GMA Network income hits P2.27 billion in 9 months

MANILA, Philippines – GMA Network Inc. chalked in a net income of P2.27 billion in the first nine months this year, six percent higher than in the same period last year as consolidated revenues went up eight percent to P10.88 billion, company executives said yesterday.

The hike in GMA’s top line was backed by the accumulation of airtime revenues from media platforms and subscription revenues from international operations, which overtook last year’s performance.

Revenues from flagship station Channel 7 rose seven percent to P9.26 billion while UHF station QTV Channel 11 registered a 10 percent hike in revenues to P346 million.

Meanwhile, revenues from international operations expanded 10 percent to P700 million while radio revenues jumped 73 percent to P443 million.

However, GMA reported a 26 percent drop in net earnings in the third quarter on lower revenues as a result of weakened ad spending by major advertisers.

In a press briefing yesterday, GMA chairman and chief executive Felipe L. Gozon, however, said he was confident the network would bounce back as two big advertisers have returned and expects more to follow suit.

Net income from July to September this year fell to P583 million, its lowest level in the last three years and a 26 percent decline from the P788 million recorded in the same period in 2009. Revenues decreased by 10 percent to P3.31 billion from P3.69 billion.

Gozon explained that while the third quarter results were disappointing, GMA was well on its way to recovery especially with its widening lead in Mega Manila viewership. He said October figures look promising with sales revenues already reaching more than P1 billion.

He said the network was expecting to post lower sales revenues this year because of its move to increase ad rates. He likewise pointed out that the previous year included advocacy ads as politicians realized the value of television in their quest for broad exposure in the runner-up to the presidential elections last May.

Given the return of major advertisers and the launch of new shows, Gozon said the network is confident it would exceed its net income target of P3 billion this year. “We have not revised our targets. If the trend does not stop then expect things to go smoothly,” he said.

“The times ahead are rosy, and even if revenues for the company went on a short-term hiatus, we are positive that we can finish the year with another banner performance – both in ratings and profits. Our advertising load is on the uptrend as big advertisers have returned and made huge commitments with the network,” Gozon added.

Newly-elected GMA president Gilberto R. Duavit Jr., said Wille Revillame’s new show on TV5 hardly made a dent on GMA’s performance and ratings. “The anticipated effect was not even as pronounced as what was expected in so far as GMA is concerned,” he said.

During the special meeting yesterday, the company’s board also approved the declaration of a special cash dividend of 25 centavos each share to stockholders on record as of Non. 17, payable on Dec. 8. The cash dividends are equivalent to a little over P1.2 billion, Duavit said.