GMA-7 income up 10% in third quarter

MANILA, Philippines - Broadcasting firm GMA Network said it remains on track of reaching its yearend target as it finished the first nine months of 2009 with a 10-percent increase in net income, the company said yesterday.  

Net income jumped to P2.15 billion from the P1.96 billion made in the same period in 2008 despite a series of natural calamities that recently struck the country and the global financial crisis that caused a decrease in ad spend among major advertisers this year.

GMA chairman, president and CEO Felipe Gozon expressed confidence the network can achieve and even exceed its net income target by yearend.

“We remain ahead of competition in terms of sales. Barring any major event that will affect the company’s performance for the remaining months, I think 2009 will be another breakthrough year for the network,” he said.

Gross revenues for the first nine months went up seven percent to P10.02 billion. Airtime revenues from TV and radio contributed P9.24 billion, while subscription fees from international operations and other revenue-generating activities of subsidiaries made P782 million.

Total operating expenses were kept to a single-digit growth of nine percent to P5.55 billion. Production costs increased two percent year-on-year to P2.92 billion.

Nine-month earnings before interests, taxes, depreciation, and amortization (EBITDA) settled at P3.71 billion.

Subscription revenues for GMA International jumped 54 percent over last year. Officials pointed out that the steady growth in the subscriber count of GMA’s two international channels — GMA Pinoy TV (GPTV) and GMA Life TV (GLTV) was responsible for the revenue upswing. Both channels are now available in the US, Canada, Europe, Middle East, North Africa, Australia, New Zealand, Japan, Guam, Papua New Guinea, Singapore, Hong Kong, and many other countries to cater to the international audience.

GPTV subscribers totaled 225,000 by the end of the third quarter, or a 17-percent increase year-on-year. The channel has an estimated 1.1 million viewers worldwide. GLTV subscribers are now at 109,000 worldwide, growing 142 percent since last year. 

GMA Worldwide Inc. (GWI), meanwhile, has syndicated locally-made programs to as far as Africa, Middle East and Europe. GWI had a positive revenue contribution with P28.3 million worth of syndication sales in the third quarter, equivalent to 90 percent of its total projected revenues for 2009.

Just recently, GWI sold the rights of the Philippine adaptation of Marimar and Dyesebel to countries such as Kenya, Uganda, Singapore and Malaysia.

The network continues its regional expansion to strengthen signal coverage in key provinces. The new five-kilowatt TV relay in Mt. Amuyao, Mt. Province which airs in Channel 5 was activated last Oct. 12. Transmitters and antenna systems for TV-10 Sto. Tomas, Benguet, TV-12 Cagayan de Oro, TV-7 Naga City and TV-12 Mt. Banoy, Batangas were likewise upgraded.