GMA Network net income drops 39% to P1.71B in 2011

MANILA, Philippines - Broadcast firm GMA Network Inc. reported a 39-percent drop in net profit last year to P1.71 billion, from P2.81 billion in 2010, due to the absence of political advertising revenues.

In a briefing yesterday, GMA president Gilbert Duavit said the company is eyeing a substantial growth this year with net earnings seen to hit P2.8 billion, up 64 percent from the 2011 figure, as major corporations ramp up advertising spending.

 “There are more palpable indications this year will be far better than last year as we move to contain our costs and see the resurgence of advertising spending,” he said.

GMA executive vice-president Felipe Yalong said earnings growth will also be driven by management’s efforts to cut down costs. For this year, the network is allotting around P650 million for its capital expenditures, 27 percent lower than the P896 million spent a year earlier.

Meanwhile, GMA registered consolidated revenues of P13.08 billion, down nine percent from P14.3 billion. But excluding the P2.05 billion worth of revenues from political ads in 2010, revenues rose seven percent from P12.26 billion.

GMA raised its ad loading minutes by 2.1 percent even with rate adjustments that took effect in February 2011.

GMA Radio recorded a 15-percent growth in revenues from regular advertising, largely driven by improved ratings both in the AM and FM bands.

GMA Regional TV registered a 21-percent hike year-on-year in recurring ad placements.

GMA News TV, formerly QTV, incurred a loss of less than P500 million.

Meanwhile, GMA International chalked in revenues of P965 million, an improvement of four percent from P925 million a year earlier.

GMA International runs the network’s flagship international channel GMA Pinoy TV (GPTV) and the Filipino lifestyle channel GMA Life TV (GLTV) with estimated global viewer counts of two million and one million, respectively.

Both channels can be accessed through a number of channel carriers in Filipino viewer-rich territories abroad such as the US, Canada, Middle East, Africa, Japan, Guam, Saipan, Hong Kong, Singapore, Papua New Guinea, Australia, New Zealand, Malaysia, Diego Garcia, Europe and the Carribean.

GMA’s top-rating radio stations DZBB (AM band) and DWLS (FM band) are also now widely distributed among Filipino communities abroad.

The group will also strengthen its international video-on-demand (VOD) offer for multiple platform distribution to take advantage of changes in subscribers’ viewing habits and the growing popularity of viewing content via the Internet and mobile and portable devices.

To maintain its strong foothold in the industry, GMA will continue its aggressive expansion with the installation of originating stations in Ilocos and Bicol, slated to be operational by the third quarter this year.