But it’s conceded that advertisers stay out of the market during the frenzy for political advertisements,” he said.