GMA Network posts P1.044B net income in first half 2005

GMA Network, Inc. announced a 39 percent increase in net income of P1.044 billion for the first six months of this year from P752 billion of the same period last year.

The company, which is known for its TV broadcasting brand as "Kapuso", remains on track towards reaching its year-end target.

Gross revenues for the first six months reached P4.5 billion, an increase of 24 percent over last year's P3.6 billion.

Likewise, operating expenses grew by 20 percent to P2.07 billion due to higher production costs, salaries, and other expenses as the Network now features three prime time soaps that have helped solidify GMA-7's lead over its competitor.

Earnings before interest, taxes, depreciation, and amortization stood at P1.9 billion in the first half, 29 percent higher than last year's figures.

In a company's statement, GMA Network Chairman, President and CEO Felipe L. Gozon expressed his optimism that the company will finish strong this year and expects more positive results after the Network has completed its expansion projects.

"Once our regional and international expansion efforts are completely in place, we expect to improve further on our performance," he said.

Gozon also said that he is confident that the Network can proceed with the much-awaited IPO by early next year.

The "Kapuso" station continues to lead in TV ratings in all day parts, including the highly important primetime block. For the period January to June 2005, GMA posted an average total day ratings of 18.8 percent against its competitor's 13.8 percent, based on data from AGB Philippines.

Moreover, 17 out of the top 20 programs for the first six months of 2005 were from GMA based on data from Nielsen while according to AGB data, 14 GMA programs were among the top twenty. GMA launched "Sugo" last July 4, another primetime hit which has helped maintain the Network's strong ratings performance in primetime.

GMA continues to hold on-the-ground activities in key cities across the country to increase awareness among local viewers of its top-rating programs including Cebu.

The Network has been showcasing its best public affairs documentaries and has been providing free medical services in major cities, among other relevant activities, that have created lasting impact among its viewers in the provinces. GMA also launched nationwide the third edition of its highly-popular reality-based "artista" search Starstruck, last weekend which received overwhelming responses in all areas where it has been launched.

GMA's international channel, GMA Pinoy TV, was successfully launched last July 23 in San Francisco, USA. After only two days of launching the channel, GMA Pinoy TV already has thousands of subscribers in the Bay Area, which according to Comcast, the US cable carrier, broke the records for ethnic programs. GMA Pinoy TV is also available in Japan and Guam.

GMA Network is expected to begin airing programs for Channel 11 by November this year, providing an additional platform for GMA to showcase new programs and talents.

GMA Films' latest flick will be shown in major theaters nationwide soon, and the film outfit is producing a movie version of the primetime hit Mulawin, in time for the Metro Manila Film Festival in December.